CCMS Medicine Spring 2017 - 19

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Once again, depending upon the terms of the Agreement,
there is no guarantee that the physician will be even employed
after the initial employment term. Even worse than that, I
have seen some onerous non-solicitation and non-competition
provisions which could be very damaging to the physician
if and when it is time to negotiate the "next contract." The
doctor's leverage may be severely compromised. The physician
may have to "leave town" if an acceptable new contract is not
attainable.
Words do matter. Clearly understanding what the
Institution is proposing is important. Crafting the language
to fit what the deal is becomes very important. Compensation
is one major area. Clearly defining it all, including guarantees
and incentives, is key. Be sure to compare "apples-to-apples."
Most doctors I know who have owned their own private
practices before becoming part of a larger institution, had
generous tax favorable perks (business expenses, retirement
plan benefits, insurance, etc.). One should look critically at
what the potential new employer is offering (being sure to
factor in the tax impact as part of that analysis). The term of
the arrangement also needs to be addressed. How easily may
the contract be terminated during the term? Does the contract
"expire" at some point or does it automatically renew?
Restrictive covenants also need to be critically evaluated.
Are there non-solicitation provisions? What are the
noncompetition provisions? When do they apply? What is
the Restricted Area? What is precluded? Are there exceptions?
What are the remedies if violated? There are also "nitty gritty"
items which many do not focus on. These include things
like work hours, call responsibilities, locations of work, with
whom call would be shared and paid time off. After clearly
understanding all of the proposal, one needs to compare it
to his/her goals and determine whether there are any "deal
breakers." Then negotiations may take place.
For many physicians, going with a model which provides
a doctor with more control over his/her destiny is a more
attractive way to go. The options are limitless. It is certainly
not a one size fits all situation. Pragmatic, economic, legal,
personality-based, and other factors should be considered. I
really enjoy advising physicians and helping them evaluate
which of the myriad of options best suits their needs and is
attainable.

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Vasilios J. Kalogredis, Esquire* Mr. Kalogredis has been advising physicians, dentists, and other health care
professionals and their businesses for over 40 years. He recently joined Lamb McErlane PC as Chairman of its Health
Law Department. More information is available at www.lambmcerlane.com. He may be contacted by email at
bkalogredis@lambmcerlane.com; by phone, 610-701-4402; or fax, 610-692-6210.

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Table of Contents for the Digital Edition of CCMS Medicine Spring 2017