Related Investment Opportunities - Physician Contract Glossary
Related Investment Opportunities
Definition
Opportunities for physicians to invest in affiliated businesses, partnerships, or ventures connected to their employer’s practice, such as ambulatory surgery centers or imaging centers.
Examples in Context
“Physician shall have the opportunity to acquire a 5% ownership interest in Employer’s affiliated imaging center, subject to compliance with applicable federal and state laws.”
“The Employer reserves the right to invite the Physician to participate in investment opportunities in ancillary service providers affiliated with the practice.”
Implications for Physicians
- Can provide additional income through dividends or profit-sharing.
- May offer strategic involvement in practice growth and decision-making.
- May raise legal concerns related to Stark Law and Anti-Kickback regulations.
Negotiation Tips
- Request written documentation outlining the investment terms, including buy-in price, ownership percentage, and distribution of profits.
- Clarify if additional capital contributions may be required in the future.
- Confirm the process for exiting the investment, including resale options and timelines.
Red Flags and Pitfalls
- Hidden costs or unexpected financial obligations to sustain the investment.
- Investment structures that violate Stark Law or Anti-Kickback Statute regulations.
- Pressure to invest as a condition of employment.
Related Terms
FAQs
- “Is participation in investment opportunities mandatory?”
- Participation is usually optional, but some contracts may link investment to certain incentives. Clarify this in writing.
- “Can my employer force me to invest?”
- Employers cannot require investment as a condition of employment, but they may present it as an opportunity with financial incentives.
- “Will investment earnings count toward my productivity bonus?”
- Investment income is usually separate from salary or productivity bonuses. Verify with your employer.
Legal Disclaimer
The information provided in this glossary is for educational and informational purposes only and should not be construed as legal advice. While we strive to provide accurate and up-to-date information, this content is intended to help physicians better understand common contract terms and does not replace professional legal guidance.
For personalized advice regarding your employment contract or other legal concerns, we strongly recommend consulting with a qualified attorney who specializes in physician employment contracts.
You can find experienced legal professionals through our Physician Contract Lawyer Directory.