Letter of Intent
(Example)
(Insert Date)
Confidential
(Insert Candidate’s Name)
Re: Employment Agreement
Dear (Candidate’s Name),
This Letter of Intent (LOI) is entered into by and between _______________(Hospital)
and ______________, (M.D./D.O. (Physician), collectively referred to as the Parties.
This LOI is intended to set forth the basic terms around potential relationships between
(the Hospital) and (Physician) to support the delivery of health services to members of
the Hospital’s service area. This LOI is not intended to be a contract between the Parties;
rather it is intended to set forth the terms from which (the Hospital) and (Physician) will
negotiate a legally binding agreement.
1. Description of Arrangement: In this arrangement, (Physician) would become a
full-time employee of (the Hospital), would be responsible for providing
professional and administrative services for (the Hospital) and would work with
(the Hospital) to develop its ___________program. (The Hospital) would provide
(Physician) sufficient office space to enable (Physician) to carry on the full-time
practice of (specialty) medicine. (The Practice) would include all necessary
support staff in ratios agreed to by (the Hospital) and (Physician). (The Hospital)
would provide all billing services, equipment and other resources reasonably
necessary to operate (the Practice).
2. Employment Term: The term of employment would be for ___________ years.
Provided, however, the employment agreement (Agreement) may be terminated
earlier by the mutual written notice of the Parties, upon a material breach of either
Party (subject to a Cure Period), upon the death or disability of the Physician, or
the occurrence of certain specified events.
3. Compensation: Base compensation under the Agreement would be __________
($000000) per year. As an incentive to achieve goals and strategic objectives of
(the Hospital), Physician may receive additional incentive compensation in an
amount equal to ___________, based on the following formula (Insert Hospital’s
Physician Incentive Compensation Plan). In addition to the base and incentive
compensation paid to Physician, Physician would, subject to eligibility and any
contribution requirements, participate in (the Hospital’s) fringe benefits programs.
Premiums for malpractice insurance coverage would be provided by (the