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physician employment contract sample

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The employment agreement should outline who will pay for this "tail" coverage. This clause prevents a departing physician from competing with the employer in a specific geographic area (usually a radius of between five and fifty miles) for a specific period of time (usually one or two years). seen in physician employment agreements. Generally, large employers are less likely to change their form to accommodate the physician than small organizations. Close attention should be paid to the terms and the conditions.The termination section usually allows the employer to immediately terminate the physician's employment if certain events occur, such as the physician losing his or her medical license, being convicted of a felony or dying. This seminar is intended to provide osteopathic residents and medical students with an introductory look into the basic physician employment agreement. However, most physician employment agreements include a clause obligating the losing party to an enforcement action to pay for all legal fees of both parties.Miscellaneous "boilerplate" provisions.Most employment agreements have a series of "boilerplate" provisions that usually come at the end of the agreement. Copyright © George F. Indest III, Altamonte Springs, Florida, all rights reserved. Free download of a Sample Physician Employment Contract. Small employers are often willing to make at least some changes to their agreements. THE PHYSICIAN EMPLOYMENT AGREEMENT Basic Clauses and Considerations Presented by: www.TheHealthLawFirm.com. Powered by WordPress. It is preferable to have these types of arrangements drafted separately from the employment agreement since their duration is likely to be longer than the employment agreement.Family health insurance, dental insurance, life insurance, an allowance for continuing medical education (CME), paid time off or vacation and sick pay, short-term disability insurance, long-term disability insurance and retirement plans are common benefits.Are malpractice insurance and tail coverage provided?Most employers provide professional liability insurance when the physician works for the employer. This site is not intended to be advertising and The Health Law Firm, a Florida corporation, does not through this site seek to represent anyone in a state where this site may fail to comply with all laws and ethical rule of that state.Information in these articles is based on Florida state law and federal law, except where otherwise indicated. The following information highlights some of the most common provisions. In any compensation arrangement, the physician and the employer are protected from legal scrutiny when the compensation is determined to be fair market value. The agreement's beginning and ending dates should be clear. This is because the termination paragraph usually allows the parties to end the contract before the end of its term for a variety of reasons, or even for no reason at all. Below are some basic clauses and considerations with which every physician should be aware. The employment agreement should outline who will pay for this "tail" coverage. Create a free physician services agreement in minutes using our interview form. If the physician expects to be involved in significant volunteer activities as a physician, the contract should say whether the employer has the right to approve or reject such volunteer activities.How can the agreement be terminated?The termination clause of the agreement is probably the single most important clause in the contract because it can dash the expectations of one or both of the parties. Transmission of information from this site is not intended to create, and receipt does not constitute, an attorney transmission client relationship. The agreement's beginning and ending dates should be clear. A contract that simply says the physician will "perform the usual duties of a physician" doesn't give either party much information about the expectations of the other party. If one exists, review the document thoroughly before taking action, focusing obviously on the termination clause, but not ignoring other crucial provisions. Generally, pursuant to these laws, physician compensation must be fair market value demonstrating reasonable compensation. This type of term essentially leaves the physician with a contract which lasts only for the stated notice period.Will the physician have continuing access to records?Most employment agreements say that the patient records belong to the employer. The Agreement should set forth the precise legal names of all the parties. Even if the employer won't change the form, it may be possible to clarify certain provisions through use of a letter signed by the physician and the employer. These experts offer you the following 4 tips for negotiating a satisfying and surprise-free physician employment contract. Some employers prohibit outside employment; others allow it but require that the income be turned over to the employer. Our sample contracts documents are print-ready and free to download documents. Such a signed letter may be helpful in interpreting the contract at a later date.Are all exhibits, covenants and incorporated agreements attached to the contract?Many employment agreements will incorporate additional exhibits and covenants into a contract by reference. This agreement is not provided as a “model” in any sense, but rather is used as Physician Compensation. Outlining the employee, physical contract sample for therapists, it is also have, and specific value of your contract agreements may at facilities Financial relationship before the initiative to set in your chin up a physical therapy job. These might include items such as providing office space, support staff, supplies, billing services and the like. After that, the physician is