Notes About Employment Contracts

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Question or Topic

What are some of the things to decide before I contact my legal counsel to draft an employment agreement?  As an employee presented an employment agreement, what should I look for?  

 

The Answer

Below I have made some comments of points to ponder when drafting an employment contract.  Some of the comments are focused on the health care professional, however those are obvious and you and your legal counsel may decide to include some of the thoughts even for those not in the health care professions.   Warning   

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Startup - Entity Choices

 

 

Solutions are dependent upon facts & circumstances, law and the objectives.  These elements vary from one time to another, from one circumstance to another and from person or entity to another

My Name    

  1. Employment of physician

    1. Employer

    2. Employee

    3. Effective date

    4. Acceptance by both parties

    5. During term  physician devote best efforts and perform in a professional manner

    6. No professional medical services on patients other than LLC patients without prior written consent

  2. Physician representations

    1. Registered, in good standing, duly licensed under applicable state laws

    2. Membership  on the Medical Staff of agreed upon institution

    3. Has current controlled substances registrations by the state which registrations have not been surrendered, suspended, revoked or restricted in any manner

    4. Has disclosed and will at all times during the term of the Agreement promptly disclose to the LLC:

      1. Legal, regulatory or other proceeding against physician, etc.

    5. Board certified in LLC service area

    6. Physician shall render services to patients in a competent, professional and ethical manner

    7. Shall use the equipment, instruments and supplies for which they are intended

    8. Complete and maintain in a timely manner adequate, legible and proper medical records, claims and correspondence

    9. Participate in Medicare, Medicaid, Civilian Health and Medical Program of the Uniformed Services (CHAMPUS) other federal and state reimbursement programs and commercial insurance reimbursement programs HMO, PPO or other programs as determined by the LLC

    10. Abide by the Article of Organization and Regulations or Operating Agreement

    11. Physician shall participate in CME and maintain skills

    12. Physical shall satisfy all qualifications of insurability of professional liability policies

    13. Physician shall furnish proof of insurance upon request

  3. Physician Responsibilities

    1. Professional duties

      1. Full-time professional coverage of patients - on a continuous basis 24 hours per day, 7 days per week, 52 weeks per year.

      2. Physician shall visit other health care providers locally and in nearby towns on a routine basis to be set by the LLC

      3. The LLC shall neither have nor exercise control or direction over the specific methods by which physician performs services

      4. Physician shall submit to LLC time or other format of records as the LLC may require from time to time showing nature of services

      5. Physician Shall refer all MRI, CT Scan, or other medical imaging to Dr ___________________.

    2. Administrative Duties

      1. Physician shall perform administrative duties determined by the LLC to be reasonable and necessary

      2. Health Care Mission

      3. Patient Care Protocols

      4. Reports

      5. Quality improvement

      6. Medical Records

      7. Forms

      8. Supervision of non-medical personnel

      9. Compliance - Managed Care

      10. Service on LLC committees

      11. Strategic planning

      12. Application of standards

      13. Patients of LLC

      14. Billing

      15. Right to Payments

      16. Collections

      17. Accounts receivable

      18. Physician's contracts or agreements

      19. Patient Records

      20. Authority of Physician

      21. Conflicts in financial interests or relationships

      22. Outside activities

      23. Professional Liability Insurance

      24. _____________________

    3. ___________________

  4. LLC Duties and Authority

    1. Facilities - ownership, purchase, repayment, recovery by LLC of  startup costs

      1. Real property

      2. Equipment

      3. Rented real estate

      4. Rented personal property

    2. Equipment

    3. Services

    4. Personnel

    5. Indemnification

    6. Physician rights subsequent to sale or merger

  5. Working conditions

    1. Compensation, 

      1. Amount, when paid

      2. Bonuses

      3. Incentive Bonuses

      4. Compensation during illness

      5. Withholding

    2. benefits

      1. Life insurance

      2. Health insurance

      3. Disability insurance

      4. Pension, profit sharing, 401K

      5. Cafeteria Plans

      6. Long term care 

    3. Working hours

    4. Time off - vacation, holidays, leave of absence, sabbatical

  6. Termination

  7. Termination with or without cause

    1. Form of notice and time for correction

    2. Circumstances for immediate termination, cancellation of all benefits and forfeiture of any rights of the physician within this agreement

      1. Arrest for felony

      2. Conviction of felony

      3. Plea of guilty or no contest to a felony charge

      4. Bringing weapons on the premises of the LLC

      5. Testing positive of drugs, controlled substance, hallucinatory chemicals or mood altering chemicals if not under the direction of an independent physician

      6. DUI

      7. Conviction or publicity of sex offenses

      8. Sexual harassment

      9. Threats to the life or performing life threatening acts on the premises of the LLC

      10. Suspension, termination or non-renewal of physician's membership in good standing on the Medical Staff or admonishment from the State Board of a Class _____ event for medical services.

      11. Physician's death, disability or incapacity.

      12. Revocation, suspension or limitation of physician's license in any state.

      13. Limitation, suspension, or revocation of physician's right to prescribe controlled substances.

      14. Physician's violation of rules or regulations and policies or procedures of the LLC

      15. Physician's inability to practice medicine with reasonable skill and safety by reason of use of alcohol, drugs, chemicals or any other type of material

      16. Physician's inability to work with and relate to others including patients, or staff

      17. Resignation of physician must be in writing and must be 180 days advance notice.  LLC may terminate this agreement with 180 days advance notice in writing.

      18. Effect of expiration or termination upon accounts receivable.

      19. Termination remedy does not replace other rights or remedies under state law.

  8. Expense accounts

    1. Dues

    2. Travel

    3. Local Transportation

    4. Moving

    5. Accountable Plan

  9. Disallowance by IRS

  10. Relationship with employee

    1. __________________

  11. Buy-In provisions

    1. Amount

    2. Timing

    3. Valuations

    4. Repurchase by LLC

  12. Term and termination

  13. Non-competition, confidentiality and no solicitation

    1. Non-competition

      1. Time period

      2. Geographic area

      3. Remedy for LLC if physician violates this clause

    2. Confidentiality

    3. No solicitation

    4. Referrals to _______________

    5. No interference with LLC personnel

    6. Reasonableness

    7. Remedies

  14. Recovery of startup expenses

  15. LLC's Waiver of any breach

  16. Misc

    1. Receipt of copies of documents referred to herein

    2. Notices

    3. Amendments

    4. Assignment

    5. Headings

    6. Governing law

    7. Entire agreement

    8. Waiver of breach

    9. Additional assurances

    10. Severability

    11. Gender, number

    12. References

    13. Binding effect

    14. Access to Government records

  17. Witness, Jurat, etc.

 

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