Pleasantville Community Hospital (PCH) determines that another cardiologist is required to meet the needs of the...

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Pleasantville Community Hospital (PCH) determines that another cardiologist is required to meet the needs of the patients in its service area. PCH recruits Dr. Smith. It agrees to provide fixed compensation of $400,000 year, payable in monthly installments, in exchange for full-time services from Dr. Smith during hours established by PCH at a location specified by PCH. PCH also will provide health and life insurance, participation in a retirement savings account, malpractice insurance and paid time off to Dr. Smith. Dr. Smith will work in an office owned by PCH, and PCH will provide support staff, equipment and supplies required by Dr. Smith to provide services to patients. Should Dr. Smith be classified as an employee of PCH or an independent contractor? Please explain your conclusion. Would your conclusion change if PCH contracts with Dr. Smith's professional entity rather than directly with Dr.Smith? Why or why not? Pleasantville Community Hospital (PCH) determines that another cardiologist is required to meet the needs of the patients in its service area. PCH recruits Dr. Smith. It agrees to provide fixed compensation of $400,000 year, payable in monthly installments, in exchange for full-time services from Dr. Smith during hours established by PCH at a location specified by PCH. PCH also will provide health and life insurance, participation in a retirement savings account, malpractice insurance and paid time off to Dr. Smith. Dr. Smith will work in an office owned by PCH, and PCH will provide support staff, equipment and supplies required by Dr. Smith to provide services to patients. Should Dr. Smith be classified as an employee of PCH or an independent contractor? Please explain your conclusion. Would your conclusion change if PCH contracts with Dr. Smith's professional entity rather than directly with Dr.Smith? Why or why not?

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