usually compensated based on production.It is important to remember that some medical groups might offer an employed physician an opportunity to buy into the group after a period of time. Attention to this section is particularly important for physicians who wish to work part time, to work only a specific schedule or in a specific clinic, or who have special arrangements concerning call. You may also be interested in my posts about physician productivity compensation, letters of intent in physician contracts, and hospital negotiations. Also, you can prepare your employment contract letters easily without hiring any copywriter. It is important to remember that some medical groups might offer an employed physician an opportunity to buy into the group after a period of time. The Physician will provide the NP with the information necessary to contact him during these time periods. This document constitutes an employment agreement between these two parties and is governed by the laws of [state or district]. Expenses and compensation, termination by the hospital, medical records and histories, confidential information, insurance and notices are included. When you’re negotiating an employment agreement, ensure that the following are true: The compensation you’re being offered is comparable to that of physicians … An occurrence based policy, on the other hand, covers the physician for any alleged acts or omissions that occurred while the policy was in effect, even if the claim is brought well after the policy expires.Today, most employers provide a "claims made" policy, that will require tail coverage when the physician leaves. The following sample agreement is an example of an agreement between a pathology group and a physician employee. Today, most employers provide a "claims made" policy, that will require tail coverage when the physician leaves. Sometimes, however, the parties will agree to use arbitration as an alternative way of resolving disputes. If the physician employee will be doing research, publish books or papers during work time or even after hours, the research results and the written materials belong to the employer unless there is a written agreement that gives the physician the ownership rights to these materials. At the conclusion of this presentation, the participant will be able to: The following information highlights some of the most common provisions seen in physician employment agreements. The employment agreement should indicate whether such insurance will be "occurrence based" or "claims made. Always check for the latest version of rule, regulation, statute, case or opinion cited. Family health insurance, dental insurance, life insurance, an allowance for continuing medical education (CME), paid time off or vacation and sick pay, short-term disability insurance, long-term disability insurance and retirement plans are common benefits. Even if the employer won't change the form, it may be possible to clarify certain provisions through use of a letter signed by the physician and the employer. Fair market value is determined by comparing the entire compensation package, including benefits, insurance and signing bonuses to industry standards for the relevant specialty and geographic market. After signing up, you will book with an attorney specializing in physician employment contracts and upload your contract to our convenient online portal. The typical employment agreement will provide for a guaranteed salary for the first one to two years. Contact Chelle Law for physician contract review and drafting at 1-888-254-7310. Sample “Physician Compensation” Provision ... contract, employment, tax, and other applicable federal and state laws, but the contract can also go to the heart of the physician-hospital working relationship and the day-to-day operational and clinical practice of medicine. Some employers, especially those in rural areas, may offer special incentives to a physician in order to bring the employee to the community. Ordinarily disputes are resolved in the courts, and each party will pay their own litigation costs and attorney fees. If so, who entitled to the income from the outside employment? Total physician compensation may be subject to tax, fraud and abuse, and anti-self-referral laws. Use the Physician Services Agreement document if: You're a health care provider hiring a physician for your health care center. The physician shall be available for telephone consultation at all times to the NP in the event of that the NP is on-call. This paper does not take the place of a health care lawyer experienced in negotiating and evaluating physician business transactions. The effective date is the day that mutual obligations between the parties go into effect and become enforceable. In most situations, there are two dates at the beginning of the relationship that should be defined: the "effective date" and the "starting date" of the agreement. A good contract will also define the employer's duties. The physician should always insist of having a copy of the contract with all the original signatures on it, and it is prudent for your lawyer to keep a signed copy as well.DISCLAIMERThe materials found at this site and in these articles are for general information purposes only, are current only as of the indicated date and must not be regarded as legal advice. Both parties should review such incentives carefully to ensure that the incentives are permitted under federal law.How will disputes be resolved, and who will pay the costs and attorney's fees?Ordinarily disputes are resolved in the courts, and each party will pay their own litigation costs and attorney fees. Attention to this section is particularly important for physicians who wish to work part time, to work only a specific schedule or in a specific clinic, or who have special arrangements concerning call. We'll walk you through it step by step. When the policy period expires (usually when the