A Locum Tenens Agreement Example

PHYSICIAN CONTRACT FOR LOCUM TENENS PHYSICIAN SERVICES

(For services to a GOVERNMENT client)

AGREEMENT made this day of  “Date” , between TOP DOCS, INC, hereinafter called “TOP DOCS” and   “First_Name”   “Last_Name” ,  “MD” ,   “Address_Line_1” ,  “Address_Line_2” ,   “City” ,  “State”    “ZIP_Code” , hereinafter called “PHYSICIAN”.  PHYSICIAN’S Social Security Number or Taxpayer Identification Number is  “Social_Security_Number” ; PHYSICIAN’S D.E.A. Number is  “DEA_Number” .

WHEREAS, TOP DOCS is in the business of placing qualified physicians with health care providers and/or health care facilities, hereinafter referred to in this Contract as “Client”, on a temporary placement basis, referred to in this Contract as locum tenens physician services; and

WHEREAS, TOP DOCS is also in the business of permanently placing physicians with health care providers and health care facilities when such placement is desirable and possible; and

WHEREAS, PHYSICIAN represents that he or she is a health care provider  who is duly educated and qualified to engage in the practice of medicine, holds a degree of either Medical Doctor or Doctor of Osteopathy,  and is licensed to practice medicine and for the provision of locum tenens physician services; and

WHEREAS, TOP DOCS desires to retain the professional services of PHYSICIAN through contract for the purpose of providing qualified and competent locum tenens physician services to hospitals, clinics, and/or other health care providers under separate contract for physician services; and

WHEREAS, PHYSICIAN desires to enter into a contract to provide locum tenens physician services to hospitals, clinics, and/or other health care providers under contract with TOP DOCS;

NOW, THEREFORE, in consideration of their mutual promises made herein, and for other good and valuable consideration, the parties, intending to be legally bound, hereby agree as follows:

1.    Recitals.  The parties agree that the foregoing recitals are true and correct and are incorporated into this Contract by reference.  TOP DOCS specifically relies in good faith on all representations made by PHYSICIAN regarding PHYSICIAN’S qualifications, knowledge, skills, abilities, education, credentials, and licensure.

2.    Physician Coverage.  PHYSICIAN will provide  “Specialty”  physician coverage from  “Coverage_Date_From”  to  “Coverage_Date_To” , at TOP DOCS Client:  “Client” ,  “Client_Address_Line_1” ,  “Client_Address_Line_2”   “Client_City” ,  “Client_State”   “Client_Zip_Code” .

Make sure you know the exact coverage dates.  Some times they want a contract signed with tentative dates (to start credentialing) and then will add an addendum when final dates are confirmed (confirm this via email).  For a longer assignment (6 months), you can sometimes get them to agree for a 3 month guarantee to see if you like it and them continue on for another 3 months.

3.    Responsibilities of TOP DOCS.

A.     TOP DOCS will pay PHYSICIAN on a bi-weekly basis.  TOP DOCS reserves the right to pay PHYSICIAN upon receipt of payment from  “Client” .

B.  TOP DOCS will provide Claims Made medical malpractice insurance to cover the professional medical services rendered by PHYSICIAN under this Contract.  Coverage limits are One Million Dollars and no cents ($1,000,000.00) and Three Million Dollars and no cents ($3,000,000.00) annual aggregate.

Know your rate of payment and how often you will get paid.  Also, have them send you a copy of your malpractice insurance coverage as you will need this for future jobs and for your records.

4.    Responsibilities of PHYSICIAN.

A.    PHYSICIAN shall provide physician services as described above in a competent and lawful manner and at all times as requested or required by TOP DOCS Client and in the place or places as reasonably requested by TOP DOC’s Client.

B.    Credentialing.  PHYSICIAN will provide all necessary documentation, including references, to TOP DOCS in order to properly credential PHYSICIAN with TOP DOCS’ Clients.

C.    PHYSICIAN shall comply with all regulations and by-laws and other lawful directives of TOP DOCS’ Client.

D.    PHYSICIAN shall render competent and professional physician services that comply with all applicable Federal and State laws.

E.    To the extent that liability under any judgment or settlement regarding the performance PHYSICIAN’S services under this Contract exceed the coverage limits for Claims Made medical malpractice insurance provided for by TOP DOCS, as stated in paragraph 3.B., above, PHYSICIAN shall hold TOP DOCS harmless from the same.

