From HJ and Gail Hall, An ethical dilemma:
Let's say there is a company called, hmmm...let's see, We Is Elves.
Okay, now We Is Elves has a few contractors working for them, and they
don't give them any benefits. No insurance, no sick pay, no vacation pay,
no income tax withholding, nothing. They pay their contractors 7 cents a
line, and they charge the doctors between 10 and 12 cents a line depending
on the size of the account. (This is COMPLETELY hypothetical!) Now of
course, it would be unethical for one of the contractors to try to
swipe the clients away from We Is Elves, BUT would it be unethical for the
contractor to accept one of those accounts as their own if the client
approached the contractor and asked him/her to continue to do the work
personally, thereby cutting We Is Elves out of the deal? (In order to do
this, though, the client would have to do some sleuthing to figure out
who "wie/2" is.)
Gail: I believe this, would be unethical. Your main contractor went to the work of getting that client -- regardless of how little or how much actual work that happened to be. The only ethical way I could see to allow this would be for the MT to make a formal arrangement with the current contractor to switch over, and that might be done by paying the current contractor a "finders fee" or some such.
I've never heard of this between subcontractors and primary contractors, but if you compare this to temporary employment agencies and companies wanting to hire the temps as regular employees, this happens frequently. There are stipulations in the initial contract that if the company wants to hire the temp as a regular employee before a certain time goes by, the company must pay the temporary employment agency a set amount of money or money based on some set formula. I had a co-worker who got her job that way. In fact, it was pretty much understood between the hospital and the temporary employment agency that this was a form of looking for a regular employee. Although the transfer fee seemed like a like a lot at first, the hospital really saved money in the end because they did not have to pay the MT as much as they were paying the temp agency, and the MT gained because she was getting paid more than she was making under the temp agency.
HJ: If you were "wie/2" wouldn't you LOVE it if one of the clients offered you 8 or 9 cents a line for the same work and the same no benefits? You could probably afford to buy food then!! Imagine!
Gail: You had better not plan to work for any other agencies if you do that. I am sure it would get out that you stole clients. I would explain to the client the benefits of staying with the company. If I accept the job, even at more money, then I lose some of my freedom. I would also know that I did something unethical and wonder if anyone would trust me again in other matters.
Now, if the client DROPS your service and goes to ANOTHER service for a period of time and later comes back to you, I don't know if I would consider that unethical. My friend had this happen, and she felt that since he had used her company before, she would definitely create hard feelings with that company, so she told him if he came back to that agency, she would be happy to do his work.
HJ: Would it be unethical for you to accept this offer? I know the service owner wouldn't like it, but if they really value your work couldn't they counter-offer with 8 or 9 cents a line to keep you?
Gail: This would mean you would have to be honest with your contractor and tell her what happened. You might even be able to talk her into giving you more money because of the fact that you are so good and help them keep clients. But, frankly, I think a lot of this depends on how the main contractor treats clients and MTs, also. If that contractor is an unethical, cheating miserly jerk, then I might not be so hard-nosed about turning down such an offer.
But, remember, if you do accept this client, don't be surprised if he starts demanding lots of special services from you that he wasn't getting before. He would probably be just as quick to dump you as he was the first agency. Think about that before jumping in! Another thing about being the primary contractor is that you will have less time to do medical transcription and will have to spend more time servicing the clients by trouble-shooting for them, perhaps even going to their offices to help them with their computer setup if you upload your files, etc. You might have to charge extra for that, but it does mean you have to keep closer track of all that you do, not just count lines in documents, and be able to prepare bills, collect fees, etc. Plus, you would have to get all your own substututes to work overflow, vacations, sick times, etc., and then worry about whether they would swipe clients from you! What I think would be an interesting idea would be what amounts to an MT agent. This person would be like an actor's or writer's agent. The agent goes out, finds work, helps with some of the fee collections, etc., and gets a percentage of what the actor or writer makes. Yet, it is really the actor or writer who has the actual contract with the company they are doing work for. Wouldn't it be nice if MTs could find a similar arrangement? This might help some of us who really don't like "selling" per se but who do want to do more MT work. Or perhaps this "agent" could be considered more of a "finder" who just gets doctors and MTs together for a finder's fee but then things are done strictly between the MTs and doctors after that.
