Practices
Employment Agreement Review
Written employment agreements have become the standard for CEOs and other senior executives in the healthcare industry. With increased IRS scrutiny of healthcare organizations, employment agreements can be an important source of documentation.
The benefits of an employment agreement are that it:
- Records the understandings and agreements reached between the board/organization and the executive and formalizes the executive-employer relationship
- Provides the executive and the organization with some certainty of future dealings
- Provides for systematic performance evaluation
- Describes the handling and the process of various terminations, including severance provisions which allow the executive transition time for job search and possible relocation
It is important to obtain the views of both the board and the executive on their priorities for developing an employment agreement. We will interview the both the board chairman and the executive to gain perceptions regarding the executive’s employment agreement clarify the objectives to be achieved by the agreement, and to gain insight into any specific terms and conditions desired by either party.
Integrated Healthcare Strategies will conduct a number of analyses utilizing the information gained from the written material and perception interviews. The analyses will include a comparison of suggested terms and conditions of the agreements with competitive standards for other comparable positions and organizations, and a review of existing laws and regulations regarding employment contracts.
If requested, Integrated Healthcare Strategies will see that the actual legal agreement between the board and the executive is prepared and delivered. We will utilize the resources of our external legal firm specializing in employment and benefits law.
