CPRP Offer Negotiation and Contracts Questions and Answers

Question 1

A highly-qualified physician candidate agrees to the primary compensation terms but expresses strong opposition to the 15-mile, two-year non-compete clause in the proposed contract. What is the most appropriate initial action for the recruitment professional?

Accepted Answer

Consult with legal counsel and organizational leadership to understand the rationale and potential flexibility of the clause.

Answer

The recruitment professional's primary role in negotiations is to act as a facilitator between the candidate and the organization. Before providing a definitive response, the recruiter must first understand the organization's position, the legal necessity of the clause, and what, if any, flexibility exists. This allows them to manage the negotiation effectively and transparently.

Question 2

What is the primary purpose of including a 'severability clause' in a physician employment agreement?

Accepted Answer

To ensure that if one part of the contract is deemed legally unenforceable, the remainder of the contract remains valid and in effect.

Answer

A severability clause is a standard legal provision that protects the agreement as a whole. It states that if a court finds a specific section or clause to be illegal or unenforceable (a common issue with non-compete clauses, for example), that part will be 'severed,' but the rest of the contract will remain legally binding.

Question 3

A medical group is presenting several compensation plan options to a new physician. Which of the following models places the most direct and immediate financial risk on the physician if patient volumes are lower than projected?

Accepted Answer

A compensation model based purely on a percentage of the physician's net collections.

Answer

A model based purely on a percentage of net collections directly ties the physician's entire income to the revenue they generate. If patient volumes are low, collections will be low, and their income will suffer immediately. The other models all include a salary floor (guaranteed salary, base salary, or income guarantee) that mitigates the physician's downside financial risk.

Question 4

When negotiating medical malpractice insurance, what is the most significant practical consequence for a physician whose employment agreement includes a 'claims-made' policy?

Accepted Answer

Upon termination of employment, the physician or employer must purchase an extended reporting endorsement ('tail coverage') to remain protected from future claims.

Answer

A 'claims-made' policy only covers claims that are made while the policy is active. To protect against claims that may arise from incidents that occurred during the employment period but are filed after the physician has left, an extended reporting endorsement, commonly known as 'tail coverage,' must be purchased. The negotiation over who pays for this expensive tail coverage is a critical part of the contract process.

Question 5

A hospital provides a monthly stipend to a resident physician, conditioned on the resident joining the hospital's staff after completing training. To ensure the arrangement complies with the Stark Law physician recruitment exception, which of the following is a critical requirement?

Accepted Answer

The total amount paid must be documented in a signed agreement before any payments are made and must not be contingent on the volume or value of anticipated referrals.

Answer

Federal regulations, including the Stark Law and Anti-Kickback Statute, require that such financial arrangements be formalized in a signed, written agreement before payments commence. A key element of compliance is that the benefit (the stipend) must not be determined in a way that takes into account the volume or value of referrals the resident may make to the hospital in the future.

CPRP - Certified Physician Provider Recruitment Professional Practice Test

CPRP - Certified Physician Provider Recruitment Professional Practice Test

CPRP Offer Negotiation and Contracts Questions and Answers