I was fortunate to receive the PPP loan mid-April and used those funds almost exclusively for payroll. Therefore, I have paid the providers at 100% salary throughout the entire pandemic. I had numerous discussions about adjusting salary to meet the hours worked, and was finally successful last week getting my providers to accept around 10% in salary for a 10% decrease in their hours. (I had no catastrophe clause in their contract so to my understanding I had to compensate at contracted rate despite changes in patient flow.)
My question is:
How were other Pediatrician owners successful in directing a renegotiation of their provider contracts?
How many discussions/weeks did it take to get a provider to agree to changes?
Is there legal protection for an employer if they need break an employment contract in order to avoid financial ruin for the clinic and/or bankruptcy?
I’d love some coaching on this so I can continue to serve our kids and families without having to sacrifice my personal financials to honor a provider contract.