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Importance Of Employment Contract Between Employer And Employee

Question

Dr. Strangelove, a physician who is a nationally known orthopedist, has been offered a position as Chief Medical Officer with an orthopedics electronic health records company. The company currently has $5,000,000 in annual revenue, and the company hopes that Dr. Strangelove can influence other orthopedists to purchase the company’s electronic health records software. He has been offered a base salary of $100,000 per year if the company’s sales are less than $10,000,000 per year, but $250,000 per year if the company’s sales are more than $10,000,000 per year. The President of the company says that he needs Dr. Strangelove’s services immediately. The President says that there is no time to prepare a written employment agreement, but that can be addressed after Dr. Strangelove starts. The physician thinks this is a dream job, and he does not want to do anything to jeopardize the opportunity. Dr. Strangelove is your friend. He anxious to get to work, and he has come to you for advice.

1.    What advice would you give to Dr. Strangelove regarding compliance of the offer with laws governing the health industry, particularly Stark and the Anti-Kickback Statute?

Summary

The question belongs to Law and it discusses about a scenario where an electronics health records company offers Chief Medical Officer post to a orthopedist without a contract to begin with. The doctor who is keen about the job is given advice whether or not to take up the job.

Total Word Count 112

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