Re: seeking contract advice re: no compete clause
From: art fougner, md (evsono@pipeline.com)
Thu Dec 17 07:57:26 1998
a couple of points.
first - we all know the 'users' - the guys who hire a 'newbie,' work
him/her to death for the salaried period then discard him/her when the
partnership talks begin. That's not terribly fair either.
second - baseball used to have a 'reserve clause.' restraint of trade is
restraint of trade no matter how you slice it. the new guy takes a risk
when joins you that you won't throw him out at the end of the salary
time and you take a risk that he won't leave. that's the biz. of
course local regs and precedents apply. that's what keeps contract
lawyers in the game. now, if we could be equally sagacious in our
dealings with regulatory bodies and insurance companies ...
SIGH!
Art
a Happy and a Merry to all
At Wed, 16 Dec 1998, Mark Perloe wrote:
>
>Yet what about the MD who joins the practice with no intent to stay. For
>one to two years, the salary is supported while new MD develops ties to
>referring physicians while the salary is supported. After the new MD
>develops a good reputation and develops a sufficient income, (s)he decides
>to go open an office siphoning off referrals and patients from the
>supporting practice.
>
>There needs to be a better way to protect the joining physician and
>insuring that the hiring MD is not paying to support future competition.
>
>At 08:40 PM 12/15/98 -0600, you wrote:
>>I signed such a contract 2 years ago even though I don't believe in
>>them. How can you restrict one's right to earn a living? How can you
>>force someone to leave c community that their family has grown
>>accustomed to? A person should be free to leave if they are not happy.
>>My attorney had advised me that these clauses are difficult to enforce
>>"under the best of circumstances". BRAVO.
>>>
>>>I believe there is some legal precedent to non-compete contracts. I
>>>remember the case of Joel Hyatt attempting to get his lawyers to sign such a
>>>contract. The case went to court and I believe he lost because of antitrust
>>>laws. I'd consult an attorney who could quikly look up prior court cases
>>>regarding this subject and advise you accordingly. I signed such a contract
>>>five years ago and I'll never do it again. This is suppose to be a free
>>>country and capitalism prevails.
>>>
>>>JP Miller miller@txk.com
>>>-----Original Message-----
>>>From: William D. McIntosh, MD <wdmcintoshmd@pol.net>
>>>To: Multiple recipients of list <ob-gyn-l@talk.obgyn.net>
>>>Date: Saturday, December 12, 1998 2:29 PM
>>>Subject: Re: seeking contract advice re: no compete clause
>>>
>>>>Bonnie Baird wrote:
>>>>>
>>>>> Hi Everyone,
>>>>> I have to sign my contract on Monday with the local clinic. (Yippee,
>>>finally
>>>>> got a job after grad school :)) It is a general health care provider
>>>>> contract, i.e. MD, NP, or PA. There is a no compete clause that
>>>prohibits
>>>>> me from working in the area for 2 years if I either quit or am
>>>terminated.
>>>>> (sounds so deadly don't you think LOL). I really have no desire to open
>>>my
>>>>> own practice and this clause would prohibit me from working for another
>>>>> practice if the clinic fires me. Any suggestions? Also, are there any
>>>other
>>>>> things I should be on the lookout for in the contract. Thanks for any
>>>>> advice.
>>>>> Bonnie Baird ARNP
>>>>> Bradenton, FL
>>>>
>>>>I have a non-complete clause in my contract. I confess, this was a
>>>>stumbling block for me, but I joined a 50 physician, physician owned,
>>>>multi-speciality group. All of us have signed such a clause. It cost
>>>>my group >$250,000 to start my practice from scratch (we had no OB/GYN
>>>>service prior to that time). This is serious money by anyone's
>>>>standards. I am on our recruiting comittee, and I can tell you that
>>>>each and every doctor we add costs at least $100,000 before they begin
>>>>to break even. If such a doctor felt free to leave at any time, and
>>>>start a practice across the street, we would never be able to survive.
>>>>I see it not as a prenup, but rather as the marriage vow itself, ie
>>>>"forsaking all others". It is a hard commitment to the group that
>>>>cannot be undone lightly. It makes the group more interested in working
>>>>things out than just raiding the assests and splintering.
>>>>
>>>>I would not have signed any such contract if not for the fact that every
>>>>single one of us is in the same boat, from the most senior partner to
>>>>the newest associate just out of residency.
>>>>
>>>>William D. McIntosh, MD
>>>>Clarksville, TN
>>
>--
>Mark Perloe, M.D. 285 Boulevard NE, Suite 320, Atlanta, GA 30312 404-265-3662
>Visit our chatroom at http://www.ivf.com/chat.html Mon 8:00-9:30pm ET
>
--
art fougner, md
SonoScan/Genetic Sciences
forest hills, ny
evsono@pipeline.com
