For this week’s blog, I asked Dennis Buhring, MBA, CPA, CMPE, a Florida-based healthcare consultant who recently retired as President of Orlando Health Physician Associates (OHPA), to share his insights on employment agreements. In his role at OHPA, Dennis oversaw all administrative functions for this multi-specialty medical group of 159 physicians and 39 medical offices as well as development and growth of an integrated delivery system. He also oversaw the acquisition of Physician Associates by Orlando Health in 2013. Here are Dennis’ words of wisdom about employment agreements:
The old Latin saying caveat emptor or “buyer beware” applies whenever you are asked to sign a new employment contract. If you are considering joining a new practice, here are three imperatives:
1. If you don't like the culture or environment, how do you get out?
I encourage all physicians entering into a new employment agreement to do so with eyes wide open. Do your homework. Know the expectations and limitations. Ask questions until you receive the answers you need. And most importantly, find a position and environment that is the right fit for you.
Dennis Buhring can be reached at dbuhring@gmail.com.
The old Latin saying caveat emptor or “buyer beware” applies whenever you are asked to sign a new employment contract. If you are considering joining a new practice, here are three imperatives:
1. If you don't like the culture or environment, how do you get out?
- You will most likely be asked to sign and agree to a non-competition agreement. If you choose to leave, this often requires that you move and practice at least 10-15 miles from that work location.
- If you leave, you may have to agree to practice outside that market area for at least 24 months.
- If you received any compensation for joining the practice, you might have to repay all or a portion of this depending on the length of time you are required to remain employed until this clause expires.
- What is your expected office productivity? How many patients are you expected to see daily?
- What are the expenses you will be required to cover?
- Be certain you understand how administrative expenses will be allocated to you. Often, these are new expenses and can result in you being asked to cover higher total expenses. And unless you increase the number of patients you see, you will see a compensation decrease.
- You will be going into a new environment. It is important to know who will protect your interests. Before signing any new contract, talk with that person so you can establish expectations. Too many times I hear from doctors that their questions go unanswered.
- In Florida, we all work in what is called an “at will” employment environment. Know what happens to you if your employer fires you. What happens to your non-compete? Are you still required to repay any monies that were paid to you for joining the practice? Know the circumstances that would generate an employer terminating you. You have to consider the worst case scenario when evaluating any new employment contract.
I encourage all physicians entering into a new employment agreement to do so with eyes wide open. Do your homework. Know the expectations and limitations. Ask questions until you receive the answers you need. And most importantly, find a position and environment that is the right fit for you.
Dennis Buhring can be reached at dbuhring@gmail.com.