NEGOTIATING YOUREMPLOYMENT CONTRACT

By: Vasilios J. Kalogredis, J.D., CHBCKalogredis, Sansweet, Dearden and Burke, Ltd.

Wayne, Pennsylvania610-687-8314

BKalogredis@KSDBHealthlaw.com

EMPLOYMENT CONTRACTS FOR ASSOCIATESHIP WITH PRACTICE

A. Contract for Associateship With Practice - Form of Contract. Often an informal, but legally-binding,

letter-Agreement.

B. Timing of Written Contract. Should follow shortly after or accompany offer.

C. Term of Employment Agreement.

D. Statement of Intention as to “Partnership Potential”. (if any)

E. Termination Provisions.

G. Compensation.

H. Paid Practice Expenses.

1. Malpractice - generally paid for by practice.

(a) Claims-made versus occurrence coverage.

(b) Unused portion.

(c) “Tail.”

(d) MCARE Abatement

2. Other Expenses - may be paid for in part or in full and include:

(a) Professional Society Dues;

(b) Hospital Staff Fees;

(c) Professional Education and Travel Expenses;

(d) Moving Expenses;

(e) Expenses for Business-Related Use of Car, Phone and Beeper;

(f) Entertainment Expenses.

3. Tax Ramifications.

.

I. Fringe Benefits.

1. Retirement Plan

2. Medical and Major Medical Insurance

3. Life Insurance

4. Disability Insurance

5. Medical Expense Reimbursement Plan

J. Vacation and Meeting Absences.

K. Illness and Disability Absences.

L. Restrictive Covenants.

1. May be enforceable if reasonable in time and geographical “space.”

2. If not signed prior to first day of work, may not be enforceable without additional consideration.

3. Injunction versus money damages.

M. Non-Solicitation.

EMPLOYMENT CONTRACTS WITH LARGE EMPLOYERS

A. Large Employers. Includes hospitals, health systems, PPMCs and HMOs.

B. Contract With Large Employer - Form of Contract. Usually a formal Agreement.

C. General Employment Contract Issues. Many contract provisions, issues and concerns are similar to those described in previous section.

D. Issues Unique to Large Employer Relationship

1. Restrictive Covenant.

(a) Should it apply if you terminate for cause?

(b) Should it apply if employer terminates not for cause?

(c) Should it apply if employer does not renew at the end of the term, or if employer renews but not for a comparable compensation package?

2. Physical Work Locations.

(a) Contract should state where you are expected to work.

(b) Can employer make you work at different physical locations (i.e., different office locations(s), hospital, van)?

(c) Who decides?

3. On-Call Responsibility: Contract should be specific.

4. Term and Termination.

Surround Yourself With Good and Experienced Advisors

1. Accountant.

2. Consultant.

3. Attorney.

4. Financial Planner.

(a) Investments

(b) Insurance

5. Banker.

6. How do you find what you are looking for?

7. Check references.