Hermann agreement updates IRS guidelines for incentives
Broccolo, B.M.; Peregrine, M.W.
Healthcare Financial Management Journal of the Healthcare Financial Management Association 49(1): 64
1995
ISSN/ISBN: 0735-0732 PMID: 10146129 Document Number: 453246
The October 1994 agreement between the Internal Revenue Service (IRS) and Hermann Hospital of Houston, Texas, elucidates current IRS policy on physician recruitment incentives. The IRS distinguishes between the recruiting and the retention of physicians and perimts incentives beyond reasonable compensation in the former but not the latter circumstance. This new agreement, while not legally precedential, nevertheless provides guidance for healthcare organizations seeking safe harbor protection.