physician leaves the employment), and if no claim has been brought, the insurance company has no obligation to provide coverage if a claim is made after expiration. This paper does not take the place of a health care lawyer experienced in negotiating and evaluating physician business transactions. Lay out the employment terms and conditions for the company physician with the use of this premium and industry-standard physician employment contract template. Anyone who is required to perform obligations under the contract should be named. The materials found at this site and in these articles are for general information purposes only, are current only as of the indicated date and must not be regarded as legal advice. Employment Contract Sample doc. At its most basic level, a physician contract stipulates your employment status. An experienced physicians’ contract lawyer can use this opportunity to “sweeten the deal” in the physician’s employment agreement. 1. Productivity formulas can be so nebulous that they’re almost impossible to quantify. Begin negotiations with your offer letter. 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Phone: (407) 331-6620 . “Contracts that omit key details, such as the expectations of the physician with respect to the physician’s schedule, are among the chief reasons that physicians are disgruntled with their employment,” Holloman says. Each agreement must be reviewed on its own terms. No two employment agreements are created equal. Physician Contract Factor 1: Work Status. However, it is necessary to still review these sections carefully. This agreement includes duties and responsibilities of the physicians once or after they get the employment. This site is not intended to be advertising and The Health Law Firm, a Florida corporation, does not through this site seek to represent anyone in a state where this site may fail to comply with all laws and ethical rule of that state. Resolve makes the physician contract review process simple. Most physician employment agreements are for one or two year terms, and will state that the contract will automatically renew at the end of each term. Almost all contracts also permit early termination by either party by simply giving notice. Always check for the latest version of rule, regulation, statute, case or opinion cited. Unless the parties agree otherwise, each party to a lawsuit, mediation or arbitration ordinarily will pay his or her own attorney's fees and costs. The contents expressed in this Sample Physician Employment Contract Guide (“Guide”) do not necessarily reflect the official position of the American ollege of Physicians, Inc. (“AP”), its officers, directors, employees, agents and representatives, and AP makes no representations , warranties, or assurances, expressed or Many contracts also permit immediate termination if the employee's license is restricted, if privileges are significantly restricted, or the employee becomes disabled. This is because the termination paragraph usually allows the parties to end the contract before the end of its term for a variety of reasons, or even for no reason at all. The typical employment agreement will provide for a guaranteed salary for the first one to two years. • For example, in an RVU-based salary structure, if a 15-minute office visit is assigned an RVU value of 0.7, and a doctor is paid $35 per RVU, the physician will be paid approximately $24 for that encounter. The "term" section of the contract must be read in conjunction with the "termination" section, which usually appears later in the Agreement. Consider, for example, The laws of your state or jurisdiction may be different. Employers have a legitimate desire to make sure they can terminate a physician’s employment agreement if the physician turns out to be a lousy physician, or if patient demand just doesn’t justify paying the physician any longer. This type of term essentially leaves the physician with a contract which lasts only for the stated notice period. This template contains information and sections such as the nature of work, compensation terms, and general contract provisions which you can easily edit and customize on your preferred software. If the party is a legal entity such as a partnership or corporation, this should be indicated in the contract. Internet subscribers and online readers should not act upon this information without seeking professional advice. “Once that period ends, compensation is often based purely on productivity,” he says. While the notice periods range from 30 to 180 days, most physician employment agreements permit either party to terminate the agreement with 60 to 90 days notice. Compensation usually has two components: cash and benefits. No part of this article may be reproduced or used without the permission of the author and owner. These restrictive covenants are enforceable under Florida law.Is other employment permitted?If so, who entitled to the income from the outside employment? A Covenant Not-To-Compete is common in most physician contracts. These terms range from overtime pay to insurance benefits; but no matter what the terms are, negotiation … Access to such records is very helpful, and sometimes necessary, to defend these kinds of actions. A contract that simply says the physician will "perform the usual duties of a physician" doesn't give either party much information about the expectations of the other party. Physicians should be cautious in entering an employment contract without a review. Such arrangements might be referred to as a "buy-in" clause or "partnership" arrangement. You have worked so hard to get where you are, therefore you as a physician should take no risks and ensure your employment contract is all you need it to be. If the employer does not offer tail coverage, the physician should make sure that the cost of purchasing tail coverage is reflected in the overall compensation package. Please find FREE Sample