F.    PHYSICIAN hereby assigns and reassigns to TOP DOCS’ Client the right to bill and collect all professional fees related to services provided by PHYSICIAN under this Contract.  PHYSICIAN further agrees to sign any additional documentation that may be required by Federal, State, or private payers to document this assignment of the right to TOP DOCS’ Client to bill and collect professional fees.

G.    Independent Contractor Status.  PHYSICIAN understands that he or she is not an employee of TOP DOCS, and that TOP DOCS is not required to provide him or her with workers’ compensation coverage, thus worker’s compensation is the sole responsibility of the PHYSICIAN.  Rather, PHYSICIAN is an Independent Contractor and will and should be regarded as such by TOP DOCS and by TOP DOCS’ Client.  Nothing contained in this Contract will be construed to create a partnership, joint venture, or employment contract between the parties hereto.  PHYSICIAN shall be responsible for his or her own federal and state income tax, social security, unemployment, and disability taxes. Furthermore, PHYSICIAN shall have no authority to bind TOP DOCS or TOP DOCS’ Client without their express written consent, and shall not be considered as having employee status for the purpose of any employee benefit plan generally applicable to employees of TOP DOCS or TOP DOCS’ Client.  The Contractor shall obtain all necessary licenses and/or permits required to perform this work.  He/she shall take all responsible precautions necessary to protect persons and property from injury or damage during the performance of this contract.  He/she shall be responsible for any injury to himself/herself, his/her employees, as well as for any damage to personal or public property that occurs during the performance of this contract that is caused by his/her employees fault or negligence, and shall maintain personal liability and property damage insurance having coverage for a limit as required by the laws of the controlling state.  Further, it is agreed that any negligence of the Government, its officers, agents, servants and employees, shall not be the responsibility of the contractor hereunder with the regard to any claims, loss, damage, injury, and liability resulting therefrom.

You must set aside your taxes (35%), as it is your responsibility to pay taxes.  They will not take this out for you.

H.  Confidentiality.  While this Contract is in effect and thereafter, PHYSICIAN shall not divulge to anyone, except in the regular course of the business of TOP DOCS or TOP DOCS’ Client, any confidential information regarding the records of TOP DOCS or TOP DOCS’ Client, patients, plans, or any other aspect of TOP DOCS’ business which it considers to be confidential or secret.

I.  Reporting of Incidents.  PHYSICIAN shall immediately report any and all incidents that occur while providing services under this Contract.  “Incidents” as used in this paragraph include all events which may give rise to civil and/or criminal liability on the part of PHYSICIAN, violations of any of Client’s rules and regulations or by-laws by PHYSICIAN, any change or action taken or considered to be taken by any licensing authority regarding PHYSICIAN’S license to practice medicine, events or conditions that may adversely affect PHYSICIAN’S fitness to provide physician services, and events which may constitute malpractice by the PHYSICIAN, whether by commission or omission.

J.  Licensure.  In the event that TOP DOCS pays for the PHYSICIAN’S license in any state within, or in any territory of, the United States, or any other sovereign nation or state, and PHYSICIAN cancels this Contract for any reason or this Contract is terminated by TOP DOCS for any of the reasons specified in paragraph number eight (8), below, PHYSICIAN will be responsible for reimbursing TOP DOCS for all expenses paid by TOP DOCS for PHYSICIAN’S licensure.

5.    Compensation.

A.  Daily Rate.  TOP DOCS shall pay PHYSICIAN $ “Daily_Rate”  per day, consisting of an eight (8) hour workday.  PHYSICIAN will be paid for actual hours worked.

There needs to be a SPECIFIC daily/hourly rate and length of workday.

B.  Overtime.  TOP DOCS shall pay PHYSICIAN $ “Overtime_Rate”  per hour for each hour worked in excess of eight (8) hours during a workday.

Make sure overtime rate is stated.  Don’t be afraid to bill overtime as the recruiter bills the client (and the recruiter also makes more money when you bill overtime).

C.  Weeknight On-Call.  If PHYSICIAN will be on-call (as used in this Contract, “on-call” means that PHYSICIAN is subject to being called to return to Client’s facility by Client for the purpose of providing physician services) after normal working hours from Monday through Friday of any week, TOP DOCS will pay to PHYSICIAN the hourly overtime rate as specified in paragraph 5.B., above, for such work.