This contract is made and entered into on _______(date) by _________(client) whose address is ____________ and _____________(your company name) whose address is ______________. In consideration of the mutual promises in this contract, the parties agree to abide by all the terms of this contact.
Contractor agrees to do the following: Medical transcription in accordance with client's documentation guidelines and forms. Services shall include: _______________________. Turnaround for transcription services shall be forty-eight (48) hours.
Pickup and delivery of the materials needed to complete this service will be made by the contractor, or his/her appointed courier, at the client's place of business at such a time agreed to by both parties. Contractor promises that the final product will be completed to the client's satisfaction.
For performing the work described above, client agrees to pay contractor the amount of ______ per line. It is agreed that sixty-five (65) characters constitutes a line.
Either party may terminate this agreement on not less than thirty (30) days' notice.
Confidentiality: As a contractor, it is my responsibility not to violate any confidence of the patient or their family through indiscriminate discussion pertaining to patients, their treatment, diagnosis, or progress. Erroneous and nonpublic information released by me shall result in legal liability. I understand and agree that all patient records and patient information are strictly confidential and will not make any disclosures.
Errors and Omissions Insurance: It is my policy that computer-authenticated or other artificial signatures generated by means other than the actual dictating physician's signature are not endorsed by me. Therefore, the doctors should proofread their transcription for document content, accuracy and quality control.
No changes shall be made in this agreement unless those changes are agreed to in writing by both contractor and client.
________ Posted by Maria Stahl on September 06, 1998 at 21:14:50:
In Reply to: Subcontractor contracts... posted by Calli on September 06, 1998 at 15:26:14:
We, the undersigned, agree to the following conditions of subcontract work for Maria Stahl, CMT, Medical Transcription:
1) The independent subcontractor will provide his/her own transcription and word processing equipment, reference materials and supplies, and will work off site.
2) Work hours are set at the independent subcontractor's discretion.
3) Payment will be based upon a preagreed rate of pay per typed line. The rate of pay will be (___________) cents per typed line, a line being defined as 65 characters by electronic character count. Payment for special projects and rush work will be negotiated separately as such situations arise.
4) The independent subcontractor will bill Maria Stahl, CMT, Medical Transcription at monthly intervals. Maria Stahl, CMT, Medical Transcription will make payment for services provided by the independent subcontractor within 30 days of presentation of bills to Maria Stahl, CMT, Medical Transcription.
5) The independent subcontractor has been advised of and understands the need for confidentiality in dealings with Maria Stahl, CMT, Medical Transcription's clients and their clients. The independent subcontractor specifically agrees that no information whatsoever of a confidential nature shall be disclosed to anyone, whether associated with or external to Maria Stahl, CMT, Medical Transcription, without the express written consent of Maria Stahl, CMT.
6) The independent subcontractor, while under contract to Maria Stahl, CMT, Medical Transcription and for one year after termination of contract, may not contract directly to clients of Maria Stahl, CMT, Medical Transcription without the express written consent of Maria Stahl, CMT.
7) Maria Stahl, CMT, Medical Transcription will only pay for reports which meet the requirements of her clients. This includes missed deadlines. The independent subcontractor will be given an opportunity to correct any unacceptable work and will receive payment for the final and correct version.
8) The independent subcontractor understands that Maria Stahl, CMT, Medical Transcription cannot guarantee the quantity or duration of work that will be made available to the subcontractor. The volume of work available is beyond the control of Maria Stahl, CMT, Medical Transcription, since that volume is set by her clients.
9) Upon termination of the contract agreement between the independent subcontractor and Maria Stahl, CMT, Medical Transcription, all tapes, reports and client stationery are to be surrendered to Maria Stahl, CMT, Medical Transcription within 24 hours of termination of contract.
