PHYSICIAN ASSISTANT EMPLOYMENT AGREEMENT TERMS OF AGREEMENT
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1 PHYSICIAN ASSISTANT EMPLOYMENT AGREEMENT This Physician Assistant Employment Agreement is effective [ / / ] between, M.D., P.A. doing business as Dermatology, Employer, and, Physician Assistant, Employee. TERMS OF AGREEMENT --, M.D., P.A. shall employ beginning,. The term of this agreement will be an indefinite period, commencing on,, but subject, however, to termination as hereinafter provided. This Agreement may be terminated prior to the end of any term by the Employee, only as follows: (a) (b) If the Employer breaches or defaults in the fulfillment of any provision of this Agreement, and if after thirty (30) days written notice by the Employee to the Employer, such breach or default has not been cured, Employee may terminate this Agreement. If the Employee wishes to terminate this Agreement for any other reason, he may also do so upon sixty (60) days written notice to the Employer. This Agreement may be terminated prior to the end of any term by the Employer, only as follows: (a) (b) If the Employee breaches or defaults in the fulfillment of any provision of this Agreement, and if after thirty (30) days written notice given by the Employer to the Employee such breach or default has not been cured, the Employer may terminate this Agreement. If any of the following acts occurs, Employee s employment may be terminated immediately: (1) Employee s license to practice as a Physician Assistant is the State of South Carolina is withdrawn or suspended; (2) Employee is held guilty of professional misconduct by any professional organization having jurisdiction; (3) Employee becomes bankrupt, insolvent, or makes an assignment for the
2 (c) benefit of creditors, or becomes subject to the administration of his assets in any kind of voluntary or involuntary creditors proceedings; (4) Employee is unable to obtain malpractice insurance for any reason without fault of Employer; (5) Employee is suspended from Medicare, Medicaid, or other government sponsored health programs under civil or criminal penalty provisions; (6) Employee performs any intentional act which damages the reputation or property of the Employer or interferes with the relationship between the Employer and its patients or employees. If any Employer wishes to terminate this Agreement for any other reason, it may do so upon sixty (60) days prior written notice. COMPENSATION AND BENEFITS Compensation Physician Assistant shall be paid for all services rendered according to the agreement in the Compensation Policy for Physician Assistant. Employee Benefits Physician Assistant may participate in employee benefits as provided, altered, and amended by the, M.D., P.A. Personnel Policy Manual. Vacation and Absences 1. During the Employee s first one year of employment under this Agreement, the Employee shall be entitled to two (2) weeks of vacation. For each additional one year of the Employee s employment under this Agreement, the Employee shall be entitled to three (3) weeks of vacation per year. Vacation time will not accrue from any one year term to another. The Employee will not be entitled to reimbursement for any unused vacation time. 2. The scheduling of vacations and other scheduled absences must be approved by Employer. The Employer shall have the right to establish a policy which specifies the rules applicable to the scheduling of vacations and other absences. Professional Dues and CME Expenses Physician Assistant shall be entitled, during the term of this Agreement, to five (5) days of paid time off per year to attend continuing education
3 seminars., M.D., P.A. acknowledges that membership in local, state, and national medical organizations is important for the purposes of continuing education and acceptance in the community. Therefore,, M.D., P.A. shall pay all expenses incident to maintaining Physician Assistant s membership in the S.C. Academy of Physician Assistants, S.C. Dermatological Association, American Academy of Physician Assistants, Society of Dermatology Physician Assistants and the NCCPA CME logging fees., M.D., P.A. shall pay all expenses (i.e., travel, meals, dues, lodging, etc.) up to Fifteen Hundred & 00/100 Dollars ($1,500.00) per year, incident to attending continuing medical education seminars as may be authorized and approved in advance by, M.D., P.A. In addition,, M.D., P.A. shall pay for one time fee of $500 for dermatology reference manual start up costs., M.D., P.A. shall pay all expenses related to state and federal licensure including State Board of Medical Examiners, DHEC, DEA fees. Additionally,, M.D., P.A. shall pay for reference Malpractice Insurance, M.D., P.A. shall pay for and maintain professional liability insurance coverage insuring, M.D., P.A. and Physician Assistant for medical malpractice with the limits of liability as deemed necessary in the sole discretion of, M.D., P.A. If professional liability is on a claims-made basis,, M.D., P.A. shall pay for tail coverage. Work Area and Support Staff: The Physician Assistant will be provided number of assistants and nurses to support him/her. In addition, the physician assistant will be provided with telecommunication services (computer, internet, phone) and private work area specifically set aside for his/her individual use. DUTIES AND RESPONSIBILITIES OF PHYSICIAN ASSISTANT 1. Physician Assistant Duties Physician Assistant acknowledges that certain rules and regulations must be established and maintained by, M.D., P.A. from time to time for the efficient operation of a quality medical practice. Physician Assistant therefore agrees that: (a) Physician Assistant is employed to practice as a physician assistant on behalf of, M.D., P.A.
