Although the termination clause is often found at the end of the agreement, it is one of the most important provisions for both parties. Generally, employment agreements provide a way for either party to terminate the contract “without cause” by providing the other party with X days prior written notice. However, you may consider including a clause that gives the practice the option to pay the mid-level provider his or her salary in lieu of providing advance notice.
Explore This IssueJuly 2011
In addition to termination “without cause,” employment agreements will almost always provide a series of grounds upon which the parties can terminate the contract “with cause.” Here is a list of some of the grounds for which a practice can terminate the contract “with cause”:
- Reasonable determination that the mid-level’s patient care services create a substantial likelihood of injury or damage to patient health or are below the standard of care in the community.
- For any material failure to comply with a professional standard (e.g., federal and state laws and regulations, state medical board rules).
- Conviction of, plea of guilty to or plea of no contest to any felony or any crime involving moral turpitude.
- Exclusion from participation in a federal health care program (e.g., Medicare, Medicaid).
- Suspension, termination or revocation of the licensure and certification required to perform the professional services.
- Performance of duties under the influence of alcohol or illegal drugs.
- Any material breach of the agreement.
Steven M. Harris, Esq., is a nationally recognized health care attorney and a member of the law firm McDonald Hopkins, LLC. Steve may be reached at firstname.lastname@example.org.