Healthcare Employment Agreement (Montana)

HEALTHCARE EMPLOYMENT AGREEMENT (MONTANA)

PARTIES

Effective Date: [__/__/____]

1. ENGAGEMENT AND SCOPE OF PRACTICE

1.1 Employer engages Provider as a [Physician / Nurse Practitioner / Physician Assistant] licensed in good standing under MCA Title 37, Chapter 3 (physicians) / Chapter 8 (nurses) / Chapter 20 (PAs).

1.2 Provider shall practice within the scope authorized by the Montana Board of Medical Examiners and applicable statutes, and in accordance with the Montana Medical Practice Act, MCA § 37-3-101 et seq.

1.3 Supervision / Collaboration (NPs / PAs). For PAs, a supervision agreement under MCA § 37-20-301 et seq. is required and attached as Exhibit A.

☐ Provider is a Physician
☐ Provider is an APRN / Nurse Practitioner
☐ Provider is a Physician Assistant

2. DUTIES

2.1 Provider shall devote [full-time / __ hours per week] to clinical practice at [LOCATION(S)].

2.2 Provider shall maintain: (a) active Montana license; (b) DEA registration; (c) NPI; (d) Medicare/Medicaid enrollment as required; (e) hospital privileges at [HOSPITAL], if applicable.

2.3 Provider shall comply with HIPAA, 42 CFR Part 2 (where applicable), and Montana confidentiality statutes including MCA § 50-16-501 et seq. (healthcare information).

3. COMPENSATION

3.1 Base Salary: $[______] per year, payable per Employer's regular payroll schedule.

3.2 Productivity / Incentive: [wRVU / collections-based formula]. Any productivity formula must comply with the federal Anti-Kickback Statute (42 USC § 1320a-7b), Stark Law (42 USC § 1395nn), and must not constitute prohibited fee-splitting under Montana law (see MCA § 37-3-323, unprofessional conduct).

3.3 Benefits: Health, dental, vision, retirement ([401(k) / SEP]), PTO of [__] days, CME allowance of $[____] and [__] days, professional dues, licensing fees.

3.4 Sign-On Bonus / Relocation / Education Repayment. $[______], subject to pro-rata repayment if Provider voluntarily terminates within [__] months. Repayment obligations of bona fide loans, relocation costs, signing bonuses, and tuition repayment are expressly permitted under MCA § 28-2-724 (as amended by HB 620, eff. Jan 1, 2026).

4. MALPRACTICE INSURANCE AND TAIL COVERAGE

4.1 Employer shall procure and maintain professional liability insurance of not less than $[1,000,000] per claim / $[3,000,000] aggregate.

4.2 Tail Coverage (Extended Reporting Endorsement). Upon termination, tail coverage shall be procured by:
☐ Employer at its sole cost
☐ Provider at Provider's sole cost
☐ Allocated [__]% Employer / [__]% Provider

4.3 Provider shall cooperate in the defense of any claim and comply with all conditions of the policy.

5. TERM AND TERMINATION

5.1 Initial Term: [__] years from the Effective Date, automatically renewing for successive [__]-year terms unless either party gives [__] days' written notice.

5.2 Termination Without Cause. Either party may terminate on [60–90] days' written notice.

5.3 Termination For Cause (immediate): (a) loss/suspension of license; (b) loss of DEA registration; (c) Medicare/Medicaid exclusion (42 USC § 1320a-7); (d) felony conviction or crime of moral turpitude; (e) material breach uncured after [30] days' notice; (f) loss of hospital privileges; (g) death or disability extending beyond [__] days.

5.4 Provider Termination For Cause. Provider may terminate for Employer's material breach after [30] days' written notice and opportunity to cure.

6. RESTRICTIVE COVENANTS — MONTANA LIMITATIONS

6.1 No Non-Compete. The parties acknowledge MCA § 28-2-703 voids contracts restraining a lawful profession, and MCA § 28-2-724 (as amended) prohibits geographic restrictions on physician practice for contracts entered or renewed on or after January 1, 2026. No post-employment non-compete is imposed.

6.2 No Patient Non-Solicitation (Physicians). Effective January 1, 2026, restrictions on a physician's right to treat, advise, consult with, or solicit current patients of Employer are prohibited under MCA § 28-2-724. None is imposed here.

6.3 Permitted Restrictions. The following narrowly tailored provisions remain enforceable:
(a) Confidentiality of trade secrets and patient PHI (HIPAA, MCA § 50-16-501 et seq.);
(b) Non-solicitation of Employer's employees for [12] months post-termination;
(c) Return of property and records;
(d) Repayment of bona fide loans, relocation, signing bonus, and tuition expenses per § 6.4.

6.4 Liquidated Repayment. Provider shall repay $[______] of sign-on/relocation/education amounts on a pro-rata basis if Provider voluntarily terminates within [__] months, as expressly permitted by MCA § 28-2-724.

7. PATIENT RECORDS AND CONTINUITY OF CARE

7.1 All patient records remain property of Employer, subject to Provider's right of reasonable access for continuity of care, defense of claims, and licensure matters.

7.2 Upon termination, Employer shall provide patient notification consistent with Montana Board of Medical Examiners guidance on patient abandonment and continuity, and shall not interfere with patient choice of provider.

8. REPRESENTATIONS

8.1 Provider represents: (a) license is active and unrestricted; (b) no pending board investigations or NPDB reports except as disclosed; (c) no Medicare/Medicaid exclusion; (d) all credentialing information is true.

9. COMPLIANCE

9.1 Parties shall comply with: HIPAA/HITECH; Anti-Kickback Statute; Stark; False Claims Act (31 USC § 3729); Montana Medical Practice Act; and MCA § 37-3-323 (no fee-splitting / unprofessional conduct).

9.2 Any provision later determined to violate Anti-Kickback / Stark / Montana law shall be reformed or severed.

10. DISPUTE RESOLUTION

10.1 Pre-Suit Medical Legal Panel. Any malpractice claim asserted between the parties or by a patient is subject to mandatory pre-suit submission to the Montana Medical Legal Panel under MCA § 27-6-101 et seq.

10.2 Mediation. Non-malpractice disputes shall first be submitted to mediation in [COUNTY], Montana.

10.3 Forum / Governing Law. This Agreement is governed by Montana law. Venue: state district court for [____________] County, Montana.

10.4 ☐ Optional binding arbitration under the Montana Uniform Arbitration Act, MCA § 27-5-101 et seq.

11. GENERAL PROVISIONS

11.1 Assignment: Not assignable by Provider; assignable by Employer to a successor.
11.2 Notices: Written, to addresses on signature page.
11.3 Severability: Per MCA § 28-2-703, any restraint of profession is void to that extent; remainder enforceable.
11.4 Entire Agreement; Amendments in writing signed by both parties.

SIGNATURES

SOURCES AND REFERENCES

• MCA § 28-2-703 (restraint of profession void)
• MCA § 28-2-704; § 28-2-705 (statutory exceptions)
• MCA § 28-2-724 (HB 620, 2025; physician non-compete and patient non-solicitation ban, eff. Jan 1, 2026)
• MCA § 37-3-101 et seq. (Montana Medical Practice Act)
• MCA § 37-3-323 (unprofessional conduct / fee-splitting grounds)
• MCA § 27-6-101 et seq. (Montana Medical Legal Panel Act)
• 42 USC § 1320a-7b (Anti-Kickback); 42 USC § 1395nn (Stark)
• HIPAA, 45 CFR Parts 160, 164; MCA § 50-16-501 et seq.