10) Maria Stahl, CMT, Medical Transcription reserves the right to terminate the subcontract agreement at any time, with 30 days written notice, with or without a stated cause.
11) The independent subcontractor also has the right to terminate the subcontract agreement at any time, with 30 days written notice, with or without a stated cause.
_____
Posted by Judy D on September 07, 1998 at 09:08:16:
In Reply to: Subcontractor contracts... posted by Calli on September 06, 1998 at 15:26:14:
This is the one I used when I had subcontractors. Hope it helps.
(Company)
WHEREAS SUBCONTRACTOR desires to contract with Contractor to perform said work and/or services, and
WHEREAS the parties desire to set forth their contractual and business arrangement(s)
THEREFORE, this agreement constitutes the said contractual and business arrangements, and the parties contract and agree as follows:
THAT THE SUBCONTRACTOR agrees to perform, abide by and follow the stipulations listed in the remainder of this contract.
Equipment:
The subcontractor is responsible to provide all equipment and supplies necessary for any work done, other than supplies given by the client (i.e. stationary, indigenous to the client). These supplies provided by the Subcontractor include, but are not limited to, office equipment (i.e. computer, transcription equipment, etc.), paper, dictionaries and manuals, ribbons, tools, etc. The subcontractor is also responsible for all repairs on his or her own equipment.
Any supplies that are necessary from the client must be requested well in advance by the Subcontractor and the Subcontractor is responsible to keep an adequate supply on hand at all times. This supply must be returned to the Contractor should this contract ever cease.
Any equipment or supplies loaned by the Contractor to the Subcontractor must be returned to the Contractor at the termination of this contract, or final payment of any payment due will be held until said items are returned.
Pricing and Payment
Payment for services rendered is on a per line basis, 65 characters per line at a rate of$.0__ per line. Subcontractor provides necessary transcription label paper of type specified by the Contractor. Subcontractor will submit invoice with attached log for each client on the 9th and 24th of each month. Payment will be made within five days.
Communication with Clients.
Subcontractor may not communicate with client directly regarding billing or pricing structure or anything other than a question directly applying to the typing or work procedure, such as terminology, spelling, etc. When communicating with the client on the above matters, Subcontractor must identify themselves as being from the agency of the Contractor and in no way may represent themselves as their own agency or business.
Page Two
Non-Compete Clause.
The clients of the Contractor will remain the clients of the Contractor. At no time prior to or within one year of termination of this contract may the Subcontractor do any work for the client in any way, shape or form except through the Contractor. The Subcontractor may not contract or draw business or clients or accounts from anybody in any way connected with any of the clients of the Contractor.
Miscellaneous.
The logo, name, propaganda and advertising associated with the Contractor is exclusively the property of the Contractor. Unauthorized usage of any stationary or materials or unauthorized representation of the agency of the Contractor or the Contractor itself is strictly prohibited. The Subcontractor cannot use any name similar to or resembling in any way, shape or form the name, advertising methods and appearances, or practices of the Contractor.
Termination of this Contract.
The Subcontractor must give no less than a 7-day notice to the Contractor in writing for termination of this contract.
Before the termination is effective, Subcontractor must return all supplies and/or equipment belonging to or loaned by or borrowed from the Contractor. The subcontractor is also responsible to supply the Contractor with all completed work and any unfinished work. Failure to comply with any portion of this termination stipulation of any portion of this contract may result in withholding of final payment.
Violation of any part of this contract can result in immediate termination by the Contractor without notice. All termination terms other than 7-day notice would then be applicable for the Subcontractor and final check would be held until terms are complied with.
Contractor reserves the right to remove a client from the Subcontractor without any notice or change clients serviced by the Subcontractor. Subcontractor also agrees that clients can be dropped at any time due to termination from the client.
The Subcontractor, _________________________________________, hereby agrees to abide by all of the terms and stipulations set forth in all pages of this contract and understands each item fully, as signified by signing below.
