physician contract from recruitment to retirement
DESCRIPTION
TRANSCRIPT
Phoenix Physician Services
“Physician Contract Negotiations – From Recruitment to Retirement”
Presented by Rochelle Glassman, President and CEO
3610 N. 44th St. Ste 100 Phoenix, AZ 85018
Rochelle Glassman Bio• Rochelle Glassman is the founding partner of Phoenix Physician Services,
Inc. and a nationally recognized healthcare consultant. Rochelle brings years of high-level experience in the healthcare field to our clients – experience that has generated millions in revenue. Trained as an RN, Ms. Glassman became CEO of a private practice in Beverly Hills that grew from three physicians to more than 150 and became a nationally recognized integrated multi-specialty practice.
• Ms. Glassman has achieved significant success stories within the healthcare industry. She created a new line of business for one of California’s largest HMO’s in workers compensation/occupational medicine that increased market share and revenue by $50 million.
• For Anthem Health in Indianapolis, then the largest healthcare provider in the United States, she developed the first capitalized specialty network in the country.
• Ms Glassman also spearheaded the Healthy Baby program for CIGNA Healthcare, which reduced the cost of pre-term deliveries across the country and was an enormous marketing success.
Steps for a Successful Hire
Prior to the recruiting process:
Identify practice need
Identify type of Physician
Full or Part time
Expectations of new Physician
Salary, benefits, bonus structure
Employment and/or Partnership
Partnership with Hospital
Identify Practice Need
Complete a needs analysis
Discuss at Annual Strategic Planning meeting (with partners)
Cost of bringing on a Physician
Partner(s) approval
Physician Recruitment Process
One year hiring process from identification to start dateNegotiate contractual termsLegal reviewLicensing Healthplan credentialing and contractingHospital privilegesHospital EMR training
Type of Physician & Hiring needs
Specialty
American or Foreign trained
Board Certified or Board Eligible
Full-time/ Part-time status
Numbers of days, patient hours, weekends and call rotation per month
Office setting office and/or hospital
Physician Expectations
Number of patients seen Number of hours per work day Number of work days per month
On-call schedule (emergency, hospital, telephone) Typical schedule Patient charting, reading and signing off Attire (business, scrubs, casual) Administration requirements
HospitalPractice
Practice Expectations
Provide office/dictation station
Lab coats
Clinical mentor for first year
StaffDo they get their own MA?
Salary, Benefits, and Bonus Base pay, who is paying; the practice or the hospital?
Benefits Medical, dental, vision
401k
Cell phone/pager/internet
Gas/mileage reimbursement
License, dues and publications
CME
Relocation
Vacation
Bonus - type of bonus structure?
Employment or Partnership?
Employment Term
PartnershipCriteria for Partnership
Buy-in Terms
Employment Agreement for a Partner
Similar to employed (non-owner) Physician
May have additional benefits
Must have same conditions as bylaws of Corporation
Partnership with Hospital
Based on community needs
Recruitment assistanceHospital allowance
Salary guarantee
Forgiven loan
Service area
Length of contract2 years; 3 years; 4 years
Managing the Employment Process
Organization is key, remember the candidate is interviewing you as well
Establish interview process
Identification of potential candidates
The interview
Candidate selection
Employment Contract
Information to include: Licensing requirements for State
What type of medicine
Type of employment
Facilities expected to work in
Term of contract (prior to start date) State licensing requirements
Hospital privileges
Participation in at least 80% of insurance plans
employer participates in
Term of Employment Contract….
Contract term
Is the contract self renewing?
Termination notice “not for cause”
Termination notice “for cause”
Payment through last day of notice
Disciplinary board action-limiting scope of practice
Notice period (90 days;120 days;180 days, etc)
Term of Employment Contract….
Base pay and bonus program Revenues Medical records Expenses Termination pay Nature and extent of services Working facilities Vacation Insurance
Term of Employment Contract….
Tail insurance Non-solicitation/non-compete Future relationship of parties Assignment of agreement Binding Representation by council Severability Venue- practicing state Governing law
Partnership
What does this mean? Define partnership Define responsibilities Partnership eligibility
1 year review period, extend employment if not meeting expectations
Partnership – frequently asked questions
What are the costs?
What is being purchased (goodwill, depreciated assets)
The buy-in (examine debt and liability)
What decision making authority will I have as a Partner?
Contracts related to Partnership
Buy/sell agreement
Bylaws of the CorporationArticles of Organization
May have different contracts for LLCs
Employment agreement – terms of employment
Buy/Sell Agreement
This agreement details the terms for buying and selling the shares of the practice.
Purchasing of the stockWhat is the Practice worth?
What are we buying?
Is there a payment plan?
Sale of the stock
Terminating Events
Death
Disability or Insanity
Divorce
Conflict of interest
Suspension of shareholders license
Expulsion of shareholder
Retirement
How to handle payments? (purchase price upon termination, death of simultaneous partners, deferred payment terms)
Bylaw Agreement
These are the formal Corporate policies required to run a corporation. Who are the officers? Shareholder meetings List of shareholders, number of their shares they hold, and entitlement to vote Notice of special meetings of shareholders Quorum and Adjournment
Ability to vote by proxy
Bylaw Agreement
Shareholder check signing authority What are the policies?
One signature or two signatures based on the amount
Indemnification
Insurance
Ownership of policies
Duties of Trustee
Bylaws….
Majority vote required usually to terminate a partner
Voting – Each shareholder usually has one vote
Elections - AnnualOfficers (Chairman, Secretary, Treasurer , Vice Chair)
Retirement- Exit Strategy Group Practice
Provide one year written notice to Partners in order to provide for replacement physician.Sale of stockSale of ownership in building (separate LLC)Sale of stock in equipment (leasing company)
Solo Practice Sell Practice Hire employed Physician for a one year period with expectations of selling practice.Hire Physician as employee/management, stay on as Medical Director and collect incomeSale of building (separate LLC)Sale of leasing company equipment
Thank you for your time today. If you have any questions please feel
free to stop by the Phoenix Physician Service’s Booth
“Helping You Profit From Your Success”