Healthcare practitioners are often engaged in a multitude of business relationships regardless if they are sole practitioners or part of a large provider group. These relationships may be in the form of employment agreements, partnership or shareholder agreements, payer contracts, independent contractor agreements, among others.
Most business relationships, regardless of type, are memorialized in written agreements which will set forth the terms of the relationship between the parties. These terms typically include information about the length of the relationship, the duties of the parties, compensation or division of profits among the parties, as well as other terms directing the on-going relationship.
The provisions of these agreements that are often not given sufficient consideration are terms regarding the termination of the business relationship, whether that termination be amicable or otherwise. Often the parties ignore these provisions or give them little thought at the outset of the business relationship as the parties are typically optimistic about the on-going relationship and are likeminded about the benefits each will receive from the relationship.
However, if a relationship sours or the parties simply wish to part ways, termination provisions are vital to providing direction to the parties as to how a termination of the business relationship should proceed. Unpleasant surprises often await those who did not give adequate consideration to the termination provisions of an agreement at the beginning of the business relationship or perhaps have not revised and updated the written agreement as the relationship has continued, resulting in termination provisions that do not accurately reflect the wishes of the parties.
Before entering into any type of business relationship, the provisions regarding the termination of that relationship, should be reviewed fully. These provisions should be considered not only for circumstances where an ending of the relationship is amicable, but in those circumstances in which the parties may be at odds. For existing agreements, if they have been in place for some time, they should be reviewed to ensure that the terms still reflect the wishes of the parties. Looking at these terms before they are needed will provide all parties with the assurance that the business relationship will be terminated in the most uneventful manner possible.
Ms. Beggs, owner of the Law Offices of Lyn E. Beggs, PLLC, focuses her practice primarily on assisting clients with administrative and professional licensing board matters in addition to representing healthcare providers on a variety of issues. Ms. Beggs may be reached at 775-432-1918 or at firstname.lastname@example.org. This article does not constitute legal advice and should not be considered a substitute for retaining counsel for advisement in legal matter.