New Mexico Healthcare Practitioner Employment Agreement

New Mexico Healthcare Practitioner Employment Agreement

This Healthcare Practitioner Employment Agreement ("Agreement") is entered into as of [__/__/____] (the "Effective Date") by and between:

Employer: [________________________________], a [________________________________] organized under the laws of New Mexico, with principal place of business at [________________________________] ("Employer"); and

Practitioner: [________________________________], a [☐ MD ☐ DO ☐ CRNA ☐ CNM ☐ CNP/NP ☐ PA ☐ Psychologist ☐ Pharmacist] licensed in New Mexico (License No. [____________]) ("Practitioner").

1. Position and Scope of Practice

1.1 Position. Employer engages Practitioner as [________________________________] to provide clinical health care services within Practitioner's scope of licensure under the New Mexico Medical Practice Act (NMSA § 61-6-1 et seq.), Nursing Practice Act, Physician Assistant Act, or other governing licensure statute, as applicable.

1.2 Scope of Practice. Practitioner shall practice only within the scope of practice authorized by Practitioner's New Mexico license, applicable board rules, and any collaborative practice agreement required under NMSA § 61-6-7 (PA) or 16.12.2 NMAC (CNP/CRNA/CNM).

1.3 Site of Service. Primary practice location: [________________________________]. Practitioner shall not be required to provide services outside New Mexico without written consent.

1.4 Clinical Autonomy. Employer shall not interfere with Practitioner's exercise of independent professional medical judgment regarding patient care.

2. Term and Termination

2.1 Term. Initial term: [____] years commencing on the Effective Date, renewable by written agreement.

2.2 Termination Without Cause. Either party may terminate upon [____] days' written notice.

2.3 Termination For Cause. Employer may terminate immediately upon: (a) loss, suspension, restriction, or surrender of Practitioner's NM license; (b) exclusion from Medicare/Medicaid (42 U.S.C. § 1320a-7); (c) loss of DEA registration; (d) material breach not cured within [____] days; (e) conviction of a felony or crime of moral turpitude.

2.4 Patient Notification on Termination. Upon termination, parties shall reasonably cooperate on patient notification consistent with AMA Opinion 1.1.5 and NM Medical Board guidance on continuity of care.

3. Compensation

3.1 Fee-Splitting Prohibition. Compensation shall not violate NMSA § 61-6-15 (prohibition on fee-splitting or division of professional fees with unlicensed persons), federal Anti-Kickback Statute (42 U.S.C. § 1320a-7b), or Stark Law (42 U.S.C. § 1395nn). Productivity compensation shall be set in advance and reflect fair market value.

4. Benefits

☐ Health, dental, vision insurance
☐ Retirement plan ([____________])
☐ Paid time off: [____] days/year
☐ Sick leave per NM Healthy Workplaces Act (NMSA § 50-17-1 et seq.)
☐ Disability and life insurance
☐ Licensure / DEA / board renewal fees
☐ Professional society dues

5. Professional Liability Insurance

5.1 Coverage. Employer shall procure and maintain professional liability insurance with limits of not less than $[____________] per occurrence / $[____________] aggregate covering Practitioner's services hereunder.

5.2 Patient Compensation Fund / QHP Status. Employer shall [☐ apply for / ☐ maintain] qualified healthcare provider ("QHP") status under the New Mexico Medical Malpractice Act (NMSA § 41-5-1 et seq.) through admission to the Patient Compensation Fund administered by the Office of Superintendent of Insurance, and shall pay the applicable PCF surcharge. QHP status caps liability under NMSA § 41-5-6 and provides Medical Review Commission protection under NMSA § 41-5-15.

5.3 Tail Coverage. Upon termination, [☐ Employer / ☐ Practitioner] shall procure extended reporting period ("tail") coverage at a cost of approximately $[____________] or [____] times the final annual premium. Allocation of tail responsibility varies by termination cause:

6. Restrictive Covenants — New Mexico Limitations

6.1 No Post-Termination Non-Compete. Pursuant to NMSA § 24A-4-2 (Health Care Practitioner Agreements Act, recompiled from § 24-1I-2), any provision restricting Practitioner's right to provide clinical healthcare services in New Mexico after termination, renewal, or expiration of this Agreement is VOID and UNENFORCEABLE. No such restriction is imposed.

