Anyone reading this article should not act upon this information without seeking professional legal advice applicable to his or her own specific circumstances. There can be several reasons why a home care agency or hospice may want to pay a physician to provide services to it. It may pay a physician to serve as it's Medical Director. Or, perhaps, the physician receives a fee for serving as an officer of the agency or a member of the agency's Board of Directors. Similarly, a physician may be paid to serve as a member of the agency's group of professional personnel.
Similar arrangements can occur with a hospice.
Whatever the reason, paying a physician to provide services to your agency or hospice has ramifications which must not be overlooked in structuring the relationship. For example, the payments may void the physician's ability to certify plans of care as well as his or her right to receive Medicare reimbursement for care plan oversight. The point is, although making payments to a physician is not itself illegal, there are a number of ramifications of those payments which must be taken into account as the relationship is established. Therefore, if you expect the physician to continue to be the certifying physician for some of your agency's patients, you must be sure the relationship does not result in the physician having a significant ownership in your agency or a significant financial or contractual relationship with your agency. The limitations do not apply to an HHA that is classified as a sole community HHA in accordance with the regulations.