In November, 2012, the American Medical Association adopted new guiding principles for physicians entering into employment and contractual arrangements. According to one AMA Board Member, “The Principles for Physician Employment provide a broad framework to help guide physicians and their employers as they collaborate to provide safe, high quality, and cost-effective patient care.”
Contributed by: Stacy C. Mikelonis
In November, 2012, the American Medical Association adopted new guiding principles for physicians entering into employment and contractual arrangements. According to one AMA Board Member, “The Principles for Physician Employment provide a broad framework to help guide physicians and their employers as they collaborate to provide safe, high quality, and cost-effective patient care.”
The potentially problematic aspects of the employer-employee relationship addressed by the principles include contracting, and the AMA advises, “Both parties are urged to obtain the advice of legal counsel experienced in physician employment matters when negotiating employment contracts.” The principles go on to specifically reference matters including performance-based compensation arrangements, custody of patient records upon termination, due process protections for the physician, dispute resolution and restrictive covenants.
The percentage of physicians willing to trade the autonomy of independent practice for the perceived benefits of employment continues to increase. Many physicians are drawn by the freedom from the complexities of running a practice and struggles with shrinking reimbursement amid increasing regulation,. According to data analyzed by the consulting firm Accenture, the percentage of physicians who own at least a part of their practices is expected to be only 36% in 2013; a decline from 57% in 2000.
The AMA press release and link to the principles can be found at: http://www.ama-assn.org/ama/pub/news/news/2012-11-13-ama-adopts-principles-physician-employment.page