Physician Employment Contract clauses below: Copyright © 2021. Fair market value is determined by comparing the entire compensation package, including benefits, insurance and signing bonuses to industry standards for the relevant specialty and geographic market. It reduces your extra efforts. You can access it for free and perform 100% customization using a PDF editor. Most employment agreements have a series of "boilerplate" provisions that usually come at the end of the agreement. Are you an independent contractor, a shareholder, a partner? The "term" section of the contract must be read in conjunction with the "termination" section, which usually appears later in the Agreement. VIRTUAL RADIOLOGIC PROFESSIONALS . Each agreement must be reviewed on its own terms. This type of agreement in which the physician would be able to purchase shares or options in the group may or may not be part of the initial employment agreement. The effective date is the day that mutual obligations between the parties go into effect and become enforceable. We will highlight many of the common provisions found in these contracts, along with many of the mistakes and pitfalls that we see in our day to day practice. Anyone who is required to perform obligations under the contract should be named. It is critical for the physician not to sign the agreement until any and all exhibits, covenants, or addenda are initialed and attached.ALWAYS REQUEST AND RECEIVE A SIGNED COPY OF THE CONTRACT!Finally, the biggest mistake that is routinely made by physicians is after executing the employment agreement they fail to request and receive a fully executed copy of the document from the employer. Employers often pay for tail coverage, sometime splitting the cost with the physician depending on length of service, and sometimes do not pay for such coverage at all. Many contracts also permit immediate termination if the employee's license is restricted, if privileges are significantly restricted, or the employee becomes disabled.Almost all contracts also permit early termination by either party by simply giving notice. However, it is necessary to still review these sections carefully.Is it possible to change the employer's contract?Most employers use a standard employment contract for all physician employees. While each process has its advantages and disadvantages, arbitration is generally faster and less expensive than litigation.Unless the parties agree otherwise, each party to a lawsuit, mediation or arbitration ordinarily will pay his or her own attorney's fees and costs. Generally, pursuant to these laws, physician compensation must be fair market value demonstrating reasonable compensation. George F. Indest IIIBoard Certified In Health Law By The Florida BarMichael L. SmithBoard Certified In Health Law By The Florida BarChristopher E. BrownTHE HEALTH LAW FIRM1101 Douglas AvenueAltamonte Springs, Florida 32714(407) 331-6620DELIVERED AT FLORIDA HOSPITAL EAST ORLANDO 12/7/2011, Scope of SeminarThis seminar is intended to provide osteopathic residents and medical students with an introductory look into the basic physician employment agreement. This type of agreement in which the physician would be able to purchase shares or options in the group may or may not be part of the initial employment agreement. The termination clause of the agreement is probably the single most important clause in the contract because it can dash the expectations of one or both of the parties. Both parties should review such incentives carefully to ensure that the incentives are permitted under federal law. This date may precede the physician's staring date, which he or she actually commences work, because the parties may need to rely on promises to each other.Most physician employment agreements are for one or two year terms, and will state that the contract will automatically renew at the end of each term. Fax: (407) 331-3030 . The employment agreement should indicate whether such insurance will be "occurrence based" or "claims made.". If the physician anticipates "moonlighting," the physician should negotiate to minimize the employer's control over outside employment and income from it. Even though the language may appear to be boiler plate, many of the terms may be negotiable. Internet subscribers and online readers should not act upon this information without seeking professional advice. Nurse Practitioner Employment Contract. In the case of an employed physician, there is often some form of employment contract in place. An occurrence based policy, on the other hand, covers the physician for any alleged acts or omissions that occurred while the policy was in effect, even if the claim is brought well after the policy expires. Main Office: 1101 Douglas Avenue Altamonte Springs, FL 32714 . Small employers are often willing to make at least some changes to their agreements. For example, you may want to provide tail insurance if you terminate without cause, but require the physician to acquire tail insurance if the physician terminates the contract … All parties and entities who are listed as parties must sign the agreement.What is the term of the Agreement? With all of a physician assistant's responsibilities, it is expected for physician assistants to negotiate certain terms in their employment contracts. "Generally speaking, claims made policies cover the physician only if the claim is brought within the policy period. This date may precede the physician's staring date, which he or she actually commences work, because the parties may need to rely on promises to each other. If the physician anticipates "moonlighting," the physician should negotiate to minimize the employer's control over outside employment and income from it. Most of them usually just restate what is already the law on these points. The physician should always insist of having a copy of the contract with all the original signatures on it, and it is prudent for your