Method and system for implementing and tracking cost-saving measures in hospitals and compensating physicians

Abstract

A method and system whereby one or more physicians work with a hospital to create savings and are compensated in a manner that is legal and acceptable to the United States Office of Inspector General of the Health and Human Services Department (OIG). In one example, a physician is paid to help implement cost-saving measures by the hospital or a consultant to the hospital under a personal service contract based upon an OIG safe harbor provision. In another example, the hospital can compensate physicians of its choosing for otherwise uncompensated services under the same safe harbor provision. Projected savings can be taken into consideration by the hospital when it determines how much it can afford to pay to physicians, although payments are made irrespective of whether projected savings are realized.

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