QUESTION:    In a nutshell, how does deferred compensation personal services agreement for ED call coverage work?

ANSWER:    In a deferred compensation program, a hospital would enter into an individual personal services agreement with those physicians on the medical staff who wish to participate in the program. Those physicians would provide ED call coverage and assume other responsibilities in return for compensation pursuant to a deferred compensation plan.

In return for the physician’s services, the hospital would credit the account established for the physician pursuant to the deferred compensation plan each day that the physician is scheduled by the hospital for, and in fact provides, ED call coverage. The amounts credited are subject to distribution and investment vesting rights and forfeiture provisions as described in the plan (for example, being excluded or precluded from Medicare, Medicaid, or any other federal or state health care program; failure to remain on the active staff; and failure to maintain malpractice insurance coverage, among other things, would be subject to forfeiture).

The agreement would be in effect for a one-year term, automatically renewable for additional terms of one year unless either party serves written notice to the other of its intent not to renew. If the hospital serves notice of its intent not to renew, any payments or benefits of the physician that have been accrued under the deferred compensation plan shall become vested and payable to the physician as of the expiration of the then current term. If the physician serves notice of intent not to renew, any payments or benefits that have been accrued under the plan but not yet vested shall be forfeited by the physician.

The amounts credited to each physician’s account would not be presently available to the physician, but will vest in the future, and many physicians consider the amounts as part of their retirement packages.

Join Linda Haddad and Alan Steinberg for more information on this topic and other topics in their “EMTALA & ED Call – What’s Hot Now?” audio conference on September 2, 2014.