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Another Reason You Need A Contract
May 19, 2009

A client recently called with the following story:  He is a radiologist who has been working out of an MRI center for over 10 years is being laid off because the   center was bought out.   He wanted to know if there was any basis for him to receive severance.  I asked  him whether he had a   contract.  His answer was no.  So, my answer to him was that he has no   contractual basis for severance pay.  His 12 years on the job very well may
result in no good will payment, most likely.  

The remedy that I did share with this physician is that he should ask the purchasing entity whether they will offer him severance if he is willing to   sign a restrictive covenant not to open up his own office in the area.  

The easiest way to avoid a situation like this is to make sure you have a written contract that defines the terms of your employment and termination.

For additional information on this topic, contact Jennifer Kirschenbaum at (516)-747-6700 ext. 208
or at Jennifer@Kirschenbaumesq.com. Click here to access prior healthcare email newsletters or articles.   


Click here to order required policies and procedures for your practice including your:

(i)Compliance Plan (that provides your policies and procedures that identify and govern how to respond to potential billing and general practice liability);

(ii)Current Patient Privacy Policies (HIPAA, Red Flags Rule and Security Policies have recently changed.  Are you up to date?);

(iii)Employee Manual governing employee acceptable conduct; and  

(iv)Misconduct Pledge that governs licensure matters.  

Questions about why you need the Compliance Program and how the Compliance Program will change your practice?  Contact Jennifer at (516) 747-6700 ext. 308 or at Jennifer@Kirschenbaumesq.com.

Our Compliance Program complies with OIG specifications for individual and small group practices.  All HIPAA and Security policies include modifications pursuant to HITECH Act. www.kirschenbaumesq.com/healthcareorder.htm.

Jennifer Kirschenbaum, Esq.
Kirschenbaum & Kirschenbaum, P.C.
200 Garden City Plaza
Garden City, New York 11530
(516) 747-6700 x. 308(tel)
(516)747-6781 (fax)