Beyond Wages_ Taxation and Reasonableness of Alternative Forms of Physician Compensation

Hospitals and health systems are looking for creative options in structuring physician compensation packages. While salaries can include much more than simply base wages, it is important to consider which items are taxable to the physician. In addition, hospitals should…

Beyond Wages_ Taxation and Reasonableness of Alternative Forms of Physician Compensation

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Hospitals and health systems are looking for creative options in structuring physician compensation packages. While salaries can include much more than simply base wages, it is important to consider which items are taxable to the physician. In addition, hospitals should consider how outside-the-box payments affect reasonable compensation under regulatory rules and guidance. When entering into compensation contracts, both hospitals and physicians should be aware of which items are subject to tax and which are included in total fair market value physician compensation.

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