Our client is a physician specialist who recently joined a well-established medical practice in New England. As proposed by the practice, our client’s employment agreement included provisions which would have burdened him with certain insurance costs and with substantial “clawback” risk in the event he chose to relocate his business in the future.
For example, the proposed agreement included an indemnity clause under which our client would indemnify the medical provider if certain medical coding practices were found not to comply with Medicare guidelines or certain health plan coding requirements. The proposed agreement also provided that our client pay a portion of “tail” medical malpractice insurance premiums, and that our client agree to restrictive non-compete language.
NLG worked closely with our client to understand his expectations, both in terms of compensation and in terms of risk. We negotiated with the provider to shift the burdens of tail coverage, and to reduce our client’s exposure to coding-related billing errors. We agreed to a non-compete provision, but reduced the application of that provision in terms of geography and time.
The revised agreement is now fully executed. Our client is busy working. His interests have been protected, and he has a clear understanding of his rights and obligations.