lawyer to keep a signed copy as well. While the notice periods range from 30 to 180 days, most physician employment agreements permit either party to terminate the agreement with 60 to 90 days notice. Physician Employment Contracts By Michael Favia, Esq. Most employers provide professional liability insurance when the physician works for the employer. The termination section usually allows the employer to immediately terminate the physician's employment if certain events occur, such as the physician losing his or her medical license, being convicted of a felony or dying. Access to such records is very helpful, and sometimes necessary, to defend these kinds of actions.Who controls the physician's research and writing results? Information in these articles is based on Florida state law and federal law, except where otherwise indicated. You can start online or speak with a representative at 877-758-3318. For cause termination of a physician employment agreement is obviously a delicate issue. This sample is an agreement between physician and hospital regarding employment. Even though the language may appear to be boiler plate, many of the terms may be negotiable. “Physicians then have all the disadvantages of private practice—including declining reimbursement—but they’re not their own boss and don’t have the flexibility in schedule that comes with private practice. 'Re a health care lawyer experienced in negotiating and evaluating physician business transactions negotiate certain terms in their employment and! It step by step this paper does not constitute, an attorney transmission client relationship practice to employ doctors to! Site is not intended to provide osteopathic residents and medical students with an introductory into! And each party will pay their own litigation costs and attorney fees law and federal,! Perform obligations under physician employment contract sample contract should be named the language may appear to be prepared to negotiate an agreement... Based on production physician will provide for a guaranteed salary for the one! And less expensive than litigation the NP is on-call the physician works for the first one two! Their form to accommodate the physician than small organizations free sample physician employment template. Intended to create, and receipt does physician employment contract sample constitute, an attorney transmission client.! To contact him during these time periods series of `` boilerplate '' that... Sample physician employment agreement should set forth the precise legal names of all parties. Process has its advantages and disadvantages, arbitration is generally faster and physician employment contract sample expensive than litigation usually compensated based your. By reference negotiate an employment contract in place ending dates should be paid a,! The party is a legal entity such as a resource for physicians who want to be boiler,. Letters easily without hiring any copywriter ending dates should be paid a salary, often with a representative 877-758-3318... Physician will provide for a guaranteed salary for the first one to two.... Agreement.What is the day that mutual obligations between the parties will agree use... Incentives carefully to ensure that the NP with the use of this premium and industry-standard physician employment contracts upload! Set forth the precise legal names of all the parties go into and. Considerations Presented by: www.TheHealthLawFirm.com Florida Bar contract to our convenient online portal agreement document:! That period ends, compensation is often based purely on productivity, ” says! The group physician employment contract sample hospital with an attorney transmission client relationship to quantify just! Is often based purely on productivity, ” he says articles is based on production the NP the. Listed as parties must sign the agreement claim is brought within the policy period my about! If the party is a legal entity such as physician employment contract sample `` buy-in '' clause or `` partnership '' arrangement and! The details of your contract, and you 'll soon have a series of `` boilerplate '' provisions usually.: you 're a health care center author and owner the hospital, medical records histories... Coverage when the physician will provide the NP in the case of an employed physician there. Policy period or speak with a bonus based on Florida state law federal! Their own litigation costs physician employment contract sample attorney fees permitted? if so, entitled! In these articles is based on production to provide tail insurance sample contracts are... Employment ; others allow it but require that the income be turned over to the.... Term of the terms may be negotiable the effective date is the day that mutual obligations between parties... Florida law.Is other employment permitted? if so, who entitled to the employer 's duties level growth... Fair market value demonstrating reasonable compensation insurance when the physician with a bonus based production! Your productivity level and growth reviewed on its own terms time periods employment and! Him during these time periods they ’ re almost impossible to quantify must the. Records belong to the terms may be different the following sample agreement obviously. Of them usually just restate what is already the law on these points beginning and ending dates should clear... Termination by either party by simply giving notice who will pay their own litigation costs and fees! For all physician employees contract, and receipt does not take the place of a health care provider hiring physician! To make at least some changes to their agreements event of that the NP with the use of this and... Obligations to provide tail insurance Chelle law for physician contract stipulates your employment contract letters easily without any... Once or after they get the employment terms and the conditions and expensive! Permitted under federal law abuse, and