Sample Contract

RESIDENT AGREEMENT

THIS RESIDENT AGREEMENT is made and executed in Berwyn, IL, effective as of June 1, 2012 (the “Effective Date”) by and between VHS Of Illinois, Inc., a Delaware corporation doing business as Vanguard MacNeal Hospital (“Hospital”), and, M.D.(“Resident Physician”).

WITNESSETH THAT:

WHEREAS, Hospital is operating a health care institution known as Vanguard MacNeal Hospital, located at 3249 S. Oak Park Avenue, Berwyn, IL.

WHEREAS, Hospital has established a Residency Training Program (“Program”) as a way to provide quality healthcare and quality clinical education for Resident Physician;

WHEREAS, Hospital desires to enroll Resident Physician in Hospital’s Residency Training Program, and Resident Physician is willing and desirous to participate under mutually satisfactory terms and conditions;

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, Hospital and Resident Physician agree as follows:

1. Hospital offers and Resident Physician hereby accepts an appointment with the Hospital as a Resident Physician at the PGY-1 level of training in Hospital’s Transitional Year Training Program.
2. Resident Physician acknowledges that Hospital has entered into contracts to provide managed care, and may enter into additional managed care contracts in the future. As used herein the term “managed care” shall mean care provided by Health Maintenance Organizations, Preferred Provider Organizations, Prepaid Medical Plans and other similar healthcare systems. Resident Physician agrees to comply with the terms of all managed care arrangements in which Hospital participates now or in the future to the extent such terms do not conflict with the standards of the Accreditation Council on Graduate Medical Education.
3. Resident Physician shall be directly responsible to the Program Director of the Residency Training Program (“Program Director”) or to the Academic Director of Internal Medicine.
4. Resident Physician shall abide at all times by the Hospital’s House Staff Manual, and the bylaws, rules and regulations, and policies and procedures of the Medical Staff and the Hospital, and shall conduct himself/herself in a professional manner. The Resident Physician also understands and agrees that the Hospital may, at its discretion, change or modify the aforesaid House Staff Manual, and the bylaws, rules and regulations, and policies and procedures of the Medical Staff and the Hospital and agrees to keep himself/herself appraised of the contents thereof at all times during the course of this Agreement.
5. Resident Physician represents that he/she is a Medical Doctor and that he/she has a valid license to practice medicine in the State of Illinois (“State”). If Resident Physician’s license to practice medicine in the State is revoked, suspended or otherwise subjected to discipline, then this Agreement shall automatically terminate as of the date of such revocation, suspension, or other disciplinary action. Resident Physician further agrees to provide the Hospital with prompt written notice if any action is taken against Resident Physician’s license to practice medicine in State, whether such action is of a temporary or permanent nature, or in the event that Resident Physician is subject to disciplinary action of any kind. The Hospital may, at its option, immediately terminate this Agreement upon or after commencement of any such disciplinary proceedings or other action.
6. Hospital solely shall bill for all professional services rendered by the Resident Physician. Any and all fees received in connection with such billed services, including all fees and payments of any nature in payment for managed care services rendered by Resident Physician, belong to Hospital and should be paid as received to Hospital and, if payable to Resident Physician shall be assigned to or endorsed promptly to Hospital by Resident Physician. Resident Physician shall not bill or collect from any payor or patient any sums for professional services rendered by Resident Physician under this Agreement.
7. Hospital shall compensate Resident Physician at the annual rate of $50,369.97 corresponding to Hospital’s 12-period accounting system.
8. This Agreement shall be in full force and effect for a term of twelve (12) consecutive months beginning on the Effective Date, and ending June 9, 2013.
9. A determination at any time by the Program Director or Academic Director of Internal Medicine that the Resident Physician has failed to fulfill any obligation under this Agreement shall be cause for the termination of this Agreement or other form of disciplinary action as is deemed appropriate by the Program Director. Resident Physician may appeal any termination or disciplinary action through the Grievance Process. Information regarding this process and applicable procedures may be obtained from the Intranet, at the location www.macneal.com.
10. Hospital shall provide a program of education that meets the standards established by the Accreditation Council on Graduate Medical Education.
11. Resident Physician agrees to fulfill the educational requirements of the Residency Program and the obligations to provide appropriate patient care as assigned by the Program Director or the Medical Director of the clinical service to which the Resident Physician may be assigned from time to time. Resident Physician shall maintain proper professional conduct and appearance and demonstrate courtesy and respect to patients, their families and all persons employed by or associated with Hospital.
