Being labeled an independent contractor, being required to sign an agreement stating that one is an independent contractor, or being paid as an independent contractor (that is, without payroll … Providing business legal services in Northern and Southern California, including San Francisco, Classifying a physician as employee or contractor, Stark and Anti-Kickback laws re physician employment and contractor agreements, Termination clauses in physician employment and contractor agreements, Bringing a new partner into a medical practice, Buy-in and buy-out of physicians to a medical group, Shareholder buy-sell agreements for medical corporations. * Continuing medical education and related travel costs (again, within reasonable limits) If you want a contract for a term of years, be sure to include termination for cause. 4. Delaware 9. Montana 27. Collaborative Practice Agreement for Nurse Practitioner (SAMPLE) A. Contractor enters into this Agreement as, and shall continue to be, an independent contractor. is the physician on the board of directors? Should you incorporate your medical practice? As always, the contract may not take into account the volume or value of any referrals or any other business generated between the parties. Should you incorporate your medical practice? Michigan 23. Compensation does not exceed FMV In determining the status of an independent worker or contractor… For example, the physician might receive an incentive of X% of the gross revenue he or she generates in excess of $Y (Y being the expenses associated with the income including an allocation of general overhead, that is, the break-even point in income). Nebraska 28. But first, let’s ask the threshold question…. The employment contract or independent contractor agreement must clearly delineate the expenses that the practice will pay for the physician. [Note that to fit within its safe-harbor, the Anti-Kickback law requires that the contract state the total, aggregate compensation payable to the physician, hence you may not use a formula under the Kickback safe harbor.]. Term and Termination. If you are … Deal With Student Loans. 1. North Carolina 34. 510-796-9144. mattdickstein@hotmail.com mattdickstein.com. Contractor shall prepare reports relating to Contractor’s Services provided at client events in the ... Healthcare Independent Contractor Agreement … See the discussion above re employee-physicians for more on this concept. *** A bonus based on the physician’s personal productivity or the achievement of specified quality indicators Job Description. For more information on this subject, see my article, Bringing a new partner into a medical practice. Note that this article is focused on contracts that are provided to you (the physician) by a company that is hiring you to do some work for them. *** For the physician’s own labor in supervising others. Whether or not the agreement is for a contractor or an employee, it must clearly delineate the job responsibilities. per relative value unit, patient encounter, or fee schedule) In general, under Stark, compensation to an employee-physician is OK if: 1. In some cases – such as running your own busi… New Hampshire 30. The contract pays compensation at FMV Physicians particularly care about their hours, be it full-time or part-time, night and weekend coverage, on-call hours and the like. New Jersey 31. Legal compliance checklist for a medical corporation, Corporate structure - Levels of legal control over a group medical practice, Legal structure for a group medical practice, How to structure a new group medical practice, Legal structure for a medical practice with 50/50 shareholders, Shareholder buy sell agreements for medical corporations, How to bring a new partner into a group medical practice, Buy-in and buy-out of physicians to a medical group, Installment buy-in of a physician to a medical practice, Removing a doctor / shareholder from a practice, Using buyout to resolve a shareholder deadlock, Management agreements for surgery centers, Classifying a physician as employee or contractor, Physician employment and contractor agreements, Termination clauses in physician employment and contractor agreements, Notices to patients when a physician leaves a group practice, Professional service agreements for hospital-based physicians, Stark and Anti-Kickback laws re physician employment and contractor agreements, Outline of a compensation / expense structure for a group medical practice, Compensation structures for a group medical practice, Stark and Anti-Kickback laws regarding the compensation structure of a group medical. Compensation. Arizona 4. 