contract questions

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TaoistDoc

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Hey Yall. I just got my first contract for a PP position and now that I am over the "holy ****, I actually found a job" phase I have a few questions.

1. The termination clause seems like it heavily favors the employer. I.E, they can fire you at any time if they find any cause that the deem reasonable where-as if I quit, I have to give 90 days notice, I assume this is the norm?

2. regarding the covenant not to compete. This is a relatively small group and although it seems stable, its also possible that an AMC could come in and buy it out. The question is, if an AMC buys out the group, can I still work at the same hospital for the AMC? I assume that if it buys out the group, it will buy the covenant as well so that it will not prevent me from working for the AMC.

3. The contract states that it will reimburse for malpractice insurance but doesnt specify how much coverage or tail coverage. should I as for them to specify this on the contract?

4. The compensation section states the yearly salary, but doesn't state how often I get paid. SHould I ask them to specify?

Thanks for yall help

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Hey Yall. I just got my first contract for a PP position and now that I am over the "holy ****, I actually found a job" phase I have a few questions.

First off you shouldn't be having a "holy ****" moment. There are plenty of jobs out there. Don't get emotional. That's when the fog of bad decisions begins to rears its ugly head.

1. The termination clause seems like it heavily favors the employer. I.E, they can fire you at any time if they find any cause that the deem reasonable where-as if I quit, I have to give 90 days notice, I assume this is the norm?

Your 90-day's notice clause is pretty standard. They should give you 90-days as well if they don't renew you and/or terminate you for whatever reason. Also try to get a clause in their that voids any non-compete clause if they choose to let you go.

2. regarding the covenant not to compete. This is a relatively small group and although it seems stable, its also possible that an AMC could come in and buy it out. The question is, if an AMC buys out the group, can I still work at the same hospital for the AMC? I assume that if it buys out the group, it will buy the covenant as well so that it will not prevent me from working for the AMC.

If an AMC buys your group, you will likely be offered a contract by the AMC to stay in the same arrangement. Make sure that this is clear in the non-assignable portion of the clause. Also, get them to commit to a clear partnership track within the offer letter or the contract itself. If you don't have a clear partnership track, seriously consider whether or not you should take this job.

3. The contract states that it will reimburse for malpractice insurance but doesnt specify how much coverage or tail coverage. should I as for them to specify this on the contract?

The biggest mistake I made was signing a contract where the group didn't agree to pay the tail when I leave. Depending on the arrangement, you should insist that they pay the tail. This is part of the handcuffs (often that don't have any gold in them) that practices use to keep you in a job that you hate. Especially if this is your first job, I can't underscore how important it is to be able to walk away without a huge financial burden if you absolutely hate the job and/or you find that it is a risky arrangement asking you to do things that you're not comfortable doing, etc. It is absolutely within your right to know this information and have a reasonable understanding of what this will entail if you leave before you sign the contract.

4. The compensation section states the yearly salary, but doesn't state how often I get paid. SHould I ask them to specify?

Absolutely.

Get a good lawyer that is used to reviewing employment contracts to look at this for you. Important parts are things like "liquidated damages" clauses (if yours even has one) and how long you'll have to stay before any repayments of signing bonues, relocation expenses, tail coverage, etc. are waived. These are the handcuffs they put on you to stay in a job. A 90-day termination clause is reasonable. Anything longer is not. If they make you stay years before any other incentives are waived, don't do it.

Fact is, you don't truly know what the job will be like until you walk in there day-1 and start working. Practices put on their best show when they interview. Try to find anyone who's left the group (for whatever reason) recently. If no one has, that's good sign.
 
Thanks Buzz!

Your insights are very helpful. I tell myself all the time to not get emotionally attached, but it is still pretty exciting. I will definitely try to get tail coverage, but I feel that even if I had to pay tail, it may still be worth it.

There is a clause in the contract about possibly becoming partner, but it doesn't say how long until you qualify etc.. My impression with the practice is that I will likely be an employee for the foreseeable future but that's fine with me because I dont feel there are good partnership track positions out there anymore for a fresh out of training non fellowship trained anesthesiologist. You either work for an AMC, a hospital, or group.
 
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Thanks Buzz!

Your insights are very helpful. I tell myself all the time to not get emotionally attached, but it is still pretty exciting. I will definitely try to get tail coverage, but I feel that even if I had to pay tail, it may still be worth it.

There is a clause in the contract about possibly becoming partner, but it doesn't say how long until you qualify etc.. My impression with the practice is that I will likely be an employee for the foreseeable future but that's fine with me because I dont feel there are good partnership track positions out there anymore for a fresh out of training non fellowship trained anesthesiologist. You either work for an AMC, a hospital, or group.

Just so I know that YOU know what you're talking about, how much do you think tail coverage will cost you?
 
From my research, probably 15k for 2 years coverage if I leave after 1 year. It progressively increases the longer I work. Prob 30-40k after 4 years.

BTW, is 2 years of tail coverage usually enough? Or do I need more?
 
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My impression with the practice is that I will likely be an employee for the foreseeable future but that's fine with me because I dont feel there are good partnership track positions out there anymore for a fresh out of training non fellowship trained anesthesiologist.

Please, please, please do not fall into this trap of thinking. If you take a job in a private practice arrangement where there are partners and non-partners with no defined partnership track, you will immediately feel like a second-class citizen in that practice. My advice to you is do not do it. Get them to commit to a partnership track or don't take the job. If every new grad did this, this would not even be a bull**** offer private practices would make. These greedy dinguses are trying to have their cake and eat it too.

And, there are still plenty of jobs out there still in private practice where you will get offered a partnership track. Why would you want to work for a group of (potentially) greedy dinguses who are scutting you around with no light at the end of the tunnel? I can tell you I was in that situation and everyone - everyone - who was in my shoes was f'ing miserable and unhappy.

There is an incredible power differential in a practice that employs you without giving you a clearly defined shot at being a partner. Essentially, they are telling you that they are willing to take your license and bill for your services without the promise of ever sharing the fruits of your labor. They are taking what you earn and paying themselves. That's fine while you're new and proving yourself, but being employed and never having the clearly defined track to being able to share in the pool of profit?

I'm telling you. Don't do it. Work for a hospital or AMC where your hours are defined and you act truly more like a corporate employee - and everyone is in the same boat - rather than someone who is at the whim of senior partners dangling some carrot in front of you. If you want to have "shifts" and be more like a CRNA, then work in an arrangement where that is "pure" and there's no agendas.

You either work for an AMC, a hospital, or group.

No offense, but obviously. See comments above.
 
From my research, probably 15k for 2 years coverage if I leave after 1 year. It progressively increases the longer I work. Prob 30-40k after 4 years.

BTW, is 2 years of tail coverage usually enough? Or do I need more?
Tail is typically not limited for a time after the coverage period ends.

If you had a claims-made policy in effect while you were working from, say, July 1 2009 through now, and you cancelled the policy today, and tomorrow or in 2015 or 2018 or 2025 someone sues you for a bad outcome that happened while you were insured in 2010 ... you're outta luck. The point of paying a tail premium is that any lawsuits filed any time in the future, for incidents that occurred during the original policy period, will be covered. A tail that's only good for 2 years isn't much of a tail.

A tail premium is usually a one-time payment of 2-3x your final year's premium. Last I asked, I was quoted 240% of my previous year's premium.
 
4. The compensation section states the yearly salary, but doesn't state how often I get paid. SHould I ask them to specify?

I would specify exactly what the compensation includes. This is relevant if there is a retirement plan that offers a match. If you contribute fully to a 401K for instance they will be responsible for matching.
 
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