1. Phoenix Physician Services
“Physician Contract Negotiations –
From Recruitment to Retirement”
Presented by
Rochelle Glassman, President and CEO
3610 N. 44th
St. Ste 100
Phoenix, AZ 85018
602-685-9500
info@pps247.com
www.pps247.com

2. Rochelle Glassman Bio
• Rochelle Glassman is the founding partner of Phoenix Physician Services,
Inc. and a nationally recognized healthcare consultant. Rochelle brings
years of high-level experience in the healthcare field to our clients –
experience that has generated millions in revenue. Trained as an RN, Ms.
Glassman became CEO of a private practice in Beverly Hills that grew from
three physicians to more than 150 and became a nationally recognized
integrated multi-specialty practice.
• Ms. Glassman has achieved significant success stories within the
healthcare industry. She created a new line of business for one of
California’s largest HMO’s in workers compensation/occupational medicine
that increased market share and revenue by $50 million.
• For Anthem Health in Indianapolis, then the largest healthcare provider in
the United States, she developed the first capitalized specialty network in
the country.
• Ms Glassman also spearheaded the Healthy Baby program for CIGNA
Healthcare, which reduced the cost of pre-term deliveries across the country
and was an enormous marketing success.

3. Steps for a Successful Hire
Prior to the recruiting process:
Identify practice need
Identify type of Physician
Full or Part time
Expectations of new Physician
Salary, benefits, bonus structure
Employment and/or Partnership
Partnership with Hospital

4. Identify Practice Need
Complete a needs analysis
Discuss at Annual Strategic Planning
meeting (with
partners)
Cost of bringing on a Physician
Partner(s) approval

5. Physician Recruitment Process
One year hiring process from
identification to start date
Negotiate contractual terms
Legal review
Licensing
Healthplan credentialing and contracting
Hospital privileges
Hospital EMR training

6. Type of Physician & Hiring needs
Specialty
American or Foreign trained
Board Certified or Board Eligible
Full-time/ Part-time status
Numbers of days, patient hours,
weekends and call rotation per month
Office setting
office and/or hospital

7. Physician Expectations
Number of patients seen
Number of hours per work day
Number of work days per month
On-call schedule (emergency, hospital,
telephone)
Typical schedule
Patient charting, reading and signing off
Attire (business, scrubs, casual)
Administration requirements
Hospital
Practice

8. Practice Expectations
Provide office/dictation station
Lab coats
Clinical mentor for first year
Staff
Do they get their own MA?

9. Salary, Benefits, and Bonus
Base pay, who is paying; the practice or
the hospital?
Benefits
Medical, dental, vision
401k
Cell phone/pager/internet
Gas/mileage reimbursement
License, dues and publications
CME
Relocation
Vacation
Bonus - type of bonus structure?

10. Employment or Partnership?
Employment Term
Partnership
Criteria for Partnership
Buy-in Terms

11. Employment Agreement for a
Partner
Similar to employed (non-owner)
Physician
May have additional benefits
Must have same conditions as bylaws of
Corporation

12. Partnership with Hospital
Based on community needs
Recruitment assistance
Hospital allowance
Salary guarantee
Forgiven loan
Service area
Length of contract
2 years; 3 years; 4 years

13. Managing the Employment Process
Organization is key, remember the
candidate is interviewing you as well
Establish interview process
Identification of potential candidates
The interview
Candidate selection

14. Employment Contract
Information to include:
Licensing requirements for State
What type of medicine
Type of employment
Facilities expected to work in
Term of contract (prior to start date)
State licensing requirements
Hospital privileges
Participation in at least 80% of insurance plans
employer participates in

15. Term of Employment Contract….
Contract term
Is the contract self renewing?
Termination notice “not for cause”
Termination notice “for cause”
Payment through last day of notice
Disciplinary board action-limiting scope of
practice
Notice period (90 days;120 days;180 days, etc)

16. Term of Employment Contract….
Base pay and bonus program
Revenues
Medical records
Expenses
Termination pay
Nature and extent of services
Working facilities
Vacation
Insurance

17. Term of Employment Contract….
Tail insurance
Non-solicitation/non-compete
Future relationship of parties
Assignment of agreement
Binding
Representation by council
Severability
Venue- practicing state
Governing law

18. Partnership
What does this mean?
Define partnership
Define responsibilities
Partnership eligibility
1 year review period, extend employment if not meeting
expectations

19. Partnership – frequently asked
questions
What are the costs?
What is being purchased (goodwill,
depreciated assets)
The buy-in (examine debt and liability)
What decision making authority will I have
as a Partner?

20. Contracts related to Partnership
Buy/sell agreement
Bylaws of the Corporation
Articles of Organization
May have different contracts for LLCs
Employment agreement – terms of
employment

21. Buy/Sell Agreement
This agreement details the terms for
buying and selling the shares of the
practice.
Purchasing of the stock
What is the Practice worth?
What are we buying?
Is there a payment plan?
Sale of the stock

22. Terminating Events
Death
Disability or Insanity
Divorce
Conflict of interest
Suspension of shareholders license
Expulsion of shareholder
Retirement
How to handle payments? (purchase price upon
termination, death of simultaneous partners, deferred
payment terms)

23. Bylaw Agreement
These are the formal Corporate policies
required to run a corporation.
Who are the officers?
Shareholder meetings
List of shareholders, number of their shares
they hold, and entitlement to vote
Notice of special meetings of shareholders
Quorum and Adjournment
Ability to vote by proxy

24. Bylaw Agreement
Shareholder check signing authority
What are the policies?
One signature or two signatures based on the amount
Indemnification
Insurance
Ownership of policies
Duties of Trustee

25. Bylaws….
Majority vote required usually to terminate
a partner
Voting – Each shareholder usually has
one vote
Elections - Annual
Officers (Chairman, Secretary, Treasurer , Vice
Chair)

26. Retirement- Exit Strategy
Group Practice
Provide one year written notice to Partners in order to provide
for replacement physician.
Sale of stock
Sale of ownership in building (separate LLC)
Sale of stock in equipment (leasing company)
Solo Practice
Sell Practice
Hire employed Physician for a one year period with
expectations of selling practice.
Hire Physician as employee/management, stay on as Medical
Director and collect income
Sale of building (separate LLC)
Sale of leasing company equipment

27. Thank you for your time today. If
you have any questions please feel
free to stop by the
Phoenix Physician Service’s Booth
“Helping You Profit From Your
Success”