Mitigate Risk.
Strengthen Governance.

Independent fair market value (FMV) and commercial reasonableness assessments help health care organizations structure physician compensation with clarity, confidence, and regulatory defensibility.

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Doctor consulting with a patient.

When Compensation Risk Becomes Organizational Risk

Physician compensation arrangements sit at the intersection of strategy, regulation, and public scrutiny. Even well-intentioned financial relationships can create significant exposure if FMV and commercial reasonableness standards are not clearly documented, consistently applied, and defensible.

At the same time, organizations must remain competitive in recruiting and retaining physicians in a tight labor market—often while redesigning compensation models to support new care delivery strategies and evolving work effort expectations. Without objective analysis and disciplined oversight, compensation decisions can create unnecessary financial, operational, and reputational risk.

Physician Compensation Balancing Act

Scales representing balance and fairness

Partnering with SullivanCotter

Compensation Structures That Are Defensible By Design

SullivanCotter brings decades of health care-specific experience, market-leading physician compensation data, and deep regulatory insight to help organizations evaluate and structure physician financial relationships with confidence. Through independent FMV and commercial reasonableness assessments, we help leaders proactively mitigate risk related to Stark, Anti-Kickback, and IRS requirements.

Our work goes beyond issuing opinions. We partner with compliance, legal, finance, HR, and physician leadership to support consistent decision-making, strengthen internal governance processes, and ensure compensation structures are commercially sound, market-informed, and built to withstand scrutiny.

We review the following:

Arrangement Purposes

What is the business purpose of the arrangement?

Community Need

Timely Access

Licensure/Regulatory

Obligations

Charity Care

Clinical Quality

Network Adequacy

Compensation Arrangement Terms

Is the arrangement sensible?

Focused on the structure of the compensation arrangement

Contract terms compared to typical physician arrangement practice

Leader Compensation Arrangement Terms

If applicable:

Job description; bona fide need for leadership services

Not duplicative of other services

Time documentation or performance goals

On-Call Compensation Arrangement Terms

If applicable:

Regulatory/licensure obligation met

Call burden

Compensation when activated

How We Help

SullivanCotter provides independent reviews and advisory support to help organizations evaluate physician compensation arrangements and strengthen defensibility across the enterprise.

FMV and Commercial Reasonableness Reviews & Opinions (organization-wide and individual arrangements)

Value-Based Compensation Reviews

On-Call Pay and Telemedicine Reviews

Co-Management Valuations

Physician Compensation Leadership Reviews

Board and Leadership Education

FMV Training and Advisory Support

Compensation Governance Process and Committee Charter Development

Steps for improving organizational processes

Data That Supports Defensible Decisions

Explore SullivanCotter’s comprehensive survey data—including physician compensation and productivity benchmarks—to support FMV assessments, commercial reasonableness documentation, and compliant compensation design.

Physician Compensation and Productivity Survey

As health care organizations seek to optimize care delivery and improve performance, effectively managing workforce size, shape, and complexity remains key. This survey helps organizations understand how their workforce size, distribution, and cost compare to market practices.

Medical Group Compensation and Productivity Survey

As the largest medical group compensation dataset in the market, this survey offers a comprehensive look into pay practices and productivity across a wide spectrum of physician specialties.

Physician and APP On-Call Compensation Survey

This one-of-a-kind survey provides deep insight into on-call pay rates and practices.

Pulse on the Industry

Stay current with SullivanCotter’s latest insights on physician compensation compliance, evolving regulatory expectations, value-based care compensation trends, and governance practices that reduce risk.

Other Services To Explore

FMV and commercial reasonableness assessments are most effective when supported by strong compensation strategy and governance practices. Partner with SullivanCotter to strengthen internal capabilities in compensation planning, benchmarking, and workforce data management.

Let’s Architect Your Solution

Ready to ensure your physician compensation arrangements are defensible, compliant, and aligned with your organizational strategy? Contact SullivanCotter to put objective insight behind your most critical compensation decisions.

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