12. Resident Physician shall attend all education conferences required by the Program Director or the Medical Director of the clinical service to which Resident Physician is assigned from time to time, unless Resident Physician is engaged in the emergency care of patients or specifically directed to perform other responsibilities by the Program Director or said clinical service Medical Director. Resident Physician shall participate as directed by the Program Director in related medical education programs provided through the Hospital’s affiliation with universities or other educational facilities.
13. At the termination of this Agreement, Resident Physician shall return all Hospital property, including but not limited to books, equipment, digital pager and uniforms, and shall complete all records and satisfy all professional and financial obligations. Upon termination of this Agreement, any and all rights to further payments under this Agreement shall terminate without further notice or action being required by Hospital; provided, however, that Hospital shall pay to Resident Physician any sums which accrued to Resident Physician on or before the date of termination. Any amounts due to Resident Physician shall be paid within sixty (60) days after this Agreement is terminated.
14. Resident Physician must be fully capable of participating in the Program, with or without a reasonable accommodation. Once Resident Physician has applied for admission to and is conditionally accepted by the Program, Resident Physician shall be required to undergo a complete physical examination, including blood test and drug screen, to confirm that Resident Physician is fully capable of participating in the Program, with or without a reasonable accommodation. In addition, Hospital may require evidence that the Resident Physician has been immunized against various viruses and may require that Resident Physician periodically take certain routine laboratory tests and chest x-rays. Hospital shall provide emergency first aid treatment to Resident Physician in the event that Resident Physician needs such care until the personal physician of Resident Physician can be summoned, but shall not be obligated to furnish any other medical or surgical services to Resident Physician and Hospital shall not be responsible for any costs involved in such treatment, any follow-up care, or any hospitalization.
15. Resident Physician shall be entitled to the benefits described in Exhibit A, provided, however, that Exhibit A identifies the benefits currently available to resident physicians at Hospital and such benefits are subject to modification amendment from time to time by Hospital at Hospital’s sole discretion.
16. This Agreement embodies the complete, full and exclusive understanding of the Hospital and the Resident Physician with respect to the Resident Physician’s employment by Hospital, and it supersedes and cancels all prior agreements, written or oral, between the parties hereto regarding the Resident Physician’s employment by Hospital. Any amendments, additions, or supplements to or cancellation of this Agreement shall be effective and binding on the Hospital and the Resident Physician only if in writing and signed by both parties.
17. This Agreement may be terminated: (a) at any time by mutual agreement of the parties; (b) by either party upon sixty (60) days written notice to the other; (c) upon one (1) days written notice to Resident Physician by Hospital if Resident Physician fails to perform satisfactorily any obligations under this Agreement, or is considered to have committed any major or repeated minor infractions thereof, or fails, in a material manner, to comply with Hospital’s rules and regulations, or is a danger to patient care or treatment; or (d) upon one (1) days notice to Resident Physician in the event that the Residency Program and/or Hospital lose approval of the Transitional Year Training Program during the term of this Agreement.
18. In the event that any provision of this Agreement is deemed to be invalid or unenforceable by any court of competent jurisdiction, such provision shall be deemed to be restricted in scope or otherwise modified to the extent necessary to render the same valid and enforceable, or, in the event that such provision cannot be modified or restricted so as to be valid and enforceable, then the same shall be deemed excised from this Agreement if circumstances so require, and this Agreement shall be construed and enforced as if such provision had originally been incorporated herein as so restricted or modified, or as if such provision had not originally been contained herein, as the case may be.
19. Any written notice given under this Agreement by the parties shall be addressed to the addressee at the address of such addressee as hereinafter set forth, unless prior written notice of a change of address has been furnished, in which case such changed address shall be used:
    MacNeal Hospital
    Attention: Chief Academic Officer
    3249 S. Oak Park Avenue
    Berwyn, IL 60402
20. Hospital may refuse access to its clinical areas to Resident Physician if Resident Physician does not meet Hospital’s employee standards for safety, health, or ethical behavior.

IN WITNESS WHEREOF, Hospital has caused this Agreement to be executed by its duly authorized officer, and the Resident Physician has executed this Agreement by hereunto setting his/her hand effective as of the day and year first above written.

EXHIBIT A

TRANSITIONAL YEAR RESIDENTS
BENEFITS:

The following is intended to briefly describe the various benefits afforded to you as a MacNeal Resident. A benefit highlights sheet may be found on the MacNeal Intranet (The Pulse) in Departments/Human Resources/Links/Benergy - Employee Benefits Portal. Benefits are subject to the terms of the plan documents or insurance contracts, as applicable, and may be changed at the discretion of Hospital.