5. medical records received by Contractor in connection with a client event. Term sheets for the buying or selling of a medical practice, Preparing to sell your solo medical practice, Avoid successor liability when buying a medical practice, including provider numbers and taxes, When large medical groups buy up small physician practices - legal and economic structure, Professional service agreements for hospital based physicians, Multi-discipline, integrated health care practices, How a non-licensed person works with a medical practice; administrative / management service companies, How to structure a management company’s relationship with a medical practice, Regulatory compliance for medical practices, Stark and Anti-Kickback laws regarding the compensation structure of a group medical practice, Leaving a medical practice / closing a medical practice, Action items for the estate when a solo physician dies, Franchising for medical, dental, veterinary businesses, Attorney for Medical Corporations and Group Medical Practices, Attorney for Dental Corporations and Group Dental Practices, Attorney for Veterinary Corporations and Group Veterinary Practices. The Practice Operator shall require that each Physician practicing full time by and through the Practice execute an employment agreement (a “Physician Employment Agreement”) or an independent contractor agreement (a “Physician Independent Contractor Agreement… Physician Independent Contractor Agreement California California courts generally think that a worker is a worker, unless the alleged employer proves that the worker is an independent contractor. Using this key concept, you may pay a physician employee as follows: *** A percentage of collections for services personally performed by the physician Ohio 36. Alaska 3. 3. * Malpractice insurance Kentucky 18. Your physician employment agreement will stipulate whether you will be hired as an employee or an independent contractor. * The purchase price A medical practice should always be clear and confident in how it classifies employees and contractors. If the physician (or their family member) is paid as an independent contractor instead of as an employee, then the agreement must satisfy either the Stark … Maryland 21. Minnesota 24. Physician Employment Agreement as a resource for physicians who want to be prepared to negotiate an ... independent contractor … A practical reinforcement to the independent contractor status is to include provisions in the ICA that commit the corporate contractor to comply with all compensation, payroll, benefits, and other … 6. 4.8 Employment and Independent Contractor Agreements. Here is a list of expenses that practices frequently pay: * Professional society dues (within reasonable limits) North Dakota 35. Stealing employees - may a physician solicit away your employees? * The extent of the physician’s participation in control decisions for the practice, e.g. Agreement. Independent Contractor represents that he is a qualified physician duly licensed to practice medicine in all jurisdictions where he shall be required to perform his duties pursuant to this Agreement, including, but not limited to, the state (s) of Louisiana. Making legal matters easy and economical for your business. Requesting adjustments to the contract is completely acceptable. Nevada 29. Making legal matters easy and economical for your business. 4. This article explains how you pay compensation to a physician employee or contractor in compliance with the referral laws for California and the fed (Stark and Anti-Kickback). 2. No. Indiana 15. Once beyond the boilerplate, both contracts deal with the same … Just as for employee-physicians, you may pay to a contractor a percentage of collections or productivity bonus, but only for services performed personally by the physician, not for services provided by someone else. These should be reviewed carefully before signing. *** Compensation per unit of service personally performed by the physician (e.g. 510-579-6470. mattdickstein@hotmail.com mattdickstein.com, 39488 Stevenson Place, Suite 100, Fremont, CA 94539 The contract is for identifiable services Contractor is an independent contractor, and neither Contractor nor Contractor's … Read Stark and Anti-Kickback laws re physician employment and contractor agreements. All Services shall be performed only by Contractor and Contractor's employees. I prefer that a physician’s employment contract or independent contractor agreement have a minimum term of 1 year (to satisfy the Stark and Kickback laws), but otherwise be at-will with a notice period, meaning that either the physician or the practice can terminate the relationship at any time (after the notice period) for any reason. The landmark decision of Dynamex … Iowa 16. You probably don’t need a lawyer to explain physician compensation, so I’ll keep it short. Independent Contractor agrees that customers of the Company shall include, but are not limited to the following: 12. See also, Buy-in and buy-out of physicians to a medical group. Physician employment agreements sometimes have clauses on the physician’s purchase of ownership in the practice. This is an independent contract agreement between a health care worker and a provider of health care services such as vaccinations, screenings and health education, and who uses the services of qualified independent healthcare professionals, including but not limited to registered