Compliance

Termination Notice

December 30, 2013

“Bob, we’ve got to give you your two weeks notice. Here’s a check for the next two weeks’ compensation. Just pack your personal belongings and Jerry, here, will see you to the door.”

Of course, if your medical group has a contract with a facility, say an exclusive contract, it can’t technically be “fired.” But its contract can be “terminated.” If there’s a without cause termination provision, especially a short one, in the contract, it might be a distinction without a difference. You’ll still be looking for a new job.

In times like these, when larger groups are displacing local ones with greater frequency and the power is shifting in favor of facilities and away from physicians, it’s time to rethink agreeing to short without cause termination provisions.

First, especially if you’ve ignored my argument that it’s essential that your group provide services at multiple facilities to create a safety net against over-reliance on one facility relationship, 90 days if not nearly enough notice to either find another “home” or wind up doing business and find your group’s members other jobs.

Second, depending on your state’s laws, the 90 day termination notice period might be a cap on the length of contract damages in the event the facility simply tosses you out without notice or otherwise breaches your agreement.

Termination provisions and provisions governing what happens upon termination are taking on larger importance in any medical group deal.

Comment or contact me if you’d like to discuss this post.

Mark F. Weiss

www.weisspc.com

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