Tips for Medical Directors
If you choose to accept a medical directorship at a nursing home, medical clinic or other facility, you must be prepared to assume substantial professional responsibility for the care delivered at the facility or clinic.
Be careful when you see advertisements for a "medical director" where it is promised that you will not have to be present or do much work at all in exchange for your monthly payments.
As medical director, patients (both your own patients and the patients of other attending physicians) and their families count on you, and State and
Federal authorities may hold you accountable as well.
To do this job well, you should:
• actively oversee clinical care in the facility;
• lead the medical staff to meet the standard of care;
• ensure proper training, education, and oversight for physicians, nurses, and other staff members; and
• identify and address quality problems.
Case Examples of Medical Directorship Issues
Medical Directorship Is Alleged to be Payment for Referrals
A physician group practice paid the Government $1 million and entered into a 5-year Corporate Integrity Agreement to settle alleged violations of
the AKS, FCA, and Stark law related to medical directorships with a medical center. Allegedly, the agreements were not in writing, the physicians were
paid more than fair market value for the services they rendered, and the payment amounts were based on the value of referrals the physicians sent to the
Two orthopedic surgeons paid $450,000 and $250,000 to settle allegations related to improper medical directorships with a company that operated a diagnostic imaging center, a rehabilitation facility, and an ambulatory surgery center. The company allegedly provided the physicians with valuable compensation, including free use of the corporate jet, under the medical directorship agreements, which required the physicians to render limited services in return. The agreements with the physicians allegedly called for redundant services and served to encourage the physicians to refer their patients to the facilities operated by the company