What Medical Practices Should Know Before Terminating a Physician, Nurse, or Practice Manager in California
Employment law is complicated. Before a medical practice takes the big step of terminating a physician, nurse, practice manager, or other key player, it is important to have a proper plan in place. There are a wide range of legal, logistical, and business issues that need to be addressed. Here, our California business lawyer for employers highlights key considerations that medical practices should know before terminating a doctor, nurse, or practice manager.
Start With an Employment Contract (If there is One)
California is an at-will employment law state (CalChamber). The relationship between an employer and employee is fully voluntary and can be ended by either party at any time. That is unless there is an employment contract that holds otherwise. It is an important consideration for medical practices because many doctors and nurses work under a contract. If there is a contract, it needs to be carefully reviewed before a termination moves forward.
Evaluate the Potential Wrongful Termination Risk
Even in an at-will employment state, a termination decision must comply with California law. No employee can be removed for illegal reasons. In other words, a medical practice employer cannot terminate a physician, nurse, or practice manager for a reason that violates statutory protections or clearly established public policy. California courts recognize claims for wrongful termination when an employee is discharged for refusing to engage in unlawful conduct, reporting regulatory violations, or exercising protected legal rights. If you have any questions about a potential wrongful termination claim by an employee, a California employment lawyer for medical practices can help.
Continuity of Patient Care
The most important consideration of the medical practice is the continuity of care for the patients. A plan should be put in place for patients to ensure their continuity of medical care following the employee leaving the medical practice.
Follow Established Internal Procedures and Be Sure Everything is Properly Documented
Before terminating a key healthcare employee, a medical practice should ensure that it has followed consistent internal disciplinary procedures. Employers should review performance evaluations, written warnings, and any prior disciplinary measures. Proper documentation helps demonstrate that the termination decision is grounded in legitimate business reasons rather than discriminatory or retaliatory motives. Practices should also coordinate the termination process with human resources policies, compliance officers, and their outside legal counsel.
Ensure Full Compliance With Medical Staff and Licensing Rules in California
When terminating a physician, medical practices must also consider professional licensing and credentialing implications. Physicians often hold clinical privileges, contractual obligations, or professional relationships that extend beyond the employment agreement. A termination may sometimes lead to reporting obligations under certain circumstances. That is particularly true if the termination involves allegations of professional misconduct and/or quality-of-care issues. Medical practices should evaluate whether the situation requires reporting to the California Medical Board, hospital credentialing committees, or national practitioner reporting systems.
Contact Our Bay Area Employment Lawyer for Medical Practices Today
Lynnette Ariathurai is a California employment lawyer for employers. If you have any questions about terminating a physician, nurse, or practice manager, we can help. Contact us today for a fully confidential initial consultation. With an office in Fremont, we provide employment law representation to medical practices throughout the Bay Area.
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