+/- Hospital Contract?

[CaliCatheter]

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Hey all

My group is discussing whether or not to contract with hospital. I'm one of the newer guys and want to be more involved and wanted to see what the pros and cons were of contracting.

The major ones I can think of
Pros: potential stipend $$$
Job security for duration of contract

Cons: step closer to employment status
Beholden to admin

Anything I'm missing? Thanks in advance.

 

[deleted162650]

Are you located in CA as your name suggests?

 

[CaliCatheter]

Are you located in CA as your name suggests?

Yes

 

[deleted162650]

It's illegal for hospitals to directly employ physicians in CA. You do see "affiliated" medical groups though. Except for a few select markets, most groups have exclusive contracts with the hospital. If you care to PM more specifics, I may be of more help.

 

[bigeyedfish]

Pros: you can negotiate higher rates. Some contracts with payors have this built in.
Cons. You can't turn down business. You have to take the good with the bad.

 

[Noyac]

Job security is not for the duration. It is actually a 30-90 day contract because the hospital can dump a group “with” or “without” cause.

 

[CaliCatheter]

Noyac, Im glad you brought that up. Is that a standard out clause on all hospital contracts? Im assuming that is what happens when an AMC takes over a contract.

 

[Beach bum]

Noyac, Im glad you brought that up. Is that a standard out clause on all hospital contracts? Im assuming that is what happens when an AMC takes over a contract.

Probably. What ever the term is for the without cause clause is the true length of the contract. Often someone may think it is a “two or three” year contract but it really only as long as that clause allows.

 

[Noyac]

Noyac, Im glad you brought that up. Is that a standard out clause on all hospital contracts? Im assuming that is what happens when an AMC takes over a contract.

As far as I know that is standard. Most hospital contracts are 90 days but they can cancel at 30 days for cause. This is typical. It is no different than you signing a 3 yr contract and then giving them your 90 day notice 1 yr into the contract.
Basically, a contract term just means that the two parties agree to the terms for this period and therefore don’t need to renegotiate until then.
In other words, you sign a contract for $400k/yr for 3yrs. Unless you leave or they withdraw the contract, you are under contract.

 

[Noyac]

Probably. What ever the term is for the without cause clause is the true length of the contract. Often someone may think it is a “two or three” year contract but it really only as long as that clause allows.

Exactly.
But you are pretty clear on the terms for the length of the contract which is nice.