These clauses, which are governed by state law, are typically enforceable as long as they are reasonable in time and geographic scope. A non-solicitation clause prohibits a mid-level provider from soliciting your patients, employees and independent contractors, among others, to leave your practice. They may also prohibit the mid-level provider from soliciting your referral sources. You may also consider including a general restriction that prohibits the extender from interfering with or disrupting any of your professional, contractual or business relationships.
Termination
Although the termination clause is often found at the end of the agreement, it is one of the most important provisions for both parties. Generally, employment agreements provide a way for either party to terminate the contract “without cause” by providing the other party with X days prior written notice. However, you may consider including a clause that gives the practice the option to pay the mid-level provider his or her salary in lieu of providing advance notice.
In addition to termination “without cause,” employment agreements will almost always provide a series of grounds upon which the parties can terminate the contract “with cause.” Here is a list of some of the grounds for which a practice can terminate the contract “with cause”:
- Reasonable determination that the mid-level’s patient care services create a substantial likelihood of injury or damage to patient health or are below the standard of care in the community.
- For any material failure to comply with a professional standard (e.g., federal and state laws and regulations, state medical board rules).
- Conviction of, plea of guilty to or plea of no contest to any felony or any crime involving moral turpitude.
- Exclusion from participation in a federal health care program (e.g., Medicare, Medicaid).
- Suspension, termination or revocation of the licensure and certification required to perform the professional services.
- Performance of duties under the influence of alcohol or illegal drugs.
- Any material breach of the agreement.
Steven M. Harris, Esq., is a nationally recognized health care attorney and a member of the law firm McDonald Hopkins, LLC. Steve may be reached at [email protected].
Originally published in ENT Today (2011;6(7):12). Reprinted with permission.
