Question: I am a physician in a solo practice and I need assistance recruiting an associate. I am talking to various physician recruitment agencies. How do I choose the right one and what should I look for in a contract with a recruitment firm?

A physician/client recently fell victim to a scam physician recruiting agency. The physician needed an associate to share call and office hours and he hoped to find someone who could later become a partner. Of course, the problem with having a busy practice is that it leaves little time to take care of business and to plan for the future. Thus, when he finally set aside time for this project, he was in desperate need of a quick solution. Hoping to improve his odds, he signed agreements with two recruiting agencies. The first recruiting agency was a legitimate agency. The second agency turned out to be a scam.

Upon receipt of the signed contract, the first legitimate agency went to work, found several candidates, coordinated a series of interviews and otherwise, served as a good matchmaker. As a result, a promising young physician was hired into the practice. The scam agency faxed in a bunch of resumes and did nothing more, until several months after the new physician had been hired by my client. Scam agency then obtained the name of the new associate, matched it with one of the resumes they had faxed and wrote a letter demanding their finder=s fee and threatening to sue!

The hiring physician then contacted me to ask if he had to pay the fee to the scam agency. The scam=s legal claim was based on a vague contract that Aentitled@ them to a fee, if the physician hired was someone previously Aintroduced@ by the firm. No other specific services were listed in the agreement and the term Aintroduce@ was not otherwise defined in the contract. So, did delivery by fax of a resume constitute an Aintroduction@ for which a fee was due? Who knows how a court would react to such a question? The problem is that it might cost more to litigate the matter than to pay the recruitment fee. Even then, you could still lose and end up paying for both the litigation (both sides!) and the recruitment fee. We settled the bill. It was a bitter pill, but a wise business decision and an important lesson.

By contrast, the legitimate agency=s contract was a model contract, that included the following points you should look for in such an agreement:

• A flat fee, paid in installments. Part of the fee (no more than 50%) is paid up front and part of the fee is paid up
• on a successful placement.
• A free second placement. If the first recruit leaves within 6 months or a year, the second recruitment is performed without additional charge or at a reduced fee.
• Services. The contract should include a specific list of services to be performed, to include creating a profile of the practice, screening potential candidates, coordinating travel arrangements and scheduling interviews.

General Advice: Be careful when entering into recruitment agreements. Don=t sign on with more than one agency. Like any important agreement, have it reviewed by your legal advisor before rushing into signing it. Take the time to talk to colleagues and find someone who has utilized the agency. Were they satisfied with the service? At the very least, ask the agency for references of former clients and talk to them. The best protection is to hire a reputable firm.

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