D.   Weekend on-call. If PHYSICIAN will be on-call on a weekend day (one 24-hour period covering a Saturday or a Sunday of any week), TOP DOCS will pay to PHYSICIAN a sum equal to one-half of the Daily rate as specified in paragraph 5.A., above.  If PHYSICIAN is requested or required by Client to return to Client’s facility or to see patients, TOP DOCS will pay PHYSICIAN the hourly overtime rate as specified in paragraph 5.B., above, for each hour worked.  However, if PHYSICIAN has not worked 40 hours prior to the weekend, PHYSICIAN will be compensated at the usual daily rate referred to in paragraph 5.A., above, and will be paid at the overtime rate specified in paragraph 5.B., above, only after PHYSICIAN has worked eight (8) hours in one day or more than forty (40) hours in one week.

Specific ON CALL rates should be stated.

E.   Holidays.  As used in this Contract, “holiday” means New Year’s Day,  Memorial Day, Independence Day, Labor Day, Veteran’s Day, Thanksgiving Day, and Christmas Day.  TOP DOCS shall pay to PHYSICIAN a sum equal to the Daily rate specified in paragraph 5.A., above, for any holiday on which a PHYSICIAN is required to be on-call by the Client.  In addition to the foregoing compensation, if PHYSICIAN is required or requested by Client to report to Client’s facility or to see patients, TOP DOCS will pay PHYSICIAN the overtime rate specified in paragraph 5.B., above, (hourly Rate x 1.3) for each hour worked.

6.    Housing and Transportation.  All housing and transportation arrangements must be pre-approved, or pre-arranged, by TOP DOCS.

Make sure to ask what type of housing you will be getting.  Once you are settled in (about a month), you can bargain for either an apartment (if relocating) or better housing if needed.  Usually, they put you up in an extended stay hotel.

A.  Local Travel.  For distances of up to 150 miles one-way, TOP DOCS will reimburse PHYSICIAN for mileage at the rate of forty cents ($.40) per mile for motor vehicle travel between PHYSICIAN’S home and the government client’s facility.

B.  Travel more than 150 miles one-way.  TOP DOCS will be responsible for reimbursing housing expenses for PHYSICIAN, if the distance to the government facility from PHYSICIAN’S home is more than 150 miles.  TOP DOCS will also reimburse for PHYSICIAN’S air transportation for one round-trip per assignment, and rental car expenses, if required due to distance from PHYSICIAN’S home.  If PHYSICIAN drives his or her own motor vehicle with the prior approval of TOP DOCS, TOP DOCS will pay forty cents ($.40) per mile for one round-trip per assignment to the government client’s facility.  If TOP DOCS makes prior arrangements for PHYSICIAN’S housing and transportation, PHYSICIAN may, at PHYSICIAN’S option and at PHYSICIAN’S own expense, upgrade such pre-arranged housing or transportation.

C.  Motor vehicle expenses.  PHYSICIAN’S fuel purchases, automobile repairs, maintenance, wear and tear, and other such expenses associated with the operation of a motor vehicle, are not expenses that will be reimbursed by TOP DOCS.

D.  Motor vehicle insurance and liability.  PHYSICIAN is responsible for obtaining and maintaining motor vehicle liability insurance on all motor vehicles (whether privately-owned, rented, or otherwise) operated by PHYSICIAN in the performance of this contract, and shall hold TOP DOCS harmless from any and all liability that may arise from PHYSICIAN’S operation of a motor vehicle in the performance of this contract.

