Financial Aspects of Physician Group Practice Arrangements

July 25, 2015

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With the implementation of the Medicare Resource-Based Relative Value Scale (RBRVS) and in light of
the continuing attacks on physician reimbursement, many new physicians are joining group practices
rather than going it alone. When joining a group medical practice, a new doctor will be offered an
employment contract outlining both the financial and legal arrangements of the relationship. While legal
aspects should not be ignored, it is the financial issues that will represent the majority of the contract terms. This article discusses the major financial arrangements in a group practice employment contract and what a new doctor should look for when entering such agreements.


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