URMC Compliance Program Policy Manual:
Physician Recruitment

The recruitment and retention of physicians requires special care to comply with applicable law. Physician recruitment has implications under the anti-kickback laws, the Stark law, and the IRS rules governing an entity's tax-exempt status. Each recruitment package or commitment should be in writing, consistent with guidelines established by the tax-exempt entity. New or unique recruitment arrangements should be reviewed by the Department Chair or other senior supervisor with the Compliance Officer. In general, support provided to a new physician is most likely to be acceptable if it is provided in order to persuade the physician to relocate to the recruiter's geographic service area in order to become a member of the professional staff, or if it is provided to a new physician completing his or her training. Support should be of limited duration. The physician cannot be required to refer patients to the recruiting entity, and the amount of compensation or support cannot be related to the volume or value of referrals. Income guarantees present special issues and should be reviewed by the Compliance Officer and counsel on a case by case basis.