How Is the Affordable Care Act Impacting Physician Employment Contracts?

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Many of our clients are asking how the Affordable Care Act will affect physicians and their employment contracts. At this point, we are noticing the following trends:

1. Many private practices are unsure about the effects of Obamacare and are postponing new hires.

Initial surveys of private practices reveal that they have a lot of anxiety about Obamacare. According to the Medical Group Management Association (“MGMA”), two in five physician practices are unsure about whether they will participate on the government-sponsored marketplaces known as exchanges. Also, while physicians said they saw new opportunities to provide care to the uninsured and a medically underserved population, more than 80 percent of doctors worried about what they will be paid from the plans participating on the exchanges.

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The Myth that Contracts aren’t Negotiable

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One of the biggest myths told to physicians in the early stages of a contract negotiation goes something like this: “The contract is just a routine form. We really don’t negotiate it.”

If we had a dollar for every time our team heard this repeated, we would be retired on a tropical beach far away by now! In truth, it’s a standard line used in every industry (and a pretty lame one at that).

Please don’t take it at face value.

If you are ever told something similar about your contract being non-negotiable, alarm bells should be going off because it’s a ruse and it’s not true. In reality, your employer hopes you’ll just take the contract as-is.

That would be the easiest thing for everyone involved, right?

Wrong.

It’s the path of least resistance.

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Why You Should have a Lawyer Review your Employment Contract

The Importance of Contract Review Services

Many physicians believe they can review and negotiate an employment contract just as well as a lawyer. For sure, physicians are extremely intelligent, and can perform some of the tasks that lawyers do, but not all of them. There are at least three reasons that physicians should still engage a contract lawyer, even when they believe they can perform the review and negotiation themselves.

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4 Ways the Affordable Care Act is Impacting Physicians

Heraclitus, the famous Greek philosopher said “The Only Thing That Is Constant Is Change -”

Our team could research and write for weeks on various topics related to the implementation of Affordable Care Act – how it affects patient care, changes to how healthcare is delivered in the United States, its impact on how hospitals and private practices are operated, etc.

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Contract Review – Can I Get That In Writing?

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In previous posts, I’ve highlighted the importance of understanding certain language in an employment contract that could come back to haunt you if not handled correctly. We discussed the forgiveness period as it pertains to loan repayment and the difference between “claims-made” versus “occurrence” malpractice insurance. But what other terms and conditions in your contract are either unclear or simply missing altogether? Remember, if a dispute arises, the written contract will trump an oral agreement.

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“Claims-made” vs. “Occurrence-based” Malpractice Insurance Coverage

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Our physician-clients approach us with many questions regarding malpractice insurance coverage. The most common ones are “what kind of malpractice insurance is the employer providing me?” and “who will pay for tail coverage if I leave the employer?”

Nowadays, most employers pay for malpractice insurance for their practicing physicians, especially for beginning and non-shareholder physicians.

The details of the policy should be laid out in the physician employment contract and policy documents. So, relatively speaking, this issue is rarely negotiated – most of the time it’s already in the contract!

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Physician Contracts, Disability Insurance and Investments

Contracts: Horrible Unexpected Results Of Casual Contracts

It’s tempting to trust your new employer and assume he or she has your best interests at heart. Employers are, after all, showing faith in you when they offer you a contract. However, it’s not uncommon for unexamined contracts to contain unintended pitfalls that make things go horribly wrong, sometimes long after you’ve been hired. That’s what happened to a physician in the Chicago area, as described in this article. How do you overcome contract dangers like this?

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Physician Contract Negotiation: False Assumption

 

Don’t assume you cannot negotiate physician contracts

Most physicians who are finishing their training assume they will have little to no chance at negotiating with a potential employer. Seasoned physicians know from experience this is not true, even for first timers. Don’t get fooled by the employer’s first line of defense…”this is a standard physician contract…the same one we give everyone else…it is compliant with current state laws…and it will not be modified.”

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Physician Interviews: Employment Surprises

Don’t let inadequate interviewing cause employment surprises

When asked, most physicians say they feel equipped for the medical aspect of their career, but not prepared to interview and negotiate successfully. Many choose to ignore this and enter their interviews unprepared. Often times this leads to anxiety and a lack of information which can result in unfortunate surprises once employment begins.
Other physicians recognize this problem, but either don’t know where to start or can’t find the time to adequately prepare. In all of these circumstances physicians would benefit from knowing the following 5 rules which are a part of the 15 Basic Principles for a First Interview found in the Physician Employment Interview Kit™.

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