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Contract Review

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  • Avatar Radonlake 
    Participant
    Status: Physician
    Posts: 22
    Joined: 01/24/2019

    Small group rads here. I decided not to do a formal contract review – I think it is wasted money and wasted effort and excitement. The groups/contracts I considered had 0 room for negotiation in regards to the contract. All partners had signed the exact contract – why would they change anything for me or any partner, and now that I am a partner would I hire anyone who wants to change a contract we all go by? And even compensation, they showed good evidence that compensation during partnership tract was the same for everyone – and they were transparent about how things get split up as partners – so what would I negotiate, get more than my partners???

    I had one of my lawyer friends read over it to avoid any big pitfalls or crazy stuff. Almost all my colleagues who left groups because it did not work out had their contracts checked. It is not the contract that gets you in trouble, it is the culture of a group. I truly believe, they can achieve anything they want with or against any contract.

    #215164 Reply
    Liked by Tim, Vagabond MD
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 2320
    Joined: 09/18/2018

    There is one particular advantage that is essential and may not result in one change in money or even one word: Education. Each paragraph, word and sentence is there for a reason. Of course every physician is smart and can learn if needed. Unfortunately, contracts often refer to other legal documents. Malpractice, healthcare and conduct and obligations on the part of the physician and the group. If getting a review, make sure every concept and sentence is understood and interpreted correctly. When in doubt, get the attorney to educate you. If something seems to be missing, ask.
    Example, no non-compete? The answer was “If you don’t want to be here, we have zero interest restricting your options. Notice is our only request.” Further, if something arises they would consider waiving notice.

    #215251 Reply
    Avatar MSooner 
    Participant
    Status: Spouse
    Posts: 181
    Joined: 02/25/2016

    Question about tail coverage—

    My husband has been moonlighting in residency via program sanctioned opportunities. Malpractice coverage is through the hospital system. Is this something that we potentially need to worry about tail coverage for going forward?

    #216346 Reply
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 2320
    Joined: 09/18/2018

    Residency malpractice usually covers based upon when occurred. When you say “through the hospital system “, you know it will depend on the contract. Most likely he is covered. Easiest would be for him to ask.

    #216364 Reply
    Liked by MSooner
    Avatar MSooner 
    Participant
    Status: Spouse
    Posts: 181
    Joined: 02/25/2016

    I think we are going to end up with a legal review. The estimate was ~$1000, but we’re out of our depth with some parts of one contract he received–specifically the indemnification and non-compete clauses. We’re not necessarily expecting anything to change, but feel like we need to have a hard understanding of it before signing anything.

     

    #220035 Reply

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