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Pharmacist Employment Contract Review

Chelle Law provides Pharmacist Contract Review for pharmacists entertaining a new job or renegotiating an existing pharmacy employment agreement. You have worked hard to develop your skills and deserve to advance in your professional career with a fair market value agreement. So, when you are about to enter into a pharmacy agreement, getting employment agreement services before signing is vitally important. The terms of the agreement will impact your practice and your day-to-day life. Attorney Robert Chelle can provide an overview of your agreement, identify the areas that could be improved and assist you in negotiating the best agreement possible. Each pharmacist that requests Mr. Chelle’s expert assistance receives:

  • Available in any state
  • Flat-rate pricing, with no hidden costs
  • Review of your proposed employment agreement or agreements
  • Phone consultation reviewing the Pharmacist contract term by term
  • Follow up contact with a review of the needed clarifications

Employment Agreement Negotiations Involving Patients

Pharmacy agreements are a pervasive and obligatory part of every job search for pharmacists. Well-drafted agreements help to enumerate the responsibilities of the involved parties, divide liabilities, protect legal rights, and insure future relationship statuses. These touchstones are even more crucial when applying their roles to the case of a pharmacist employed by a hospital, corporate owned group, or private practice. While agreement drafting and negotiation can be a long and arduous process, a search for quality legal representation is a must in order to ensure that your rights are being protected before you start your new job and sign a new agreement.  The present day conclusion is simple: you should not sign an agreement without having the agreement reviewed by legal counsel.  For instance, concerns include: license defense, Pharmacist board policies, employee salary increases, attorneys fees, salary negotiations upon expiration on the associate agreement, fees, etc.

Pharmacist Employment Contract Checklist

Every PharmD employment agreement is unique.  However, nearly all contracts for healthcare professionals should contain several essential terms.  If these essential terms are not spelled out in the pharmacist agreement, disputes can arise when there is a disagreement between the employer and employee as to the details of the specific term.  For instance, if the Pharmacist is expecting to work at the practice Monday through Thursday and the employer is expecting the provider to work Monday through Friday, but the specific workdays are absent from the pharmacist Agreement; who prevails?

Spelling out the details of your job is crucial to avoid conflicts during the term of your employment.  Below is a checklist of essential terms that pharmacist agreements should contain (and a brief explanation of each term):

  1. Practice Services Offered: What are the clinical patient care duties? Are you given time for administrative tasks?
  2. Patient Care Schedule: What days and hours per week are you expected to provide patient care and have patient contact?
  3. Locations: Which facilities will you be scheduled to provide care at (outpatient clinic, surgical sites, in-patient services, etc.)?
  4. Outside Activities: Are you permitted to pursue other part time jobs while employed? Do you need permission from the employer before you accept those part time related positions?
  5. Healthcare License:  Will the practice offer reimbursement for your license or assist in license defense for the Healthcare Board?
  6. Practice Call Schedule: How often are you on call (after hours office call, hospital call (if applicable)?
  7. Electronic Medical Records (EMR): What EMR system is used? Will you receive training prior to providing care?
  8. Base Compensation: What is the annual base salary? What is the pay period frequency?  Does the base compensation increase over the term of the pharmacy Agreement?
  9. Productivity Compensation: If there is productivity compensation; how is it calculated (wRVU, net collections, patient encounters, etc.)?
  10. Practice Benefits Summary: Are standard benefits offered: health, vision, dental, life, disability, retirement, etc.?
  11. Paid Time Off: How much time off is offered? What is the split between vacation, sick days, CME attendance and holidays?
  12. Continuing Medical Education (CME): What is the annual allowance for CME expenses and how much time off is offered?
  13. Dues and Fees: Which business expenses are covered (licensing, DEA registration, privileging)?
  14. Relocation Assistance: Is relocation assistance offered? What are the repayment obligations if the pharmacy Agreement is terminated prior to the expiration of the initial term?
  15. Signing Bonus: Is an employee signing bonus offered? When is it paid?
  16. Professional Liability Insurance: What type of professional liability insurance is offered for the employee: claims made, occurrence, self-insurance?
  17. Tail Insurance: If tail insurance is necessary, who is responsible to pay for it when the pharmacy Agreement is terminated?
  18. Term: What is the length of the initial term? Does the pharmacy Agreement automatically renew after the initial term?
  19. For Cause Termination: What are the grounds for immediate termination for cause?
  20. Without Cause Termination: How much notice is required for either party to terminate the Agreement without case?
  21. Practice Post Termination Payment Obligations: Will you receive production bonuses after the pharmacy Agreement is terminated?
  22. Non-Compete: How long does the non-compete last and what is the prohibited geographic scope?
  23. Non-Solicitation: How long does it last and does it cover employees, patients, and business associates?
  24. Notice: How is notice given? Contact via email, US mail, etc.?
  25. Practice Assignment: Can the pharmacy Agreement be assigned by the employer?
  26. Alternative Dispute Resolution: If there is a conflict, will mediation or arbitration process be utilized?

Breaking a Non Compete with a Pharmacy

Pharmacy non compete agreements were originally considered as restraints of trade, and thus were invalid on the grounds of public policy at common law; however, many restraints of trade incident to agreements were upheld based on the rule of reason.  Thus, restrictive covenants between dentists not to compete after termination of employment are generally enforceable as long as it is reasonable.

However, there are a few states which prohibit non compete contracts.  Please check your state laws for non compete contracts to see what the specific rules for your state are.  The general test for reasonableness of non-competition agreements holds that on termination of employment, a covenant  which restrains an employee from competing with his former employer is termed reasonable if:

  • The restraint is not more than required for protecting the employer,
  • It does not inflict any untold of hardships to the employer, and
  • The restraint is not injurious to the public.

 Non Compete Reasonableness for Employees of a Pharmacy

For instance, in Ohio, a non-competition clause was unreasonable when it was noted that a provider’s sub-specialty was uncommon, and that it would be harsh if the restrictive covenant was enforced as the hospital where he was precluded from practicing was only one of the few institutions in the area where he could practice his specialty.

Thus, in Ohio, covenants restraining providers from competing with his employer on termination of employment is considered unreasonable if it inflicts untold of hardship on the pharmacist, is injurious to the public, if the demand for the dentist’s medical expertise is important for the community people and if the dentist’s services are important for the health, care and treatment of public.  However, non-competition clauses for dentists, in general, are enforceable as long as they protect some of the employer’s legitimate interests.

Pharmacists Concerns for Contracts with a Pharmacy

You face much risk when they take pharmacy contract matters into their own hands. Pharmacy contract terms are highly negotiable and have a great impact not only on professional life but also on lifestyle, family and the future.  There are many important employment terms and clauses in pharmacy contracts which can present new complex and diverse issues for any provider, including:

  • Unfavorable call schedules
  • No assistance in license defense
  • Small Production Bonuses
  • Lack of Benefits
  • Not enough paid-time-off
  • Not enough vacation time
  • Unfair Non-Compete
  • Inadequate professional liability coverage

Pharmacist Contract Attorney

When your pharmacy contract is analyzed by an experienced attorney, you will find financial benefits which end up outweighing the cost of the analysis. Leave it to the experts. If you are in need of assistance with an pharmacy agreement or pharmacy contract analysis schedule a Pharmacist Agreement Review with Chelle Law today!