Explore this issue:January 2015
Deciding to Leave: Physicians consider leaving their practices for many reasons, including philosophical differences with partners, family needs, illness, better hours, or financial concerns. If you’re thinking about exiting your practice, you should review your existing employment agreement and, in some cases, your shareholder agreement to determine what provisions will be applicable if you decide to terminate the agreement. Typically, an employment agreement will address various matters dealing with a physician’s departure from a practice, including the grounds for termination, notification requirements of your intent to terminate, any noncompetition and/or nonsolicitation restrictions, and malpractice tail insurance coverage.
The employment agreement will set forth the allowable reasons for termination, whether it is for cause or without cause, as well as any restrictions on termination rights. For example, some agreements won’t allow termination without cause during the initial term of the agreement. The agreement should also include the proper method to provide notice of termination, such as first class mail, overnight courier, or hand delivery. The amount of advance notice you must give to the practice prior to your departure will factor into the timing of your decision. Although the notice provisions set forth the minimum amount of notice you must give, your specific circumstances may necessitate giving more notice to stay on good terms with your current practice by giving it enough time to handle the transition.| | | Next → | Single Page