Hypothetical question about losing a contract

[PainDrain]

Let’s say you have small private practice and have been given an eight year contract. You have done well on your previous contract and the hospital renewed it within the past year. Now, the chief of the department is aloof and barely involved in most of the day to day clinical work. Out of the blue the hospital cancels the contract and gives the group the boot.

How does this happen? Can they simply cancel the contract? Would they have to buy it out?

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[Arch Guillotti]

How does this happen? Can they simply cancel the contract? Would they have to buy it out?

Probably an “out” clause that they exercised.

 

[US411]

In effect, all contracts have a no fault "out clause".

These are most often 90 days. That allows your group to walk or the hospital to boot you with 90 days notice.

Therefore all contracts are 90 day contracts. The only reason they call them X years contracts is to not have to negotiate every year and resign it all.

 

[deleted126335]

Contract renewal time or termination is a common method of getting rid of players that administration is dissatisfied with, as well as the obvious gaining more control and access to your revenue stream.