6.2 Choice of Law / Forum. Pursuant to NMSA § 24A-4-3, any provision (a) making this Agreement subject to laws of another state, or (b) requiring litigation in another state, is void. This Agreement is governed by New Mexico law and any action shall be brought in the courts of New Mexico.

6.3 Permitted Restrictions During Employment. Practitioner shall not, during the term, engage in outside clinical practice that conflicts with duties hereunder without Employer's prior written consent. This restriction terminates upon termination of employment.

6.4 Non-Solicitation of Employees. For [____] months after termination, Practitioner shall not solicit Employer's employees for employment elsewhere.

6.5 Confidentiality and Trade Secrets. Practitioner shall maintain confidentiality of Employer's proprietary information consistent with the New Mexico Uniform Trade Secrets Act (NMSA § 57-3A-1 et seq.) and HIPAA (45 C.F.R. §§ 160, 164).

7. Medical Records and Patient Lists

7.1 Patient medical records are property of Employer, subject to NM Medical Board regulations (16.10.17 NMAC) and HIPAA. Upon termination, patients shall be permitted to designate the practitioner of their choice for ongoing care.

7.2 Practitioner may retain a copy of a patient list solely for purposes of issuing termination/continuity-of-care notices required by professional ethics and NM Medical Board guidance.

8. Credentialing, Licensure, and Compliance

8.1 Practitioner shall maintain in good standing: NM license; DEA registration; board certification (if held); hospital privileges as required by position; participation in Medicare, Medicaid, and contracted payors.

8.2 Practitioner shall report to Employer within [____] hours any: malpractice claim, NPDB report, board investigation, payor exclusion, license action, or arrest for any felony or healthcare-related offense.

9. Assignment of Inventions and Outside Activities

9.1 Inventions made within the scope of employment using Employer resources are assigned to Employer, subject to limitations of NMSA § 50-9-1 et seq. (analogous statutes if applicable; NM does not have a parallel inventor-protection statute — confirm).

9.2 Outside professional activities (expert witness work, speaking, publications) require [☐ disclosure only / ☐ prior written approval].

10. Dispute Resolution

10.1 Parties shall first attempt mediation under the auspices of [________________________________].

10.2 Unresolved disputes shall be litigated in the [☐ District Court for ____________ County, New Mexico / ☐ arbitrated under JAMS rules in ____________, New Mexico]. Forum and choice of law are New Mexico per NMSA § 24A-4-3.

11. General Provisions

11.1 Entire Agreement. This Agreement and Exhibits constitute the entire agreement and supersede prior negotiations.

11.2 Amendment. Written and signed by both parties.

11.3 Severability. If any provision is held unenforceable, the remainder shall continue in effect. Specifically, if any restrictive covenant is held void under NMSA § 24A-4-1 et seq., the balance of this Agreement remains enforceable.

11.4 Governing Law. New Mexico law governs.

11.5 Notices. All notices in writing to addresses above or as updated.

12. Signatures

Exhibits

• Exhibit A — Quality / Productivity Metrics
• Exhibit B — Schedule of Benefits
• Exhibit C — Job Description / Duties

Sources and References

• NMSA 1978, §§ 24A-4-1 to 24A-4-5 (Health Care Practitioner Agreements Act; recompiled from §§ 24-1I-1 et seq. effective July 1, 2024)
• NMSA 1978, §§ 61-6-1 et seq. (Medical Practice Act)
• NMSA 1978, § 61-6-15 (fee-splitting / grounds for action)
• NMSA 1978, §§ 41-5-1 et seq. (Medical Malpractice Act / Patient Compensation Fund)
• 16.10 NMAC (NM Medical Board regulations)
• 42 U.S.C. § 1320a-7b (Anti-Kickback); 42 U.S.C. § 1395nn (Stark)