Financial pressures to increase productivity have led health centers to establish incentive compensation programs. This information bulletin 1) describes rules under federal income tax exemption law for several common types of provider arrangements, 2) explains federal cost principles related to paying for provider incentives, and 3) clarifies limitations on incentive compensation arrangements imposed by federal fraud and abuse statues.
Important MyNACHC Content Note: This technical assistance resource was developed prior to the August 2017 release of the Health Center Compliance Manual by the Health Resources and Services Administration’s (HRSA) Bureau of Primary Health Care (BPHC). The BPHC Compliance Manual, issued August 2017, indicates where PINS, PALs and other program guidance are now superseded or subsumed by the BPHC Compliance Manual. See https://bphc.hrsa.gov/programrequirements/pdf/healthcentercompliancemanual.pdf