Recording of Physician Compensation Arrangements: Fair Market Value and Commercial Reasonableness

Within the ever-changing environment in which healthcare enterprises operate, and given the severity of regulatory penalties for entering into legally impermissible arrangements, it is critical to obtain appropriate documentation of the compensation arrangement's Fair Market Value (FMV) and commercially reasonableness in order to withstand inspection from the OIG and IRS – especially in light of the passage of healthcare reform and the government's overall increasing level of regulatory scrutiny.