More thoughts on physician employment by hospitals
One of my clients, who was approached by a hospital for possible employment, proposed a trial period of 12 months. During that 12 months, she would be employed by the hospital and at the end of 12 months either party could walk away for any reason with no strings attached. No strings in this case meant no non compete and the hospital would pick up any tail insurance liability.
Since I always recommend an exit plan just in case hospital employment doesn’t work out, this trial period seems like a good idea. The hospital is seriously considering it and will let us know this week. Stay posted.
The importance of corporate bookkeeping
Several other clients are engaged in mergers and acquisitions. In two cases, one of the two parties to the merger and acquisition has not kept formal books, there are no bylaws, no operating agreements and no meeting minutes. In one case, it is impossible to reconcile the books and records and none of the numbers seem right. Each of the two business has been operated on handshakes and oral representations. Now it is difficult to ascertain who actually owns the companies and who has the authority to buy, sell or merge the companies. The companies without formal books may have to leave hundreds of thousands of dollars on the table that they would otherwise have been entitled to had they kept their books and records in order.
The take away here is that paying attention to corporate books and records pays off in the event of a merger, acquisition or audit.