- 22 -
to 60 percent for the first $800,000 of "risk pool revenue",16
with a 55 percent17 share of amounts above $800,000. SWMG agreed
to compensate its physician members, including petitioners, from
the foregoing share of revenues. In addition, the PSA provided a
guaranty, or floor, on the annual compensation that SWMG (and
through SWMG, its member physicians) would receive, generally
equal to 98 percent of the total designated annual compensation
amounts for SWMG's member physicians. (The designated annual
compensation amounts were set individually for each member, and
ranged (for full-time practitioners) from a high of $348,859 for
petitioner Elise R. Smith-Hoefer to a low of $110,076 for
petitioner James W. Eusebio.) Finally, the PSA provided for the
payment of a "Physician Access Bonus" described as follows: "A
critical element necessary to maintain an integrated health
system is physician access. To provide an incentive to SWMG to
form and sustain a group, SMF will pay SWMG a Physician Access
Bonus." The PSA nowhere provided, or required that the
employment agreement between SWMG and each SWMG physician
provide, that SWMG physicians maintain "open" practices; i.e.,
accept new patients notwithstanding existing patient loads.
Provisions governing the assignment of patients to SWMG
16 The record does not define "risk pool revenue".
17 As with capitation revenues, the share of risk pool
revenues noted above was the product of a subsequent amendment,
having been initially set at a flat 50 percent.
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