____________________________________ ____________________________________
Subcontractor S.S. No. of Subcontractor
_______
Posted by DebF surfaces briefly :-) on March 20, 1999 at 11:57:05:
Hello, old friends. I've been up to my eyeballs in work and family stress, and I haven't been online much at all. But unbelievably, I've been getting e-mails about stuff I posted last year...the Confidentiality Agreements, my marketing posts, etc. I am no expert, but I'm happy to share my 2 cents on contracts, which I've been asked about lately....if you're interested, read on, and of course feel free to add your own perspectives.
Bye for now,
Debbie
-----As far as contracts go, you'll find a real wide range of opinions on them. Those that like them feel like they have "security" (which I don't personally feel that a piece of paper can give you--as anyone who has been divorced or laid off or fired can tell you). Anyway, as I was saying, those that like contracts point out the advantages as being pre-determined pick-up/delivery schedules, workflow, rates, and it appears the most important advantage to them seems to be feeling like the work is "locked up," or "guaranteed" to them, for example they usually contain a 30-day notice clause so the doc would have to give you 30 days notice before they replaced you (it goes both ways, which means that you have to give them 30 days notice, too).
Now that I've told you some of the "pros" of them, I'll tell you the "cons," at least is in my view. As I said,I'm sure you know that contracts can be broken, and what is an MT going to do if the contract is broken by the doc, sue him/her? Doubtful and not very good business, right? Also, if someone doesn't want me to work for them, for whatever reason, I sure don't want to "HAVE TO" do their transcription for 30 days extra because they can make it miserable on you if they don't want you to do their work anymore, so that you will quit early. On the opposite end of that, if I get a great job offer for tons more money but they need me right away, (it could happen, right? :-) then I want out ASAP. Now out of courtesy if I had a good working relationship with them, I'd find a way to give them as much notice as possible, probably 2 wks anyway, and I'd even help them find someone, but I'd hate to have it in writing that I have to keep doing their work for 30 more days, and hurt myself in the process by not being able to accept the other opportunity.
That's one aspect of it. The other, for me personally, is that I prefer a more loose schedule, and with all my docs, I have the kind of arrangement where I can come and go as I please, whatever day, whatever time, whenever I want, with however much work I have done. Sounds selfish probably, but I have a great deal of physical pain to contend with, and the whole reason I work at home is so that when I feel good, I can crank out the work, and when I hurt a lot, I can take care of myself. So it works for me this way. As long as they're happy with my work, they are great about when I come and go. I set it up that way from the start, so as not to get them used to a certain schedule.
Another reason I don't want to get involved in contracts is that it can make some people nervous and obligated, and I just don't feel like getting involved in any of that. I have enough confidence in my work that I don't feel I need to have anyone sign a binding contract to keep me.
Oh, one more thing....(now why do I say that when it could easily be a few more things instead? :-) Another reason people LIKE contracts is because of cash flow. It gives them 30 days to find another source of income to replace the one that will be gone. That's a very valid point, and it's a very individual thing. For me, the stress of working with someone who doesn't want me there would be higher than the stress of not having the income, and that is saying a lot because I have no health insurance, health problems galore, and almost had to move into my car last year. I'm working on getting on my feet again, but because stress is very involved in my health, for me personally, I've always had the confidence in my skills to know that I'd land on my feet and find other work. For me, more stress = not able to do my work, which = losing the job anyway, so I'm better off all around if I can just minimize the stress so I can keep working.
I feel compelled to point out....my comments are all based on if you are talking local work with local docs. If you're doing the out of town thing or with a national company, it's another whole ballgame, and you're better off posting a question on MT Daily's Main Page and see what experts say who are involved with it that way.
Hope this is helpful to you. I am no expert, and am just posting this to answer the e-mail questions I've been getting lately. :-)
Also, feel free to add your own 2 cents on the contracts issue. :-)
Take care, all.
Deb
(Address)
(Phone Number)
Contract, Con't
Between: ___________________________________________, Subcontractor
and ,, Contractor