Provider Service Agreement Concerns

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Specializes in Psychiatry and Family Practice.

Hello,

I was recently offered a position with a reputable company. Salary and benefits are fantastic and work hours are 4 ten hour shifts a week with one of those days having ability to work remotely. The concern I have is regarding three clauses in the Employment Agreement they just sent me and I would like advise as to whether this is the norm or if anyone has also experienced these clauses?

EXCLUSIVE PRACTICE CLAUSE: Provider shall not practice their licensed profession except as directed by and for the benefit of the employer. Provider shall not practice providers profession in any other capacity, except as may be agreed upon in writing by employer and provider.

Any and all activities undertaken by provider as an employee shall be on behalf of and benefit of employer, and any fees received or generated as a result of providers professional services shall belong to the employer.

CONTINUING EDUCATION CLAUSE: Provider agrees to adhere to the continuing education requirements of the employer. In the event the provider leaves the company during the first 12 months for any reason other than job elimination or control of employer all expenses for continuing education shall be deducted from Providers final pay. Provider agrees to reimburse employer for the remaining balance within 30 days of date of termination of employment.

LIQUIDATED DAMAGES CLAUSE: It is agreed that in the event provider fails to give a 90 day notice of termination of employment the sum of $14,583.00 would be paid by provider to employer as reasonable and just compensation for such breach of failure of proper notice.

I appreciate any insight and/or experiences that you would be willing to share.

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The exclusive practice clause I believe has to do with liability. Were you hoping to moonlight? I do moonlight but not in the NP role so they don't have a problem with me doing it...but they usually don't want you practicing at other competing facilities as it can be a conflict of interest.

The CME clause wouldn't bother me unless your not planning on staying....then I just wouldn't minimize use of the benefit until your sure you will be there a year.

The liquidated damages clause seems a little steep, I do not have that in my contract. I wonder I you could negotiate this clause out?

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Specializes in Clinical Pediatrics; Maternal-Child Educator.

I agree with Rnis.

The mandatory 90 days is a little long for my personal tastes. If I were you, I would try to negotiate that clause to 30 - 60 days OR 90 days with the sum waived if the presence of extenuating life circumstances require resignation. That way if something outside of your control occurs requiring you to resign employment sooner than the 90 days they're requiring you're not stuck paying $14,583 to your employer.

I don't have a written contract so I can't speak on how common these clauses are. I have a verbal one that mostly addressed hourly pay, office hours, and benefits. I don't mind not having the written one because my employer has been more generous than originally discussed in our first meeting.

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Specializes in Psychiatry and Family Practice.

They told me today that they would not remove the clause about exclusive employment. They said it was so that a PCP at their company could not work as a PCP at another company but I would be working as a psych NP - not a Primary Care Provider so I told them this would not apply to me. They still refused.

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Specializes in Psychiatry.

I would have a contract lawyer examine this contract before you agree to anything, it sounds like there imposing a bit of restraint of trade on limiting your moonlighting. Why should they have the power over you when you're on your own time, maybe if they limited it to a specific geographic region. Have someone who does employment contract law examine this 1st.

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Specializes in DHSc, PA-C.
On 5/31/2020 at 8:30 PM, lbnp said:

EXCLUSIVE PRACTICE CLAUSE: Provider shall not practice their licensed profession except as directed by and for the benefit of the employer. Provider shall not practice providers profession in any other capacity, except as may be agreed upon in writing by employer and provider.

Any and all activities undertaken by provider as an employee shall be on behalf of and benefit of employer, and any fees received or generated as a result of providers professional services shall belong to the employer.

CONTINUING EDUCATION CLAUSE: Provider agrees to adhere to the continuing education requirements of the employer. In the event the provider leaves the company during the first 12 months for any reason other than job elimination or control of employer all expenses for continuing education shall be deducted from Providers final pay. Provider agrees to reimburse employer for the remaining balance within 30 days of date of termination of employment.

LIQUIDATED DAMAGES CLAUSE: It is agreed that in the event provider fails to give a 90 day notice of termination of employment the sum of $14,583.00 would be paid by provider to employer as reasonable and just compensation for such breach of failure of proper notice.

The exclusive practice clause is not all that uncommon. If you plan to keep a side job, you should simply ask for approval to keep that job and get it in writing. Then you are good unless you want another side job or to change side jobs. Then you need that approved.

The continuing education I guess I can understand. You get $XX per year and if you leave before that year you pay it back.

This liquidated damages I've never seen before. I've had 90 day notice required, but never with a dollar amount attached to it. If you break a 90 day notice agreement, then the employer can do what? Take you to court for breach of contract and spend who knows how much money on this and how long it would take. I've never heard of anyone actually being sued for breach of contract for not sticking to their 30-60-90 notice requirement. I'm sure it must happen somewhere though. So, they are just skipping this step and asking for a set dollar amount upfront. I would try to get this out of the contract.

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Specializes in Surgical Oncology.

Exclusive Practice Clause: I have something similar to this in my contract. They don't want competition with other hospital corporations in the area. If you do plan to do some side PRN/moonlighting work, I'd have this conversation with them now. Even if you don't have a gig set up yet, talk to them about what your potential gig would be to see how they respond.

Continuing Education Clause: I've not seen this in my contracts. Typically, CME stipend is treated as a benefit, as is medical, dental, licensing fees, vacation days, etc.

Liquidated Damages Clause: I have never seen this before. I would speak to an employment lawyer BEFORE you sign. This doesn't seem to be a very reasonable amount.

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