BUSINESSRecruited doctors can negotiate contractsContract Language. By Steven M. Harris, amednews contributor. Oct. 1, 2001. Last month this column discussed the basics of physician recruitment agreements, and now I will conclude this discussion by paying particular attention to a few negotiating tips for physicians about to enter into such a relationship with a hospital. Most often, the recruited physician and the group practice that is conducting the search will each be asked to guarantee the income provided by the hospital. The hospital will provide the income in the form of a loan to the practice. Most hospitals require the physician and the group practice, jointly and severally, to assume liability for repayment to the extent that funds advanced by the hospital remain unpaid after the forgiveness period, if provided within the structure of the transaction. Although both the physician and practice are liable, each would be well served by an intercreditor agreement between themselves for purposes of apportioning risk of repayment. For example, if the practice exercises its ability to terminate the recruited physician during the initial employment period without cause, perhaps the practice should bear the risk and cost of repayment. Likewise, if the recruited physician singly walks away and joins a new group in the same area, it seems equitable that the physician jumping ship should bear the obligation of debt repayment. Doctors executing recruiting agreements are well-advised to refrain from signing agreements with a group practice which contain post-employment restrictive covenants.
[...]
Full text of American Medical News content is available to AMA members and paid subscribers.
Copyright 2001 American Medical Association. All rights reserved.
|
The doctors are in the house
The AMA's House of Delegates is holding its Interim Meeting Nov. 7-10 in Houston, addressing issues such as health system reform and physician payment. Meeting coverage - Slideshow Feature articlesHealth reform review The Massachusetts experience Litigation stress Being sued is personal as well as professional Comprehensive coverage
Most-viewed
Nov. 9 issueHouse option for public plan wouldn't limit physician pay to Medicare rates New database for out-of-network pay set to replace disputed Ingenix system Columns and series
From the vault: 5 years agoGenetic testing issues land in primary care practices Nov. 8, 2004 
|
SHARE
