Time to reconsider "without cause" provisions in employment contracts.
"Without cause" terminations by health plans, medical groups, and IPAs are under attack by physicians, consumers, the courts, and legislatures. This article describes recent challenges to such terminations, including both legislative and legal challenges. It suggests that medical groups, large or small, should expect an increasing number of employed physicians to question their groups' right to terminate them without cause. The article also suggests that all groups can protect themselves from litigation and potential liability for wrongful termination by following written policies or plans and procedures that govern the group's relationship with each physician and by not relying exclusively on without-cause contractual provisions.
Isackson
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Foley & Lardner, 402 West Broadway, 23rd Floor, San Diego, CA 92101, USA.
Meinhardt
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D032982:Contracts / Q000331:legislation & jurisprudence*; D004651:Employment / Q000331:legislation & jurisprudence*; D006801:Humans; D018024:Peer Review, Health Care / Q000331:legislation & jurisprudence; D010820:Physicians / Q000331:legislation & jurisprudence*; D011785:Quality Assurance, Health Care / Q000331:legislation & jurisprudence; D014481:United States