During a routine review of the employment agreement for a physician group client, SilverStone Group discovered that the agreement did not properly address how tail coverage would operate when a physician left the practice.
Our Healthcare Team immediately arranged a half-day meeting with the law firm that represented the group, to review the employment agreement and help formulate solutions.
Working in partnership with SilverStone Group, the law firm redesigned the employment agreement to address the issue regarding tail coverage. This action eliminated a significant cost for the physician group. Other negative employment scenarios were also identified and subsequently addressed in the agreement, further reducing the practice’s risk of an exposure.
Also included in the agreement was a unique clause wherein a physician’s malpractice insurance could become cost prohibitive based on the revenue produced by the physician. Addressing and resolving this issue eliminated another potentially large liability for the group.
The physician’s group outcome was quite positive, as evidenced by a significantly lower risk profile. Additionally, the legal firm benefited from the experience by utilizing the strategies learned for similarly situated groups.