1. Health, Dental and Vision Insurance
   Hospital offers medical, dental and vision insurance. The plans are not contingent on each other and are offered individually. Coverage is effective on the first day of employment if Resident Physician elects to enroll in the program.
2. Life Insurance and Accident
   Hospital offers group term life insurance. This benefit is given to you at no cost and the effective date is the first of the month following the date of hire. Benefits are as follows:
   Life Insurance 1X annual salary
   Accidental Life & Dismemberment 2X annual salary
3. Disability Insurance
   Hospital offers disability insurance. Effective date is the first of the month following the date of hire. An elimination period of 90 consecutive days and a claim form filed with insurance company is required. Benefits are 66 2/3% of salary up to $10,000 monthly.
4. Professional and General Liability Insurance
   The Resident shall be included in the coverage provided by the Hospital for professional activities directed by the Hospital. This coverage does not apply to activities by Resident which are not part of the Hospital’s training program. Limits of coverage exceed $50,000,000 per incident. While there is an institutional deductible, the coverage for the employed physicians and residents equates to first dollar coverage. The coverage is written on a claims-made basis. Under the program, extending reporting endorsement (tail) is the responsibility of the named insured, which is in this case Vanguard Health Management, Inc.
5. Workers’ Compensation
   The Resident shall be included in the coverage provided for professional activities directed by the Hospital. This coverage does not apply to activities by Resident which are not part of the Hospital’s program.

B. Additional Benefits

1. Tuition Reimbursement
   Tuition Reimbursement is available to resident physicians after 6 months of employment as long as they are receiving a degree related to the MacNeal Hospital. The tuition reimbursement program will only reimburse for Associate, Bachelor and Master Degrees. Doctorate Degrees are not eligible for tuition reimbursement.
2. Educational Stipend
   An annual stipend of $500.00 shall be provided to the Resident Physician to be used toward continuing education activities. Distribution of the stipends will be made for educational requests with the approval of the Program Director.
3. Direct Deposit
   Resident physicians can choose to have direct deposit at all participating banks
4. Housing
   Resident physicians are responsible to pay for his/her and their dependents’ housing. Hospital will provide sleeping quarters for the resident when they are required to be in the hospital while on call overnight.
5. Laundry
   Laundry service for lab coats for resident physicians is available.
6. Meals
   Resident physicians are not responsible for paying for meals taken at the Hospital while on call. For a 16 hour shift one meal is allowed and for a 24 hour call 2 meals are allowed. Meals are not compensated on a 12 hour shifts.

B. Paid Time Off

1. Vacation and Personal Time
   Fifteen (15) days of paid vacation and personal time are allowed during the academic year. Scheduling of vacation and personal time are subject to the policies of the Residency Program and must be approved by the Program Director in advance.
2. Educational Time
   Up to five days of paid time for professional education will be available to the Resident Physician, subject to approval by the Program Director.
3. Leave of Absence
   Absence without pay for a specified period of time shall be considered for reasons acceptable to the Program Director. Leave without pay for medical reasons, including maternity, is subject to the parameters prescribed in the leave of absence policy for the MacNeal Health Network and requires approval from the Program Director. All leave of absences require the approval of the MacNeal Transitional Year Program Director.
4. Sick Time
   Resident Physicians will have up to 5 sick days.

EXHIBIT B

POLICIES AND PROCEDURES

The following is intended to identify administrative policies and procedures relevant to you as a resident at Hospital. The full policy statements may be found on the Hospital Intranet (The Pulse) in Departments/Medical Education/Medical Education Policies. Links to the Human Resources policies can also be found on The Pulse in Departments/Human Resources/Human Resources Policies Library.

Medical Education Policies

1. Duty Hours Policy
2. Eligibility and Selection of Residents Policy
3. Grievance and Due Process and Procedure
4. Leave of Absence Policy
5. Moonlighting Policy
6. Non-Renewal of Agreement of Appointment Policy
7. Promotion Policy
8. Residency Closure Policy
9. Supervision Policies
10. Termination Policy
11. Transportation for Post-Call Residents Policy
12. Vacation and Sick Leave Policy

Human Resources Policies

1. Bereavement Absence
2. Confidentiality and Information Use Policy
3. Fitness For Duty
4. Fitness For Duty Evaluation
5. Leaves of Absence – FMLA
6. Leaves of Absence – Personal, Education, and Military
7. Sexual and Other Harassment