Jack L. Caynon, III

2018 Non-Monetary Compensation Limits

September 2018

Jack L. Caynon, III
Under the federal Stark Law, hospitals may provide non-monetary compensation to physicians up to an aggregate amount of $407 for calendar year 2018. The dollar limit for "medical staff incidental benefits" (e.g., meals, parking and other items or incidental services that are used on the hospital's campus) is less than $34 per occurrence for calendar year 2018. In addition to the non-monetary compensation limit, an entity that has a formal medical staff may provide one local medical staff appreciation event per year for the entire medical staff. It should be noted that any gifts or gratuities provided in connection with the medical staff appreciation event are subject to the $407 limit. 

In addition, there are several criteria that must be satisfied to meet the Stark Law's exception for non-monetary compensation and medical staff incidental benefits. The gifts or gratuities cannot be cash or cash equivalents; a physician cannot solicit the hospital for the gift or gratuity,  the gift or gratuity cannot be based upon the volume or value of referrals, and the maximum cannot be aggregated to make a larger gift to a group. 

The government expects hospitals to inventory non-monetary compensation and benefits to confirm they are meeting the law's requirements. Hospitals should update their non-monetary compensation tracking tools to reflect the new annual limits each year. Further, hospitals should review non-monetary compensation provided in 2018 to ensure that such compensation did not exceed the limit and take any necessary corrective action to repay excess amounts within the allotted time provided by the government.

If you have any questions or would like additional information about this topic, please contact Jack Caynon at 503.243.1652 or jcaynon@sussmanshank.com.

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