Employment Agreement Indemnification

“In addition, contractual indemnification of a medical group`s agreement with a hospital can be unnecessarily complicated by contractual compensation,” Sullivan says. In order to avoid compensation during a dispute, multiple defendants may disclose undesirable facts about other defendants, increasing the liability of all defendants. For example, in attempting to impose a mutual compensation clause in the event of a New York treatment error, a defendant obstetrician asserted that the hospital should compensate him because a hospital visit did not do the trick.1 In exchange, the defendant hospital asserted that the resident should compensate him because the resident had deprived him of important information and provided poor quality care. Although an employment contract does not contain explicit compensation, customary law implicitly requires an employer to release its employees from commitments resulting from the proper performance of their obligations. “That`s what the law is in many states, in the absence of an agreement,” Milligan says. The other type of compensation is contractual, which in some cases is broader, for example. B the agreement to exempt one party from all claims arising from the conduct of the other party or the conduct of the physician. An officer should negotiate the evolution of attorneys` fees and not the reimbursement of expenses. Pre-graduation is an indemnity for expenses incurred in advance, with the promise to reimburse the pre-paid sums if it is established by the court that the executive was not entitled to compensation.

Acceptance of a contractual indemnity could require a physician to fully reimburse an employer for the events to be compensated. “Sometimes this compensation may apply when the employer`s own negligence may have caused the employer`s injury,” Sullivan says. For example, when a doctor misses a heart attack in a busy emergency room and is sued, a compensation agreement may require the doctor to cover all costs incurred by the hospital in defending the complaint, even if the treatment error occurred because the hospital was heavily under-occupied by the emergency room. . . .

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