We all see what is happening – the rising costs of operation and decreased reimbursement are sending many doctors running towards hospital employment life - giving up some of their burdensome administrative responsibilities and ownership of profits for a set salary and defined vacation time. The trade-off for a nice salary and good benefits without the burden of running an office seems simple – turn over all of the burdens of your practice (your patients) and just come in and do what you do best – practice medicine. It’s a very persuasive pitch.
The clear danger in being lured into hospital employment is in turning over your patient records (which for many doctors amounts to a life’s work of practice development). With the transition to electronic medical records, hospitals in the area will come in and transfer all of your patients records to electronic form in the transition. For many, the transition will be the last time those records will be “owned” by the doctor, regardless of whether or not the employment arrangement lasts. Once the records are turned over, even if the doctor’s contract with the hospital provides records will be returned, another element of an employment arrangement with a hospital, for those doctors who will maintain their practice location, the right to use the real estate will also be transferred to the hospital. If the arrangement does not work out, you may not be able to practice in your location any more. The final nail in the hospital transition coffin is where a restrictive covenant is in the employment contract – which may effectively prohibit you from practicing within a set radius of your current practice should the arrangement not work out. What we have set forth above is the triple threat – (1) take over patients via their records from a practical standpoint by converting and maintaining on Hospital EHR; (2) take over of physical space; and (3) restrictive covenant keeping you out should employment not be your thing. So, some of the biggest dangers of becoming a Hospital employee from a legal perspective are being able to unwind your deal if you determine employment is not for you. Doing so is difficult, especially if such considerations are not taken to heart at the inception of such an arrangement.
If you are thinking about joining a Hospital – you need a contract AND counsel to assist with that contract to ensure your interests are protected, which we will be happy to help with. If you aren’t sure you want to make the switch to employee or are evaluating offers, feel free to contact me to discuss the costs/benefits. We also may be able to discuss different practice arrangements other than hospital employment.
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