Alabama Provisions as to Compensation for Medical Director's Contract with Health Care Agency

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A compensation package is the combination of salary and fringe benefits an employer provides to an employee. When evaluating competing job offers, a job-seeker should consider the total package and not just salary.


There is almost an unlimited number of potential benefits packages offered by employers. Some employers offer them at the employee's expense, some pay all of the costs, some pay part of the costs. Benefits include such things as vacation days, sick days, personal days, paid company holidays, pension plans, stock ownership plans, health insurance, dental/eye insurance, life insurance, and more.


This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.

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FAQ

Is it possible to be both an officer and an independent contractor? Not likely. The overwhelming majority of people who work as officers of a corporation or an LLC are deemed to be employees under the law.

Medical Director Agreements can be structured as independent contractor relationships where, for example, a hospital contracts with an independent member of its medical staff (often on a less than full-time basis) to perform certain specialty/service line administrative leadership functions.

Wage & Hour LawIndependent contractors are not considered employees under the Fair Labor Standards Act and therefore are not covered by its wage and hour provisions. Generally, an independent contractor's wages are set pursuant to his or her contract with the employer.

Capitation is a fixed amount of money per patient per unit of time paid in advance to the physician for the delivery of health care services.

The medical director organizes and coordinates physician services and services provided by other professionals as they relate to patient care. The medical director participates in the process to ensure the appropriateness and quality of medical care and medically related care.

The Bureau of Health Provider Standards is the State of Alabama's regulatory agency responsible for licensing and/or certifying health care facilities.

A fixed amount ($20, for example) you pay for a covered health care service after you've paid your deductible. Let's say your health insurance plan's allowable cost for a doctor's office visit is $100. Your copayment for a doctor visit is $20.

Directors and officers who are paid by a nonprofit must be classified for payroll and other tax purposes. They can either be employees or independent contractors. The nonprofit must withhold and pay payroll taxes to the IRS for employees. There is no such requirement for independent contractors.

Medical director contracts should include detailed descriptions of what exactly is expected of the medical director, the hours and days he or she is expected to work, the documentation requirements of the practice, on-call hours, and the administrative tasks the medical director will be expected to do.

A capitation payment is a monthly payment to a healthcare provider, based only on the number of patients that the provider commits to serve. Capitation payments are on a flat-fee basis, meaning they do not account for the specific needs of any one patient or the number of times the provider sees them.

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Alabama Provisions as to Compensation for Medical Director's Contract with Health Care Agency