A Letter Of Intent Physician is commonly used in Canadian healthcare settings as an initial step in establishing formal physician employment or practice arrangements. This document serves as a preliminary understanding between healthcare organizations and physicians, outlining key terms while maintaining flexibility for detailed negotiations. It's particularly relevant when recruiting physicians for hospitals, clinics, or medical practices, and typically includes proposed terms for compensation, scope of practice, and facility arrangements. The document must align with provincial healthcare regulations, Medical Acts, and professional standards, while considering both public and private healthcare delivery models in Canada. While generally non-binding, it provides a structured framework for subsequent detailed negotiations and helps ensure all parties have a clear understanding of the proposed arrangement.
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1. Date and Parties: Opening paragraph identifying the date and full legal names of all parties involved, including any relevant professional corporations
2. Purpose Statement: Clear statement of intent to enter into formal negotiations regarding physician services/employment
3. Proposed Role: Overview of the proposed position, including specialty area and general scope of practice
4. Location and Facilities: Specification of the primary practice location(s) and available facilities
5. Proposed Terms: High-level overview of key terms including compensation structure, hours, and basic expectations
6. Timeline: Proposed timeline for negotiations and intended start date
7. Confidentiality: Statement regarding the confidential nature of discussions and any shared information
8. Non-Binding Nature: Clear statement that the LOI is non-binding except for specific provisions (such as confidentiality)
9. Expiration: Validity period of the LOI and conditions for extension
10. Signature Block: Space for signatures of all parties and dates
1. Due Diligence Process: Description of any preliminary due diligence requirements, used when credential verification or background checks are needed before formal negotiations
2. Exclusivity: Provision preventing parties from negotiating with others during a specified period, used in competitive situations
3. Regulatory Compliance: Acknowledgment of necessary regulatory approvals or licenses, included when specific regulatory requirements must be met
4. Cost Allocation: Statement regarding who bears the costs of negotiations and due diligence, included when significant costs are anticipated
5. Integration Plans: High-level overview of how the physician will be integrated into the practice, used for complex practice situations
1. Schedule A - Preliminary Compensation Structure: Basic outline of proposed compensation model and components
2. Schedule B - Proposed Services: Detailed list of medical services to be provided
3. Schedule C - Facility Details: Overview of facilities, equipment, and resources to be provided
4. Schedule D - Key Milestones: Timeline of key dates and milestones for negotiation and onboarding process
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