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physicians were contained in the employment agreements between
SWMG and each SWMG physician, discussed below.
The "Physician Access Bonus" was $35,000 for each of SWMG's
full-time physicians, plus a prorated portion of $35,000 for each
of up to five part-time physicians. Forty-four percent of the
amount so calculated was payable 2.5 months after the November 1,
1994, effective date of the PSA (January 15, 1995), with the
balance payable in two 28-percent installments on the first and
second anniversaries of the PSA's effective date. When the PSA
was renegotiated for the period after its initial 2-year term,
there was no comparable provision for a "Physician Access Bonus".
SMF did not pay physician access bonuses in connection with its
acquisition of any other physician practices.
The PSA also secured for SWMG a role in the governance of
SMF. Pursuant to the PSA, SWMG was entitled to designate one of
its member physicians to serve as a voting member of SMF's board
of directors during the first year of the agreement, and one to
serve as a nonvoting member for the term of the agreement.18 SWMG
was also entitled to designate representatives on various
management and planning committees of SMF and Sutter Health. In
addition, as one of SMF's contracting medical groups, SWMG was
entitled to nominate three of the seven members of SMF's Area
18 SMF also agreed to "facilitate discussions" between SWMG
and Sutter Health to evaluate and restructure provisions
regarding permanent physician members of SMF's board of
directors.
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Last modified: March 27, 2008