nurses, licensed practical nurses, nurse assistants, medical … You can think of it as part of negotiating an offer. Arkansas 5. Essential Terms of a Physician Employment Contract and an Independent Contractor Agreement The essential terms are about the same as between a physician employment contract and a physician independent contractor agreement. INDEPENDENT PHYSICIAN AGREEMENT This Independent Physician Agreement (“Agreement”) is made as of April 12, 2006 (the “Effective Date”), by and between VIRTUAL RADIOLOGIC PROFESSIONALS, … The contract specifies and encompasses all of the services that the physician will provide, and the aggregate services are reasonable and necessary for legitimate business purposes * Board certification. In this article, I briefly outline the legal requirements for paying compensation to a physician-employee and to a physician-independent contractor. 510-796-9144. mattdickstein@hotmail.com mattdickstein.com, In this article, I look at the essential terms of a physician employment contract and a physician independent contractor agreement. INDEPENDENT CONTRACTOR certifies that he\she is licensed physician, nurse practitioner, or physician … Physician Buy-In. In general, under Stark, you may pay an independent contractor physician if: 1. IMPORTANT — Have an attorney run the compensation arrangement through the federal and CA Stark and Kickback laws. * Felony conviction or abuse of controlled substances. Alabama 2. This is an important question because, from time to time, to generate revenue, the IRS and CA EDD will audit medical practices on the issue of whether a physician is an employee or independent contractor. The hiring entity and the physician should be mindful, however, that establishing an independent contractor relationship is not automatic from legal standpoint, their desire and their written agreement notwithstanding. A medical practice rarely has Stark issues when it pays its physician employees straight salary or compensation based on an hourly rate. https://watkinsfirm.com/independent-contractor-agreements-for-physicians Make sure you have a good plan for retiring your student loans. Client will not require Contractor to rent or purchase any equipment, product, or service as a condition of entering into this Agreement. Lawyer for Physicians, Medical Corporations and Group Medical Practices, Matt Dickstein, Business Attorney - P.O.Box 3504, Fremont CA 94539-5856. My prior article, Physician employment and independent contractor agreements, gives you the basics about hiring a physician as an employee or contractor. Notice- Independent Contractor shall notify the Company of any changes … One significant difference is that employment agreements sometimes have clauses that address the physician’s purchase of ownership in the practice, whereas independent contractor agreements rarely have such terms. Before you sign that contract and make an employment commitment, hire a … trust fund taxes, interest and penalties. This article explains how you pay compensation to a physician employee or contractor in compliance with the referral laws for California … Georgia 11. Once beyond the boilerplate, both contracts deal with the same basic issues, such as the description of services, compensation, reimbursement of expenses, and term and termination (all discussed below). You may not, however, pay an employee-physician for services performed by others or a share in the overall profits of the group, or a facility or department. What is California … You have a contract with the physician Oklahoma 37. If an independent contractor is performing non-clinical, administrative services, you may need to execute a separate HIPAA business associate agreement (“BAA”); however, no BAA is required to the extent the physician is acting as either a member of your workforce (i.e., you have the right to control them), or as a member of an organized health care arrangement … The essential terms are about the same as between a physician employment contract and a physician independent contractor agreement. The California independent contractor agreement is used to define a client’s expectations when employing the services of an individual working independently to fulfill a duty. In fact, most doctors hired cannot be properly classified as independent contractors. Independent Contractor Arrangements. Expenses. I prefer a free relationship, as opposed to contractually locking the two sides into a relationship that isn’t working – this only leads to unhappy endings and litigation. * Hospital privileges On January 1, 2020, the California Assembly Bill 5 (AB5) goes into effect. Connecticut 8. 