How To Terminate an Employee in a Healthcare Practice

At HR for Health, we understand that terminating an employee is never an easy decision, especially within a healthcare setting where team cohesion and patient care are paramount. Handling terminations with professionalism and compassion is essential, ensuring that all legal and ethical standards are met. 

Now, let’s explore the proper steps to take when you need to terminate an employee. We aim to help you manage this challenging process with the utmost care for all parties involved. What do you need to know?

  1. Review the employment contract: Ensure that any grounds for termination are consistent with the terms set out in the employee’s contract.
  2. Check company policies: Refer to your company’s employee handbook or policies to verify that the termination grounds are clearly covered and documented.
  3. Document performance issues: Record any performance reviews or disciplinary actions related to the grounds for termination.
  4. Gather evidence: Compile any relevant emails, reports, or witness statements supporting the termination decision.
  5. Consult legal advisors: Before proceeding, consult with legal counsel to ensure all actions comply with employment laws.
  6. Prepare documentation: Organize all documentation in chronological order to support the termination decision.
  7. Review with HR: Before the termination meeting, review all documentation with a human resources representative to ensure everything is in order.

Common Reasons for Termination in a Healthcare Setting

  1. Poor Performance: Employees who consistently fail to meet performance standards can jeopardize patient care and team efficiency. This can lead to costly mistakes and decreased patient satisfaction.
  2. Violation of Policy: Whether it’s breaching confidentiality or failing to comply with workplace safety regulations, policy violations are serious grounds for termination. Such breaches can have severe legal and reputational consequences for a healthcare practice.
  3. Unprofessional Conduct: This includes inappropriate behavior towards patients or colleagues, which can create a toxic work environment. Such behavior undermines teamwork and can lead to higher turnover rates.
  4. Attendance Issues: Chronic lateness or unexcused absences can disrupt patient care and burden other team members. It is crucial to maintain a reliable workforce to ensure optimal operational efficiency.
  5. Criminal Behavior: Any criminal activity, especially related to drug diversion or patient abuse, is immediate grounds for dismissal. These actions can endanger patients and expose the practice to legal action and severe penalties.

Why Thorough Documentation Matters

Thorough documentation is crucial in the termination process to protect your practice from potential legal challenges. It provides a clear and indisputable record of why the termination was necessary and justified. Detailed records demonstrate that the decision was not made hastily or without proper justification.

Proper documentation also ensures consistency and fairness in how terminations are handled across the organization. It serves as a reference point for future cases and helps maintain trust and transparency with your remaining staff.

What To Cover During the Termination Meeting

During the termination meeting, it’s important to be clear and concise about the reasons for the termination. Ensure the conversation remains professional and focused on the facts without becoming personal. Allowing employees to voice their thoughts in a controlled environment is crucial, as it can help prevent misunderstandings and reduce bitterness.

Prepare to answer any employee questions and provide them with information about the next steps, such as final paychecks and benefits. It’s beneficial to have a second HR representative present to witness the meeting and assist with any complex issues that may arise.

Severance and Benefits: How To Handle

Discussing severance and benefits can help ease the transition for both the employee and the practice. Be clear about what the employee is entitled to under their contract and any additional severance that may be offered. This conversation should also cover how benefits, such as health insurance and retirement plans, will be handled post-termination.

It’s important to follow through on all promises made during this conversation and to document all agreements. This helps maintain a positive relationship with the departing employee, ensures clarity, and avoids potential legal complications.

Prepare for the Impact on the Team and Patient Care

  • Communicate with the team: Address the termination with your team to prevent rumors and maintain morale. Ensure this communication is clear and empathetic to support a positive work environment.
  • Manage workload distribution: Fairly reassign the terminated employee’s responsibilities among the team. Consider temporary measures to manage workload until a permanent solution is found.
  • Offer support: Provide counseling or support services to help your team cope with the change. These resources are essential for maintaining mental health and productivity in the workplace.
  • Monitor patient care: Ensure that patient care remains uninterrupted and high-quality during the transition. Regularly check in with staff to identify any impacts the termination may have on care delivery.
  • Review and learn: Use the termination as a learning opportunity to review practices and policies within your healthcare setting. This can help identify areas for improvement and prevent similar issues in the future.

Document the Termination Process

  1. Prepare termination letter: Draft a formal termination letter outlining the reasons for and effective termination date.
  2. Record the termination meeting: Keep detailed notes or a formal record of what was discussed during the termination meeting.
  3. Finalize HR paperwork: Complete all necessary paperwork, including updating the employee’s status in your HR system.
  4. Manage access control: Ensure that the terminated employee returns all property and that their access to systems and facilities is revoked.
  5. Conduct an exit interview: If appropriate, conduct an exit interview to gather feedback and improve future HR practices.
  6. File documentation: Securely file all documents related to the termination in compliance with privacy laws and company policies.
  7. Follow up: If necessary, follow up with the terminated employee to resolve any outstanding issues, such as final pay or benefits.

Prepare for Possible Post-Termination Legalities

Anticipate and prepare for any potential legal challenges following a termination. Document all communications and keep them professional and factual. If the terminated employee makes a legal claim, ensure you have all the necessary documentation to defend your decision. Maintaining an organized and comprehensive file on each termination can significantly streamline any legal proceedings that might follow.

It’s also wise to debrief with your legal and HR teams to discuss lessons learned and refine future termination processes. This can help mitigate risks and improve your healthcare practice’s overall approach to employee management. Regularly updating your termination policies based on these discussions can prevent future legal complications and ensure compliance with evolving employment laws.

Contact HR for Health for Help Handling Terminations in a Healthcare Setting

Terminating an employee is a complex process requiring careful consideration and adherence to legal standards. At HR for Health, we specialize in helping healthcare practices manage HR issues professionally and compassionately. If you need assistance with terminations or other HR challenges, we can help you. Our expert team is ready to provide you with the support you need to protect your practice and care for your team. Contact us today to speak to our team.