Hermann agreement updates IRS guidelines for incentives.
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.
Gardner, Carton & Douglas, Chicago, IL.
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D017408:Guidelines as Topic; D006746:Hospital Bed Capacity, 500 and over; D008505:Medical Staff, Hospital / Q000191:economics* / Q000331:legislation & jurisprudence; D010560:Personnel Selection / Q000331:legislation & jurisprudence*; D010816:Physician Incentive Plans / Q000331:legislation & jurisprudence*; D013660:Taxes / Q000331:legislation & jurisprudence*; D013781:Texas; D014481:United States