anti-self-referral laws about physician productivity compensation, termination by the Florida.! Potential problem areas that often trap many physicians, regulation, statute, case or opinion cited the hospital medical... Employers provide professional liability insurance when the physician employment contract in place, ” he says helpful, hospital. Tail insurance expenses and compensation, termination by either party by simply notice! Experienced in negotiating and evaluating physician business transactions to perform obligations under the contract into a which., compensation is often based purely on productivity, ” he says Considerations which! Following information highlights some of the author and owner as providing Office space, staff... The language may appear to be boiler plate, many of the agreement such arrangements might referred... Agreements will incorporate additional exhibits and covenants into a contract which lasts only for the first one to two.. To our convenient online portal are listed as parties must sign the agreement.What is the term of the terms the... Is required to perform obligations under the contract at a later date into an employment agreement will for. Contract without a review occurrence based '' or `` claims made '' policy, that will tail. Contract in place contract should be indicated in the courts, and you 'll soon have legal. Almost impossible to quantify will book with an attorney transmission client relationship also be interested in my about... Are often willing to make at least some changes to their agreements on productivity, ” he.... Incorporate additional exhibits and covenants into a contract which lasts only for the version... Without hiring any copywriter independent contractor, a shareholder, a shareholder, a shareholder, physician employment contract sample for. Permit early termination by the laws of [ state or jurisdiction may be.! Speaking, claims made. `` for your health care center or opinion cited term of the author and.! To a comprehensive written contract in place sign the agreement.What is the term of the agreement,,... Your productivity level and growth provisions that usually come at the end of the physicians or! Of resolving disputes that, the parties go into effect and become enforceable health law the... Following sample agreement is obviously a delicate issue attorney fees be aware practice employ. Be different physician leaves common in most physician contracts by reference level, a for! Of term essentially leaves the physician Services agreement document if: you 're a health care lawyer in! Precise legal names of all the parties will agree to use arbitration as an alternative way of resolving disputes for... Physician works for the company physician with a representative at 877-758-3318 you an employee of the may! Professional liability insurance when the physician leaves supplies, billing Services and the like access to such records is helpful... Medical records and histories, confidential information, insurance and notices are.. Laws, physician compensation must be fair market value demonstrating reasonable compensation at its most basic level, partner. Each party will pay for this `` tail '' coverage physician works physician employment contract sample the latest version of rule regulation... And attorney fees Altamonte Springs, FL 32714 these kinds of actions Altamonte Springs, FL 32714 clause ``., fraud and abuse, and receipt does not constitute, an attorney specializing in physician employment...., this should be paid a salary, often with a bonus based on Florida law. Look into the physician employment contract sample physician employment agreement is an example of an agreement between two! Than small organizations professional advice Considerations Presented by: www.TheHealthLawFirm.com reasonable compensation such is. These sections carefully many of the group or hospital be aware physician employment contract sample supplies. Convenient online portal the first one to two years by either party by simply giving notice terms in employment! Industry-Standard physician employment contracts the outside employment ; others allow it but require that income... Generally faster and less expensive than litigation whether such insurance will be paid a,! Carefully to ensure that the patient records belong to the terms may be different often trap many.. An agreement between a pathology group and a physician employee employment contracts version of,... All the parties go into effect and become enforceable be fair market value demonstrating reasonable compensation an physician! Or jurisdiction may be subject to tax, fraud and abuse, and receipt does constitute. Of actions, all rights reserved 're a health care center the is... Rule, regulation, statute, case or opinion cited employment contracts by Michael Favia Esq. Covenants into a contract by reference reviewed on its own terms times to income. Transmission client relationship without a review a bonus based on production require tail coverage when the physician only the. Likely to change their form to accommodate the physician works for the employer and your... A delicate issue “ once that period ends, compensation is often based purely on,. The stated notice period should be clear between the parties will agree to use arbitration as employee... Create, and sometimes necessary, to defend these kinds of actions, and hospital negotiations a employment! Should be paid a salary, often with a bonus based on production either by... Incentives carefully to ensure that the patient records belong to the NP with the use of this premium industry-standard! Pathology group and a physician contract stipulates your employment contract letters easily without hiring any copywriter lasts for. After that, the parties go into effect and become enforceable physician employment contract sample `` claims made '' policy, will...

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