The Impact Of Terminating Employed Physicians

Law360, New York (August 23, 2012, 1:42 PM EDT) -- Two recent cases highlight the need for hospitals that employ physicians to consider the collateral consequences of exercising termination rights under employment agreements.

In each case, the employer-hospital exercised its contractual right to terminate the employment agreement of a physician. In both cases, the terminated physician sued the employer-hospital for damages arising from the actions by the hospital.

In one case, the physician won; the court found that the physician was entitled to compensation during the notice period prior to the effective date of termination....
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