Community Discussion | Breach of a business contract with a physician

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Breach of a business contract with a physician - Now What

Posted by: Nicole Huff on October 29, 2009 at 11:41AM EST

Scenario

A physician is paid $30,000 a year to perform Medical Director duties related to the hospital's oncology department. The executed agreement indicates the physician will submit time logs documenting her specific duties performed on a monthly basis. The physician has been paid monthly without evidence of the time logs. In addition, the physician has been paid for the last two years under an expired agreement. A whistleblower contacts the OIG to report the breach in this contract and others. You are the CEO. You are anticipating paying civil and administrative penalties related to this specific breach. What is your corrective action plan to prevent this from occuring in the future?

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(8) Comments

Posted by: Bonnie Zimmerman on October 30, 2009 1:45PM EST

We have implemented an electronic contract tracking system that alerts us as termination dates approach, with sufficient time to renegotiate and/or renew agreements. We also have systems in place that require documentation, such as time logs, which must be in hand prior to releasing payment for services.

Posted by: Dave Engel on October 30, 2009 5:54PM EST

Having an electronic contract tracking system would be ideal. To help prevent this type of scenario from recurring the CEO needs to be kept abreast of practices and behaviors of those the institution contracts. Is there a line of communication between the multiple divisions to the CEO? If not, one needs created. Especially for those that are non-compliant.

Adverse behaviors generally occur as a direct result of an event. Communication with all contracted staff needs to occur at least annually if not more frequently to relieve any barriers that need resolved. At contract renewal time, it is good practice to review the agreement with the physician and make amendments as warranted.

Posted by: Paula Hafeman on October 30, 2009 10:45PM EST

We have the same systems in place as Bonnie but we also had an external auditor evaluate all of our contracts for compliance and that was very helpful.

Posted by: Laura Domino on November 1, 2009 10:36AM EST

I am very interested in the Electronic tracking system that Bonnie or Paula has in place. We are struggling with this now and have begun researching systems to implement. Would either of you share the system you have in place along with your impression of their strengths and weaknesses?

Posted by: Joseph Loring on November 2, 2009 12:06PM EST

The CEO would need to insure that a policy is in place concerning medical directorships that iclude formal job descritptions and a written procedure regarding the issuing of payments for these services. No check should be issued without the required submission of the medical directors monthly log listing duties that have been performed.

Posted by: Nicole Huff on November 2, 2009 1:20PM EST

Meditract is a good system to use for both contracts and conflict of interest disclosures. Here is the contact person who will be able to assist you with the Meditract program.
Amy R. Dollarhide

Vice President, Client Services

501-366-7797

adollarhide@tractmanager.com

Posted by: Gayathri Jith on November 4, 2009 10:54AM EST

We set up a contract tracking system as well as invoice with T&E sheets that must be submitted prior to paying any "automatic" payments for Medical Directorships.

Posted by: Zara Marselian on January 4, 2010 7:39PM EST

I would agree that whatever system is in place must require the supervisor to sign off on the timecards before a check request is processed. On another note, we are now finding it so cumbersome to manage all of our contracts and agreements. It would be great to have an electronic system manage all of them and when to renew and update.