Assignment task:
Intermodal Health System, an integrated delivery system, has suffered losses averaging $100,000 per year per doctor on the physician practices it acquired several years ago. It has developed a plan to terminate the contracts of half of the physicians it now employs. Pursuant to their employment contract, each physician will receive a severance payment of $50,000 even though some of the physicians are nearing the end of their employment contracts. Intermodal also will waive covenants not to compete contained in contracts with terminated physicians. In addition, Intermodal plans to offer to its "most valued" terminated physicians lease agreements at favorable rental rates to continue to occupy the medical office space owned by an Intermodal subsidiary. You are a practicing health care lawyer and Intermodal comes to you and asks you to "bless" its plan. Do you see any issues?