What Is A Physician Recruitment Agreement
Recruiting new doctors takes a lot of time and costs a lot of money. There is no guarantee that the doctor has the necessary medical, professional and personal skills. To a large extent, the hospital (which usually funds the practice`s recruitment efforts) also commits to paying the new doctor`s base salary for a limited period of time. The limited time guaranteed by the doctor`s office and the hospital is usually one year. The hospital often agrees to pay the difference between the negotiated salary and the money the doctor brings to the office. 4. While it is important for the physician to work full-time and remain in the area during the support and forgiveness phases, this does not mean that the physician cannot maintain staff privileges in other hospitals or answer calls or provide services in other locations. However, most employment contracts require that income from all sources be reported to the hospital to justify the need for medical assistance. The health care system generally protects its investments in a variety of ways. First, there will be a safeguard interest in the requirements of practice. The provisions relating to hedging interest must be carefully analysed. Often, the health care system will try to include a safety interest in all the requirements of practice. This can often be negotiated in such a way that only the requests of the doctor to be recruited are covered.
Taxes on additional funds can be large and difficult for many to pay. Since paying off/moving away from debt is not a viable option, doctors need to understand the deal they are making and accept only the support they need. 2. Exercise due diligence before entering into an employment contract. Some key questions are:• Have other doctors already been recruited for the respective hospital?• What has happened in these situations? (If the doctor is recruited for a doctor`s office with the support of the hospital, this question can be particularly important.) • Does the practice owner really want a partner or is your specialty really needed?• Have other doctors participated unsuccessfully in the past?• Are practice owners threatened when the new doctor enters the community? 1. Recognize that recruitment funds are not “free”. Many doctors feel that they only have to stay for the period of forgiveness and never repay a penny. In fact, agreements established to comply with federal law generally treat amounts paid to physicians as “loans.” Doctors may not pay taxes on these amounts as they were received, but declare their income and pay taxes on these dollars when forgiven. .