Prohibitions on backdating medical agreements
The event did not happen during the time period required for the benefit so an attempt is being made to pretend that it did.This is a fraud on the tax authorities, a criminal offence and is likely to get the lawyer who prepared the document disciplined by his regulator and possibly also charged as a co-conspirator.Arizona Supreme Court Justice Stanley Feldman also noted Valley Medical's agreement said the court would enforce the document although it actually did not have the power to do so or to alter the wording.Blue-Pencil Rule The so called "blue-pencil rule" has allowed trial courts to eliminate or modify portions of documents a court deemed unreasonable if the document contained a severability clause. 355 (2002).] "What used to happen and what will now happen is that a physician will sign a contract that says he will not compete/practice in a non-compete zone," Milligan said."Some people will need to pull in their horns on the scope and duration of these agreements," said Robert Milligan, an attorney at Phoenix law firm Gallagher & Kennedy PA.He added a non-compete area of three to five miles and a duration of one to two years should be reasonable, depending on the physician's specialty.Most of Milligan's clients are medical groups, but for his physician clients he is advising they sign potential agreements right away and "play dumb." "For people in the process of negotiating a non-compete agreement, it's best to just play dumb and sign an excessively broad agreement that's probably going to be invalid anyway," he said.
2d 1277 (1999).] Non-Compete Agreements A non-compete agreements prohibit doctors who leave the practice from treating patients within a certain distance from the clinic for a specific amount of time.
But the Supreme Court determined that rewriting such covenants would no be fair to employees. "Then the non-compete zone will be defined as in effect for a specific time period with a clause that says 'The time frame will be three years, unless a court finds that overboard.
It decided courts could ignore, or "blue pencil," portions of documents but not add terms or rewrite provisions. Then the zone will be enforced for a period of 18 months.' It gives a cascade effect that sets up an alternative time period in case a court deems the agreement overboard." Milligan said he believes most agreements drafted in the past 10 years don't contain that provision and medical groups will need to rewrite agreements if such language is not already there.
He also has no way of knowing whether the backdating will be scrutinized by a regulatory authority or even a Court.
For example, will the document be provided in support of the party’s tax position giving the impression that a signed legal contact was in place before it was?