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Don't snooze through sleep clinic proposal

Contract Language. By Steven M. Harris, AMNews contributor. April 14, 2003.


The increasing number of hospital-based and freestanding sleep disorder centers has caused many doctors to consider becoming involved in this area of medicine, particularly as medical director of a center.

In addition to the compensation and related responsibilities that will probably be key negotiation points, there are several other issues you should consider prior to executing a contract to become a medical director of a sleep disorder center. These key provisions include the subjects of private practice, independent contractor status, clarifications to law, and accreditation issues.

Make sure your contract contains a provision enabling you to continue your private practice separate from the sleep disorder center, and that such a practice will not be considered to be competing with the center.

The issue as to whether physicians as medical directors are independent contractors or employees for federal income tax purposes has been addressed by the Justice Dept.'s Tax Division and continues to be the source of litigation in several jurisdictions. Inclusion of an independent contractor provision within your contract will help to clarify, but not ensure, your relationship with the entity that owns and operates the center.

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