510-579-6470. mattdickstein@hotmail.com mattdickstein.com, 39488 Stevenson Place, Suite 100, Fremont, CA 94539 Stealing employees - may a physician solicit away your employees? The law places limitations on a company’s ability to classify workers as independent contractors and requires them to use a three-part test to prove these workers are independent contractors. New York 33. Massachusetts 22. Please get competent legal counsel before you hire a physician. Please read my article Classifying a physician as employee or contractor to learn more, including the factors for classifying physician employees and contractors. Get competent legal help for your group practice’s compensation plan. The primary exception is for a physician in the employ of a group practice; for more on physician compensation in group medical practices, see Stark and Anti-Kickback laws regarding the compensation structure of a group medical practice. Idaho 13. The contract doesn’t take into account the volume or value of referrals, and is commercially reasonable even if no referrals are ever made. Term sheets for the buying or selling of a medical practice, Preparing to sell your solo medical practice, Avoid successor liability when buying a medical practice, including provider numbers and taxes, When large medical groups buy up small physician practices - legal and economic structure, Professional service agreements for hospital based physicians, Multi-discipline, integrated health care practices, How a non-licensed person works with a medical practice; administrative / management service companies, How to structure a management company’s relationship with a medical practice, Regulatory compliance for medical practices, Stark and Anti-Kickback laws regarding the compensation structure of a group medical practice, Leaving a medical practice / closing a medical practice, Action items for the estate when a solo physician dies, Franchising for medical, dental, veterinary businesses, Attorney for Medical Corporations and Group Medical Practices, Attorney for Dental Corporations and Group Dental Practices, Attorney for Veterinary Corporations and Group Veterinary Practices. To learn about non-competition clauses for physicians, read May a physician compete against his or her former practice? Matt Dickstein, P.O.Box 3504, Fremont, CA 94539-5856 Matt Dickstein, P.O.Box 3504, Fremont, CA 94539-5856 My prior article, Physician employment and independent contractor agreements, gives you the basics about hiring a physician as an employee or contractor. For more on the termination of a physician employment contract or a physician contractor agreement, see my article, Termination clauses in physician employment and contractor agreements. Judges are accustomed to seeing non-compete clauses in physician employment agreements and not independent contractor agreements. Colorado 7. Louisiana 19. Under no circumstances shall Contractor, or any of Contractor's … Lawyer for Physicians, Medical Corporations and Group Medical Practices, Matt Dickstein, Business Attorney - P.O.Box 3504, Fremont CA 94539-5856. The contract has a term of at least one year This article only gives a short roadmap of physician employment contracts and independent contractor agreements. a percentage of collections) so long as the formula is set in advance in the contract. TTG LOCUM TENENS INDEPENDENT CONTRACTOR AGREEMENT Independent Contractor shall provide medical services in a competent and lawful manner and at all times as requested by Client Companies (Medical Facilities). A practice usually will pay more expenses for an employee than for a contractor. Usually the clauses are vague and non-binding, and only express the parties’ expectations on the subject. 3. Hawaii 12. Florida 10. Attorney for Accountancy Corporations and Group Accounting Practices. Independent Contractor Status. The essential terms are about the same as between a physician employment contract and a physician independent contractor agreement. You have a contract with the physician The practice’s payment of a physician’s “personal” expenses is an everlasting and wondrous source of conflict. Legal compliance checklist for a medical corporation, Corporate structure - Levels of legal control over a group medical practice, Legal structure for a group medical practice, How to structure a new group medical practice, Legal structure for a medical practice with 50/50 shareholders, Shareholder buy sell agreements for medical corporations, How to bring a new partner into a group medical practice, Buy-in and buy-out of physicians to a medical group, Installment buy-in of a physician to a medical practice, Removing a doctor / shareholder from a practice, Using buyout to resolve a shareholder deadlock, Management agreements for surgery centers, Classifying a physician as employee or contractor, Physician employment and contractor agreements, Termination clauses in physician employment and contractor agreements, Notices to patients when a physician leaves a group practice, Professional service agreements for hospital-based physicians, Stark and Anti-Kickback laws re physician employment and contractor agreements, Outline of a compensation / expense structure for a group medical practice, Compensation structures for a group medical practice, Stark and Anti-Kickback laws regarding the compensation structure of a group medical. 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