Category Archives: Physicians’ Contracts and Restrictive Covenants

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UPMC/Washington Health System Merger Agreement Limits Non-Competes

The Press has announced that the Merger Agreement between UPMC and Washington Health System was approved by the Pennsylvania Attorney General with certain conditions, one of which was that UPMC would honor existing employment contracts and not impose restrictive covenants or non-compete agreements more restrictive than those that currently exist. We will be researching that … Continue Reading

COVID-19 and Physician WRVU Productivity

A vast majority of current physician employment contracts, both with larger systems and in individual practice, have some sort of productivity component for compensation, dependent upon the production of: WRVUs (Work Relative Value Unit) Collections Net Profits Even if there are no negotiated “resource” provisions, most contracts also have what was always thought to be … Continue Reading

COVID-19 Physician Private Practice Guidance

I. Introduction. The COVID-19 pandemic presents all physicians, but especially private practice physicians, with numerous clinical, liability and business challenges. We have chosen the following categories to organize and present recommended guidance and linked resources for your information: 1. Clinical Guidance 2. Malpractice Liability 3. Reimbursement 4. Employer/Workers Compensation 5. Telehealth II. Clinical Guidance. Many … Continue Reading

2018 National Practitioner Data Bank Guidebook

In October 2018, the National Practitioner Data Bank (NPDB) published the third edition of the NPDB Guidebook. NPDB publishes monthly “NPDB insights”.  I could not send the link to that, but I have attached a copy of the page announcing the new Guidebook here:  NPDB Insights. I am also attaching a link to the Guidebook.  https://www.npdb.hrsa.gov/resources/aboutGuidebooks.jsp … Continue Reading

BASIC CONTRACT ISSUES FOR NEW PHYSICIAN CONTRACTS

INTRODUCTION When physicians have finally completed the medical education journey, many are confronted with a “physician employment contract,” usually from a hospital or medical practice, which could define the essential terms of their professional relationship for many years to come.  If the parties live happily ever after, neither may ever read the contract again.  However, … Continue Reading

Basic Contract Issues for New Physician Contracts

INTRODUCTION When physicians have finally completed the medical education journey, many are confronted with a “physician employment contract,” usually from a hospital or medical practice, which could define the essential terms of their professional relationship for many years to come.  If the parties live happily ever after, neither may ever read the contract again.  However, … Continue Reading

10 Significant Physician Contracting Mistakes

1.          Failure to Begin with the End in Mind. The most important provisions of your employment contract will be the provisions governing your termination rights, for two reasons. First, if the relationship goes well, chances are the contract will never be read again. However, if there is a dispute, both parties will be reading the contract looking for … Continue Reading

Hospital Recovers Income Guarantee Payments from Suspended Physician

It should come as no surprise there are cases in which hospitals seek to and actually do recover income guarantee payments made to physicians whom, either through termination of employment or loss of hospital privileges, fail to fulfill the repayment requirements existing in most of those contractual arrangements. They typical hospital guarantee arrangement provides advances … Continue Reading

Practical considerations to protect against being ‘out of network’

Practical considerations to protect against being ‘out of network’ The disengagement of Highmark and UPMC is looming on the horizon; most of the hospital participation agreements between these two competing healthcare systems end on December 31, 2014.  There are some hospital agreements that continue, such as those at Children’s and Magee, but the focus of … Continue Reading

AMA Adopts Principles for Physician Employment

n 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."… Continue Reading

10 Significant Physician Contracting Mistakes

1.          Failure to Begin with the End in Mind. The most important provisions of your employment contract will be the provisions governing your termination rights, for two reasons. First, if the relationship goes well, chances are the contract will never be read again. However, if there is a dispute, both parties will be reading the contract looking for … Continue Reading

Basic Contract Issues for New Physician Contracts

  INTRODUCTION When physicians have finally completed the medical education journey, many are confronted with a “physician employment contract,” usually from a hospital or medical practice, which could define the essential terms of their professional relationship for many years to come. If the parties live happily ever after, neither may ever read the contract again. However, if … Continue Reading

Physician Contract Issues

PHYSICIAN CONTRACTS & ISSUES INTRODUCTION The structure, purpose and terms of every physician contract are different. The content and style vary with the institutional or private practice nature of the employer and the needs and leverage of the physician.  Following is a list identifying major issues or components. I.          COMPENSATION 1.         Base Compensation. A.         Fair market value … Continue Reading

Orlando Sentinel Reports Hospitals Employing More Physicians

ORLANDO SENTINEL REPORTS HOSPITALS HIRING MORE PHYSICIANS The Orlando Sentinel  published a recent article indicating that hospitals are increasing their direct employment of physicians, citing statistics from national physician recruiters about the increase in recruiting arrangements, and opining that one of the biggest reasons for this national trend is that “physicians are sick of the … Continue Reading

Pursuing Physician Disabilty Claims

PHYSICIAN DISABILITY CLAIMS Physicians are facing increasing opposition from disability insurance carriers regarding claims for “own occupation” disability policies. This scrutiny and opposition is a predictable reaction to the expensive claims, which typically have long payouts including COLA and life-time riders, and the fact that the degree of disability or physical impairment necessary to substantially impede … Continue Reading

Planning Your Return to Private Practice

As published in the September 2007 edition of Bulletin, a publication created by the AlleghenyCounty Medical Society. While medical practice acquisitions continue, some physicians and practices are returning to private practice. These returns are sometimes driven by regional strategies, specialty strategies, or just individual decisions made on a physician-to-physician basis, some voluntary and some involuntary. Although returning … Continue Reading

Physican Cases: Antitrust, Restrictive Covenant & Credentialing

RESTRICTIVE COVENANT UNENFORCEABLE BY SURVIVING SPOUSE  The Virginia Supreme Court ruled that a medical practice corporation, ownership of which had transferred from the deceased sole physician shareholder to his spouse and which was converted to a business corporation by state law, could not enforce a restrictive covenant because it could not practice medicine and had … Continue Reading

Basic Physician Contract Issues for Residents and Fellows

When physicians have finally completed the medical education journey, many are confronted with a "physician employment contract," usually from a hospital or medical practice, which could define the essential terms of their professional relationship for many years to come. If the parties live happily ever after, neither may ever read the contract again. However, if a problem arises, the scramble to find and read the contract begins.… Continue Reading
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