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Client Alert

 

Legal Alert!
Paid On-Call Arrangements

In its Advisory Opinion (No. 09-05) issued May 14, 2009 (the "2009 Opinion"), the Department of Health and Human Services' Office of Inspector General (the "OIG") revisited the issue of paid on-call arrangements.  While approving the arrangement that is the subject of the 2009 Opinion and recognizing that legitimate reasons may exist for paid on-call arrangements, the OIG reiterated its concern regarding the potential misuse of such arrangements by both physicians and hospitals as had been previously cited in its Advisory Opinion (No. 07-10) issued September 20, 2007 ("2007 Opinion" and together with the 2009 Opinion, the "Opinions").  Specifically, the OIG cautioned that (1) physicians may demand on-call compensation as a condition of providing services at the hospitals, and (2) payments by hospitals could be used to entice physicians to generate business for the hospital.

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