4 (b) (c) (d) (e), M.D., P.A. shall have the sole authority to establish policies, procedures, and operational guidelines regarding the acceptance and treatment of patients of, M.D., P.A. in the diagnosis or treatment of any case in accordance with such guidelines. All work performed by Physician Assistant shall be subject to review by, M.D., P.A. in accordance with quality assurance, quality management and utilization review practices and/or procedures that may be established and modified from time to time by, M.D., P.A. Physician Assistant agrees to comply with the recommendation and requirements of any quality assurance, quality management, and utilization review practices and/or programs established by, M.D., P.A., M.D., P.A. shall have final authority over the schedule during which Physician Assistant shall perform his duties under this Agreement. Physician Assistant shall work full-time on behalf of, M.D., P.A. for an average of forty (40) hours per week. Physician Assistant shall complete, in a timely manner, all medical records on each patient treated and maintain the confidentiality of such records as required by federal and state laws and regulations. (f) Physician Assistant shall maintain good standing with respect to continuing education. 2. Exclusive Service Without express prior written consent, M.D., P.A., Physician Assistant shall not engage in professional work in his individual capacity or in association with others not employed by, M.D., P.A., nor receive any compensation thereof, with the exception of donated services or mission work. 3. Representations and Warranties of Physician Assistant Physician Assistant represents and warrants to, M.D., P.A., that: (a) Physician Assistant is duly licensed to practice as a physician assistant in the State of South Carolina, and Physician Assistant will maintain such license during the term of this Agreement; (b) Physician Assistant is not currently a party to any lawsuits and knows of no facts
5 which would cause Physician Assistant reasonably to believe that such an action would be filed. ADMINISTRATIVE MATTERS 1. Fees, Collection, and Billings:, M.D., P.A. shall establish and modify from time to time all professional fees for service rendered by Physician Assistant or any other employee of, M.D., P.A., M.D., P.A. shall bill and collect or cause the billing and collection of all practice revenues for professional services rendered by Physician Assistant., M.D., P.A. shall own and control all collections and billings arising pursuant to the rendering of medical services by Physician Assistant or any other employee of, M.D., P.A. All fees and compensation received or realized by, M.D., P.A. as a result of the rendering of services by Physician Assistant are hereby assigned by Physician Assistant to, M.D., P.A. and shall belong, be paid, and be delivered to, M.D., P.A. 2. Custodial Responsibility with Respect to Medical Records: Physician Assistant shall keep full and accurate records of all professional work done by Physician Assistant or under his supervision in a timely fashion in accordance with guidelines established by, M.D., P.A. All such medical records and patient histories are the exclusive property of, M.D., P.A. Physician Assistant holds such records in trust for, M.D., P.A. and shall promptly relinquish such record to, M.D., P.A. upon demand. The provision of this paragraph shall survive the termination or expiration of this Agreement for any reason. 3. Access to Records: Should legal arbitration be brought against in include the Physician Assistant, the Physician Assistant will have full access to all pertinent records
6 RESTRICTIVE COVENANT The parties stipulate, M.D., P.A. is engaged in the practice of providing dermatology services in the territory (as defined below). In consideration of the mutual covenants contained herein, the Physician Assistant agrees for the term of this Agreement and for a period of twelve (12) months after expiration or termination of this Agreement that: The Physician Assistant will not Compete (as defined below) with, M.D., P.A. The Physician Assistant will not engage in any Prohibited Contacts (as defined below). The provisions of this paragraph shall survive the expiration or termination of this Agreement for any reason. Definitions Compete means directly or indirectly assist any Person (as a director, officer, employee, agent, consultant, lender, independent contractor, lessor or otherwise) engaged in dermatology in the territory. Territory means a ten (10) mile radius surrounding the office occupied at,, SC 29. Prohibited Contacts shall refer to the solicitation, diversion or taking away of any patients of, M.D., P.A. The Physician Assistant will not be restricted from the practice of medical charity work, to include free clinics such as the C.A.R.E.S. clinic, the North Charleston Dream Center, and international medical mission trips. If employee is terminated by employer in good-standing, the restrictive convenant clause is void. COMPENSATION POLICY FOR PHYSICIAN ASSISTANT For services rendered by Physician Assistant under this agreement, the Employer shall pay Employee compensation of Seventy Thousand Dollars ($70,000) annually, which is Seventeen Thousand Five Hundred Dollars ($17,500) quarterly, to be paid bi-weekly according to Employee
7 Personnel Manual. In addition to the annual compensation, the Employee will participate in the bonus program. This agreement will be reviewed and adjusted quarterly along with the Physician Assistant s performance for the first year of employment. The bonus is calculated as 20% of the Employee s Net Receipts plus Dermatology Cosmetic Net Receipts minus base compensation. The bonus is paid quarterly. For the purposed of this Agreement, the term Employee s Net Receipts shall mean only those collections received by, M.D., P.A., doing business as Dermatology, which are directly related to Employee s performance and/or supervision of professional medical services. The Physician Assistant,, P.A., will be given accurate quarterly reports which include the total revenues billed and collected on behalf of the Physician Assistant ( Employee s Net Receipts ) during each quarter of three months, and this report shall not be delayed by more than one month after each quarter. The example following shows calculations based on net receipts of $100,000 in a given quarter: Quarterly Employee Net Receipts: $100,000 X 20% = $20,000 Minus quarterly base compensation - $17,500 Gross bonus amount = $2,500 For purposes of this Agreement, the term Dermatology Cosmetic Receipts shall mean those collections of Dermatology related to non-government payor payments for cosmetic related drugs, supplies, and devices reduced dollar or dollar by the costs incurred by Dermatology related to the following cosmetic drugs: Botox, Restylane, Sculptra, and any other similar cosmetic related products which are of high cost and produce low reimbursement to Dermatology and which are identified from time to time by Dermatology in writing, and provided to Employee. This compensation Agreement shall begin,. The Physician Assistant shall meet after six months of employment, and thereafter annually, with the president and supervising physician of Dermatology,, M.D., for a formal Evaluation. The Evaluation shall include discussion of the Physician Assistant s professional performance, clarification of any expectations and intentions, and negotiation of future compensation.
8 This Employment Agreement is accepted as written and signed on this day of, by, M.D. president of, M.D., P.A. and, Physician Assistant., M.D., P.A. By:, M.D., President Physician Assistant:
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