NEGOTIATING EMPLOYMENT CONTRACTS: DOS AND DONTS

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NEGOTIATING EMPLOYMENT CONTRACTS DOS AND DONTS

• Bruce D. Armon, Esq.
• Business Department
• Telephone [phone], ext. 7985
• [phone]
• Email barmon_at_saul.com
• Saul Ewing LLP
• May 11, 2005

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HEALTH LAW SUBJECTS

• Regulation of health care providers
• Credentialing of health care providers
• Reimbursement issues
• Fraud and abuse
• Antitrust
• Tort law
• Each impacts your employment agreement

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DECIDING WHERE TO PRACTICE

• Institutional
• Private practice

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EVALUATING A PRACTICE OPPORTUNITY

• Developing your checklist
• Identify priorities
• Determine deal-breakers

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THE FIRST INTERVIEW

• Establishing a rapport
• Identifying the nuts and bolts of the
  practice
• Asking the right questions

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THE PRACTICES PERSPECTIVE

• Potential Partnership?
• Associate for life?

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THE MAJOR ISSUES

• Compensation -- not just salary!
• Term and termination
• Be aware of the Agreements details

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COMPENSATION

• Possible salary formulas
• Base salary
• Base salary PLUS production or collections
• Production less overhead

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SOURCES OF PRACTICE REVENUES
Source Physician Socioeconomic Statistics
1999-2000 Edition Center for Health Policy
Research, American Medical Association
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Anesthesia Salary Survey Statistics by Years in
Specialty (Median Salary)
Source Medical Group Management Association,
Physician Compensation Production Survey, 2004
11
Cardiology Salary Survey Statistics by Years in
Specialty (Median Salary)
Source Medical Group Management Association,
Physician Compensation Production Survey, 2004
12
Emergency Medicine Salary Survey Statistics by
Years in Practice (Median Salary)
Source Medical Group Management Association,
Physician Compensation Production Survey, 2004
13
General Surgery Salary Survey Statistics by Years
in Practice (Median Salary)
Source Medical Group Management Association,
Physician Compensation Production Survey, 2004
14
Internal Medicine Salary Survey Statistics by
Years in Practice (Median Salary)
Source Medical Group Management Association,
Physician Compensation Production Survey, 2004
15
OB/GYN Salary Survey Statistics by Years in
Specialty (Median Salary)
Source Medical Group Management Association,
Physician Compensation Production Survey,
2004 There is no information available for 1-2
Years
16
Orthopedic Surgery Salary Survey Statistics by
Years in Specialty (Median Salary)
Source Medical Group Management Association,
Physician Compensation Production Survey, 2004
17
Pediatric Salary Survey Statistics by Years in
Practice (Median Salary)
Source Medical Group Management Association,
Physician Compensation Production Survey, 2004
18
Psychiatry Salary Survey Statistics by Years in
Practice (Median Salary)
Source Medical Group Management Association,
Physician Compensation Production Survey, 2004
19
Radiology Salary Survey Statistics by Years In
Specialty (Median Salary)
Source Medical Group Management Association,
Physician Compensation Production Survey, 2004
20
Urology Salary Survey Statistics by Years in
Specialty (Median Salary)
Source Medical Group Management Association,
Physician Compensation Production Survey, 2004
21
Internal Medicine Salary Survey Statistics By
Percent of Capitation (75th Percentile)
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What level of compensation do you anticipate
achieving in your first professional practice?
Source Merritt, Hawkins Associates 2003
2003 Survey of Final-Year Medical Residents
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NON-SALARY BENEFITS

• Salary is only part of the equation
• Ascertain employers potential flexibility

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TERM AND TERMINATION

• Term
• How long is the initial term?
• Automatic renewals and notice provisions

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TERM AND TERMINATION

• Termination
• For cause
• Without cause
• Timelines for termination
• Effects on benefits

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THE AGREEMENTS DETAILS

• Conditions precedent
• Constant considerations
• Conditions subsequent

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MOVING ON

• Non-competition provisions
• Access to patient records and confidentiality
• Settling disputes -- arbitration or litigation?

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SYNOPSIS FOR NEGOTIATING EMPLOYMENT AGREEMENTS

• Dont rely on a handshake
• The devil is in the details
• Dont be afraid to ask for changes
• Enjoy your first professional practice
  opportunity!