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Exempt hospital (EH) currently pays Dr. Brady, an independent staff physician who serves as its Department Chair of Oncology (with responsibility for hiring staff, supervising

Exempt hospital (EH) currently pays Dr. Brady, an independent staff physician who serves as its Department Chair of Oncology (with responsibility for hiring staff, supervising credentialing, handling administrative duties of the hospital and participating in budgetary matters for the Oncology department) a sum of $1,000 per month. Dr. Brady has requested a new compensation arrangement pursuant to which EH would pay him an additional $2,000 per month. The EH Board approved this arrangement after a short briefing from its CEO who stressed that EH would have to shut down its oncology department if they didn't agree to Dr. Brady's demand. A concerned board member comes to you and asks if this arrangement poses any problems

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