Structuring Exclusive Contracts Between Hospitals and Physician Groups

Negotiating Exclusivity, Performance Standards, Payor Contracting, Restrictive Covenants and Other Key Provisions; Ensuring Stark Law, AKS and Tax-Exemption Compliance

Recording of a 90-minute CLE webinar with Q&A

Conducted on Wednesday, August 30, 2017

Recorded event now available

or call 1-800-926-7926
Program Materials

This CLE webinar will provide guidance to counsel involved in structuring exclusive contracts between hospitals and physicians or physician groups. The panel will discuss the nuts and bolts of structuring the agreements, including restrictive covenants, payor contracting provisions, performance standards, and exclusivity. The panel will also address strategies to overcome regulatory issues.


Hospitals and medical staffs both strive to provide consistently high quality care for patients. Alignment between the hospital and staff is essential to successfully meeting patient needs. One approach is to utilize exclusive contracts. Hospitals have historically had contracts with radiology, anesthesiology, pathology and ER groups to provide clinical services for those departments. Recently, however, the industry is seeing some expansion to other specialty.

Healthcare counsel, hospitals, physicians and physician groups must consider several factors when structuring exclusive contracts, including level of exclusivity, performance standards, payor contracting, compensation, and restrictive covenants. Further, careful structuring is required to navigate Stark Law, Anti-Kickback Statute, tax-exemption and other regulatory issues requires careful planning.

Listen as Ken Davis, partner with Katten Muchin Rosenman LLP, discusses the pros and cons of exclusive contracts with hospitals and the legal issues involved in these contracts between hospitals and individual physicians and/or physician groups. He will examine the basic provisions of the agreement and what provisions are negotiated over most. He will provide both the hospital and the physician/physician group perspectives.



  1. Exclusive contracts with hospitals—advantages and disadvantages, and why they are proliferating
  2. Stark Law, AKS and tax-exemption considerations
  3. Nuts and bolts
    1. Basic provisions
    2. "Clean sweep," and potential reporting-related implications
    3. Hot button isues the parties need to work through (i.e., what is negotiated over most and how to balance needs/expectations of hospital and physician group)
    4. A process to get the deal done
    5. Dialogues that often happen during negotiations


The panel will review these and other key issues:

  • What are the significant stumbling blocks that can hinder the parties in negotiating an exclusive contract?
  • What are the key considerations when determining whether to enter into an exclusive contact for the physician or physician group? For the hospital?
  • What steps should counsel take to ensure compliance with Stark Law and AKS?


Davis, W. Kenneth Jr.
W. Kenneth Davis, Jr.

Katten Muchin Rosenman

Mr. Davis counsels clients in the formation of new businesses, joint ventures, management and other service...  |  Read More

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