When do physician recruitment arrangements affect a hospital's tax-exempt status?--revisited.

Physician recruitment incentives by hospitals continue to be popular in today's competitive health-care environment. A physician in private practice may also seek a hospital's assistance in recruiting a new colleague. In Conn Med 1989; 10:605-6, the authors discussed the prohibitions against private benefit and private inurement and their effect on recruitment packages. This article highlights new developments and Medicare/Medicaid fraud and abuse issues which may affect a tax-exempt hospital's status and, therefore, will dictate many of the terms of these packages.