business

Payment for on-call coverage becoming more common

Rates must be fair market value to avoid violating rules on doctor-hospital alliances.

By Victoria Stagg Elliott — Posted May 9, 2011

Print  |   Email  |   Respond  |   Reprints  |   Like Facebook  |   Share Twitter  |   Tweet Linkedin

A growing percentage of physicians get some form of payment for providing on-call coverage, according to a report issued April 20 by the Medical Group Management Assn.

Hospitals have had a harder time securing on-call coverage during the past few years, and the number of physicians receiving compensation for the service grew from 59% in 2009 to 65% in 2010.

"Physicians want to be compensated for call, and your younger, newer physicians are much more tuned into that than older physicians," said Jeffrey B. Milburn, an independent consultant with MGMA Health Care Consulting Group in Englewood, Colo. "Physicians realize the value of their time and services and are negotiating compensation for on-call coverage."

How physicians are compensated for on-call coverage shifted slightly. A daily stipend was the most common form of payment, with 35% of physicians providing call coverage paid this way in 2010 compared with 33% in 2009. But more are being paid annually. An additional 21% received annual pay in 2010, an increase from 14% in 2009. About 6% were paid by the hour in 2010, down from 8% in 2009.

But experts said physicians seeking payment for on-call coverage need to balance several concerns. Any money paid must be fair market value to avoid running afoul of regulations governing hospital-physician relationships. Nonprofit hospitals need to be aware of Internal Revenue Service regulations to maintain that status.

Experts said that although payment for call coverage is becoming more common nationally, there are wide variations by region, group size and medical specialty.

"Payment for call is a trend, but it depends on your market," Milburn said. "In some areas, paying for call coverage is solidifying. In other areas, it hasn't even started."

Back to top


ADVERTISEMENT

ADVERTISE HERE


Featured
Read story

Confronting bias against obese patients

Medical educators are starting to raise awareness about how weight-related stigma can impair patient-physician communication and the treatment of obesity. Read story


Read story

Goodbye

American Medical News is ceasing publication after 55 years of serving physicians by keeping them informed of their rapidly changing profession. Read story


Read story

Policing medical practice employees after work

Doctors can try to regulate staff actions outside the office, but they must watch what they try to stamp out and how they do it. Read story


Read story

Diabetes prevention: Set on a course for lifestyle change

The YMCA's evidence-based program is helping prediabetic patients eat right, get active and lose weight. Read story


Read story

Medicaid's muddled preventive care picture

The health system reform law promises no-cost coverage of a lengthy list of screenings and other prevention services, but some beneficiaries still might miss out. Read story


Read story

How to get tax breaks for your medical practice

Federal, state and local governments offer doctors incentives because practices are recognized as economic engines. But physicians must know how and where to find them. Read story


Read story

Advance pay ACOs: A down payment on Medicare's future

Accountable care organizations that pay doctors up-front bring practice improvements, but it's unclear yet if program actuaries will see a return on investment. Read story


Read story

Physician liability: Your team, your legal risk

When health care team members drop the ball, it's often doctors who end up in court. How can physicians improve such care and avoid risks? Read story

  • Stay informed
  • Twitter
  • Facebook
  • RSS
  • LinkedIn