2. KIRK DOAN –
HEALTH LAW EXPERIENCE
General Counsel -- Metropolitan Medical Society of
Greater Kansas City
Board Member -- Missouri Medical Political Action
Committee
Member -- Metropolitan Medical Society Alliance --
Legislative Liaison
Member -- State Government Relations Committee --
Metropolitan Medical Society
Partner -- Health Care Practice Group of Stinson
Leonard Street LLP
President, KC Society of Healthcare Attorneys
3. PHYSICIAN EMPLOYMENT
AGREEMENTS
Introduction
o Hospital employed physician
o Private group employed physician
o PC/LLC owner/employed physician
Contract issues to be addressed
Relationship to other agreements
o Revenue guaranty agreement
o Shareholder agreement
4. CORPORATE FORMALITIES
Who is the employer
Has contract been authorized
Who signs for the employer
Is the employer a substantial entity
Fee splitting
Corporate practice of medicine
5. PHYSICIAN QUALIFICATIONS
What licenses and privileges are required
When must they be obtained
When do you start and risk of delay
Medicare exclusion or suspension
Effect of staff membership on covenant
Board eligibility or certification
Managed care/insurance agreements
6. TERM OF THE AGREEMENT
Date legally binding and start date
Evergreen provision for renewal
Escalators and passage of time
Termination versus expiration
Locum Tenens as damages
Partnership consideration timeline
Terms of buyout - Shareholders’ agreement
7. PRACTICE LOCATION
Where will you work and reassignment
Effect on family
Effect on covenant not to compete
Is your consent required
8. WHAT EARNINGS BELONG
TO THE GROUP
Honorariums and consulting
Inventions and books
Moonlighting
Hospital staff positions
Call payments
9. PATIENT ASSIGNMENT
Effect on compensation and bonus
Equitable allocation of new patients
Helps to build your practice
11. INCORPORATED POLICIES AND
PROCEDURES
Employee handbook
Employer rules and regulations
Hospital rules and regulations
Medical staff by-laws
Request copies or password to website
12. MEDICAL RECORDS
Timely preparation
Copies for your administrative, regulatory
or litigation purposes
HIPAA -- business associate rules
Record retention and access
Ownership of records
13. SPECIAL EQUIPMENT
Cellphone, pager, PDA, dictation
Revenue generating equipment
Automobiles
Computers and EMR
Ancillary staff -- duty to consult
Physician extenders and collaborative
practice agreements
Special equipment for practice
14. COMPENSATION
Formula or set amount
Guarantee and/or Bonus
Audit rights
Realistic - MGMA Data, WRVU analysis
Forfeiture of bonus on early departure
Stark II caps on total compensation
C-Corp dividend vs. compensation issue
15. REVENUE GUARANTY AGREEMENT
Between hospital and
recruit/group
Indemnification by groups
1099 income
Termination for cause
Terms of payback
Stipends during residency
16. MALPRACTICE INSURANCE
Amount
Who pays for the tail, conditions to
payment
Evidence of prior coverage or nose
coverage
Moonlighting
Extra-ordinary premiums
Indemnify for harassment, etc.
17. FRINGE BENEFITS
Copies of all plan
descriptions
Effect of vesting schedule
COBRA rights
Publications
Medical Staff dues
Society dues
18. VACATION AND CME
Amount
CME count against
vacation
Vacation -- use it or
loose it?
CME allowance
Sick leave
19. SIGNING BONUS, MOVING
EXPENSES, ETC.
Signing bonus
Moving expenses
House hunting trips
Recruiting fee
Repayment obligations
Loans and stipends
If loan, 1099 income upon forgiveness
20. FOR-CAUSE/NOT-FOR-CAUSE
TERMINATION
Definition
Objective criteria and right to cure
Effect on pay and benefits
Effect on malpractice tail or competition
covenants
Notice period for not-for-cause
Liquidated damages for training expenses
Automatic termination of hospital privileges
Arbitration
21. COVENANT NOT TO COMPETE
Radius
Duration
Ownership
Enforceability
Relation to hospital,
clinic locations
J-1 Visa Waivers
Part of practice
purchase
Consideration
Buy-out formulas
Liquidated
damages