7.    Placement of Physicians with CLIENT.  PHYSICIAN may accept a position with TOP DOCS Client.  TOP DOCS may have a contract with Client by which Client will pay a placement fee to TOP DOCS in the event that Client hires or contracts with PHYSICIAN independently of and contract with TOP DOCS. If no such contract or agreement exists between TOP DOCS and Client, however, and if PHYSICIAN accepts a position with Client, independent of a contract between TOP DOCS and Client, within two (2) years after the last day of PHYSICIAN’S services under this Contract, PHYSICIAN agrees to pay TOP DOCS a fee of Twenty-Two Thousand Dollars and no cents ($22,000.00).  Additionally, if a contract or agreement exists between TOP DOCS and Client by which Client will pay a placement fee, and if Client refuses or fails to pay the agreed placement fee, PHYSICIAN agrees to pay a fee of Twenty-Two Thousand Dollars and no cents ($22,000.00) to TOP DOCS.  All locum tenens services provided by PHYSICIAN to TOP DOCS’ Client for a period of two (2) years after the last day of PHYSICIAN’S services under this Contract will be provided solely through TOP DOCS.  If PHYSICIAN provides any services to TOP DOCS’ Client within a two (2) year period from the last day of PHYSICIAN’S services under this Contract, this Contract will continue until either PHYSICIAN or Client has paid the Twenty-Two Thousand Dollar and no cents ($22,000.00) fee provided for in this paragraph.  The term “Client” as used in this paragraph shall include the Client as defined in paragraph two (2), above, and any parent, subsidiary, or corporation or other business entity affiliated with Client, and any entity that is managing or that is managed by Client.

8.    Termination for Cause.  This Contract will become Null and Void and will be terminated immediately upon any of the following circumstances:

A.  Evidence of malpractice by PHYSICIAN;

B.  Evidence of drug or alcohol abuse by PHYSICIAN;

C.  Behavior unbecoming to a physician, or unacceptable professional conduct, on the part of PHYSICIAN;

D.  Request by TOP DOCS’ Client for the immediate removal of PHYSICIAN;

E.   PHYSICIAN’S hospital privileges are denied or refused.

F.   PHYSICIAN is unable to get hospital privileges.

9.    Termination.  Either party to this Contract may terminate this Contract at any time, with or without cause, upon thirty (30) days’ written notice to the other party.  In the event of the termination of this Contract, the provisions of paragraph seven (7), above, pertaining to the recruitment or hiring of PHYSICIAN by Client, shall still apply for a period of two (2) years from the date of termination.  If PHYSICIAN fails to give TOP DOCS a 30-day written notice to the first date of PHYSICIAN coverage or prior to leaving an assignment, PHYSICIAN shall be responsible for all expenses incurred by TOP DOCS relative to the assignment.  Expenses shall include housing, transportation and any other expenses directly related to the assignment. PHYSICIAN will be responsible for all costs associated with leaving an assignment prior to the dates agreed upon in the contract.

Make sure that you know your termination process.  There is usually a specified time you will have to give notice before you quit.  The same is true for the client.

10.    Unauthorized Time Off. If PHYSICIAN takes time off during the period of this contract, PHYSICIAN shall be responsible for the housing and transportation costs for the scheduled dates that are not worked.

Generally, there can be no time off the first 90 days.  Then, time off must be asked for 30 to 90 days in advance depending upon your client.  This also means they will deduct the housing costs and rental car costs from your paycheck, eg. $65/day for hotel and $20/day for rental car (so if you take 10 days off, that’s $850 deducted)

11.    Miscellaneous.  Time is of the essence of this Contract.  This Contract is made in the State of Florida, and shall be governed by Florida law.  This is the entire contract between the parties and may not be modified or amended except by a written document signed by the party against whom enforcement is sought.  This Contract may be signed in more than one counterpart, in which case each counterpart shall constitute an original of this Contract. This Contract may also be executed using facsimile transmissions, in which case any faxed executions of this Contract shall constitute an original of this Contract. Paragraph headings are for convenience only and are not intended to expand or restrict the scope or substance of the provisions of this Contract.  Wherever used herein, the singular shall include the plural, the plural shall include the singular, and pronouns shall be read as masculine, feminine or neuter as the context requires.  The prevailing party in any litigation, arbitration, or mediation relating to this Contract shall be entitled to recover its reasonable attorneys’ fees from the other party for all matters, including but not limited to appeals.  Volusia County, Florida, shall be the proper venue for any litigation involving this Contract.  This Contract may not be assigned or delegated by either party without the prior written consent of the other party.

IN WITNESS WHEREOF, the parties have signed this Contract as of the day and year first above written.

TOP DOCS, INC                                                   PHYSICIAN

By:_____________________________    By:_______________________________

Date    Date

________________________________            __________________________________

Printed Name                                                       Printed Name

TOP DOCS Contract Number:   “Contract_Number”

Now, you a know what a locum tenens agreement looks like and what to look for, you should feel more comfotable when reading over one.

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