FREE CPRP Physician Compensation and Contracts Questions and Answers

Question 1

Which of the following physician compensation models is most directly scrutinized under the Stark Law for potential non-compliance due to its inherent structure?

Accepted Answer

A model where compensation is based directly on the volume or value of referrals for designated health services (DHS).

Answer

A model that rewards physicians for achieving specific quality metrics and patient satisfaction scores.

Answer

A model based purely on a fixed annual salary that is consistent with fair market value.

Answer

A model that compensates physicians based on their personal productivity (e.g., wRVUs) for services they personally perform.

Question 2

A rural hospital is recruiting a highly experienced orthopedic surgeon to a competitive market. The proposed compensation package is at the 90th percentile of national survey data. To defend this compensation level as Fair Market Value (FMV) and commercially reasonable, what is the most critical documentation the hospital must secure?

Accepted Answer

An independent, third-party FMV opinion that analyzes the candidate's specific experience, subspecialty, and the unique needs and realities of the local market.

Answer

A copy of the compensation packages offered to all other surgeons in the same department.

Answer

A signed attestation from the physician candidate stating they believe the compensation is fair.

Answer

A verbal agreement from the hospital CEO confirming the offer is necessary for recruitment.

Question 3

In a physician employment agreement, what is the primary purpose of a restrictive covenant, also known as a non-compete clause?

Accepted Answer

To protect the employer's legitimate business interests, such as its patient base and referral sources, for a reasonable time and within a specific geographic area after the physician leaves.

Answer

To penalize the physician with a large financial penalty if they resign before the initial contract term ends.

Answer

To prevent the physician from ever practicing medicine again in the same state after leaving the employer.

Answer

To guarantee the physician a lifetime of employment with the healthcare organization.

Question 4

A primary care physician's contract includes a compensation model with a base salary for meeting a 4,500 wRVU threshold and a conversion factor of $55.00 for all subsequent wRVUs. If the physician generates 5,200 wRVUs in a year, how is their productivity incentive bonus calculated?

Accepted Answer

The 700 wRVUs generated above the threshold are multiplied by the $55.00 conversion factor.

Answer

The total 5,200 wRVUs are multiplied by the $55.00 conversion factor.

Answer

The base salary is subtracted from the total value of wRVUs generated.

Answer

A fixed, predetermined bonus amount is paid for exceeding the 4,500 wRVU threshold.

Question 5

Which of the following best describes the function of 'tail coverage' in a claims-made medical malpractice insurance policy?

Accepted Answer

It is an extended reporting endorsement that covers claims made *after* the policy is terminated for incidents that occurred *during* the policy period.

Answer

It provides additional coverage for claims that exceed the primary policy's liability limits during employment.

Answer

It is a type of insurance that covers the physician for administrative or legal costs related to medical license defense.

Answer

It covers the employer for any claims filed against them due to the actions of a physician employee.

Question 6

A health system is offering a contract to a new physician completing her residency. The offer includes a two-year guaranteed income. What is the most likely reason for structuring the initial compensation this way?

Accepted Answer

To provide the new physician with a stable and predictable income while they build their patient panel, after which they will typically transition to a productivity-based model.

Answer

To permanently lock in the physician's salary for their entire tenure, regardless of future productivity.

Answer

To comply with federal regulations that mandate all new physicians receive a guaranteed salary for at least one year.

Answer

To eliminate the need for the physician to carry malpractice insurance during the initial guarantee period.