What Is Buppert's Major Contract Restrictions?
Describe the major contract restrictions that can be included in a business contract. How do they potentially affect what you do as a NP on a daily basis?
Buppert (2015), outlines three major contract restriction which are: restrictive covenants, bonus formulas, and termination clauses. Each of these restrictions can effect a nurse practitioner’s (NPs) career and job satisfaction and are important to consider when negotiating a contract with a possible employer. Restrictive covenants keeps a nurse practitioner from becoming competition after leaving a business. The employer may require that you cannot work within a specific number of miles for a specific amount of time after leaving their company. From an employer perspective this keeps a past employer from leaving the company and taking their clients with them. It is …show more content…
important for nurse practitioners to ensure that the restrictive covenant is not unreasonable and to negotiate for necessary changes. As stated by McMullen (2010), a restrictive covenant should have reasonable geographic boundaries and be within a reasonable time.
A bonus formula is a payment system for which a NP can receive payment based on productivity, quality, profit and patient satisfaction (Buppert, 2015).
This gives NPs an opportunity to financially benefit some of the profits received by company. As a medical professional contributing the company’s success, it is only fair that one should also benefit from a company’s success. As stated by Buppert (2015), vague language and misinterpretations are the most common problems with bonus formulas. If the NP interprets the contract differently from the employer job satisfaction can occur due to unmet expectations.
The termination clause list reasons for which the employer can terminate the employee. An example of an unreasonable termination clause is one that states that an NP can be terminated without cause. This is not recommended for a NP as it leaves the reason for termination completely up to the employer’s discretion. To protect one’s career, the NP should make sure tht reasons for terminations listed in the termination clause are reasonable.
What are the important categories to consider when designing a contract as a NP employee of a private
practice?
Outlining the expected duties can help prevent misconception about the role and NP will have as well as ones work environment. An NP should know how much work he or she is expected to complete throughout the course of a work day. For example, if there are a certain amount of patients that must be seen or if a certain number of hours must be worked would be important to know. Compensation is also an important category to consider. While considering ones salary is important to know the breakdown of how one gets paid. Being paid a straight salary, per patient, or per hour can make a big difference depending on the employer. Considering what benefits an employer will offer is also important to consider. Continuing education, paid time off, and malpractice insurance are a few factors that would be important to negotiate. As stated by Buppert (2015), all contracts should be created with the help of an attorney who is knowledgeable about the law regarding NPs, as well as the business aspect if healthcare. It is clear the consulting an attorney would be well worth the time and money as a bad contract can have a massive impact on one’s career.
Buppert (2015), outlines three major contract restriction which are: restrictive covenants, bonus formulas, and termination clauses. Each of these restrictions can effect a nurse practitioner’s (NPs) career and job satisfaction and are important to consider when negotiating a contract with a possible employer. Restrictive covenants keeps a nurse practitioner from becoming competition after leaving a business. The employer may require that you cannot work within a specific number of miles for a specific amount of time after leaving their company. From an employer perspective this keeps a past employer from leaving the company and taking their clients with them. It is …show more content…
important for nurse practitioners to ensure that the restrictive covenant is not unreasonable and to negotiate for necessary changes. As stated by McMullen (2010), a restrictive covenant should have reasonable geographic boundaries and be within a reasonable time.
A bonus formula is a payment system for which a NP can receive payment based on productivity, quality, profit and patient satisfaction (Buppert, 2015).
This gives NPs an opportunity to financially benefit some of the profits received by company. As a medical professional contributing the company’s success, it is only fair that one should also benefit from a company’s success. As stated by Buppert (2015), vague language and misinterpretations are the most common problems with bonus formulas. If the NP interprets the contract differently from the employer job satisfaction can occur due to unmet expectations.
The termination clause list reasons for which the employer can terminate the employee. An example of an unreasonable termination clause is one that states that an NP can be terminated without cause. This is not recommended for a NP as it leaves the reason for termination completely up to the employer’s discretion. To protect one’s career, the NP should make sure tht reasons for terminations listed in the termination clause are reasonable.
What are the important categories to consider when designing a contract as a NP employee of a private
practice?
Outlining the expected duties can help prevent misconception about the role and NP will have as well as ones work environment. An NP should know how much work he or she is expected to complete throughout the course of a work day. For example, if there are a certain amount of patients that must be seen or if a certain number of hours must be worked would be important to know. Compensation is also an important category to consider. While considering ones salary is important to know the breakdown of how one gets paid. Being paid a straight salary, per patient, or per hour can make a big difference depending on the employer. Considering what benefits an employer will offer is also important to consider. Continuing education, paid time off, and malpractice insurance are a few factors that would be important to negotiate. As stated by Buppert (2015), all contracts should be created with the help of an attorney who is knowledgeable about the law regarding NPs, as well as the business aspect if healthcare. It is clear the consulting an attorney would be well worth the time and money as a bad contract can have a massive impact on one’s career.