What is a Physician Employment Agreement?
A physician employment agreement is a contract between a physician and healthcare employer, such as a clinic or hospital. This agreement outlines key aspects of their working relationship, such as their rights, roles, and compensation.
This agreement is essential to have drafted professionally because it prevents disputes, ensures there is no confusion regarding job roles, and meets all required regulations.
Read the rest of this article to learn about what’s included in a physician employment agreement and when to consult with a lawyer for the drafting and/or review of this legally-binding contract.
What Does a Physician Employment Agreement Contain?
A physician employment agreement contains key terms and clauses to govern the working relationship between the physician and healthcare employer. These include the following.
Compensation
The agreement needs to clearly define what the compensation is for the work, and it should identify if the physician will receive fixed or variable compensation.
- Fixed compensation. The physician receives a fixed salary that doesn’t depend on their job performance.
- Variable compensation. The physician’s performance in their job role can influence their compensation, which is why having more experience can increase one’s earnings.
Benefits
Besides compensation, the agreement might include benefits, such as time off from work, funding for education, and medical liability insurance. It’s important to have clarity on these benefits and understand what the physician needs to do in order to make use of them.
For example, reading more about the insurance coverage offered can ensure that the physician understands all the included terms.
Terms and Termination
The contract will have a start and end date for the agreement, as well as information about any conditions that need to be met during the term.
It should specify when and how contracts can be terminated by either party. Termination is usually linked to other key terms, such as non-compete restrictions, so they need to be in sync with them.
Schedule
The physician will want to check that the contract is clear about their shift details, weekly schedules, and opportunities for taking on additional assignments. It’s common for these agreements to include on-call time. Both parties should agree on when additional on-call time is required and if it will be compensated.
Non-Compete
A non-compete clause explains if the physician will encounter any restrictions after termination of the contract. This will specify a duration, location, and scope of practice, which have to be reasonable so that the physician can continue to have work opportunities once the contract of employment with their current employer is terminated.
How Should You Review a Physician Employment Agreement?
It’s essential to review the physician employment agreement before signing it so that you ensure you understand everything it contains. Here are some tips when reviewing your agreement.
Read Through the Entire Agreement
Take your time to read every word so that you’re sure you understand all terms. If you notice anything that’s vague or confusing, highlight it so that you can chat to a lawyer about it.
Consider Negotiating
Think about what you would want to amend in the contract. An example would be if the agreement contains unreasonable and unfair non-compete clauses that you’d like to change.
Check for Inconsistencies
You want to review your other documents, such as your employment offer and email correspondence with the employer, so that you notice any inconsistencies in the contract that should be edited.
Do Your Research
When reviewing compensation and benefits, compare what the contract offers with what other physicians are earning. This will help you gauge if the offer matches your work experience and credentials.
Check for Red Flags
One of the important reasons why you should give your physician employment contract your attention during the review process is because you might come across red flags that could cost you. Some of the most common red flags include the following:
- The contract doesn’t clearly define the physician’s working hours.
- Payment schedules and benefits are vague.
- The contract does not contain items that were previously discussed and agreed on.
- Termination clauses are mentioned but one-sided to favor the other party.
- Malpractice insurance coverage is unclear.
Should You Contact a Lawyer for a Physician Employment Contract Review?
Although it’s not always necessary to consult with a lawyer for your physician employment contract, such as if it’s clear and prioritizes your interests, there are times when it’s worth seeking legal guidance.
This includes if the contract is vague, confusing, or one-sided. Similarly, if it’s filled with technical or legal jargon that’s challenging to decipher, a lawyer will be able to help.
Here’s how a lawyer will assist you:
- They’ll check the contract for pay structure red flags, such as if the compensation isn’t realistic.
- They’ll protect you from restrictive non-competes.
- They’ll ensure the listed termination notice periods and exit traps are fair.
- They’ll explain legal jargon so that you understand all terms and clauses.
- They’ll ensure you have sufficient malpractice coverage.
- They’ll check agreement renewal terms so you don’t get locked into an unfavorable contract.
- They’ll negotiate all terms in the contract on your behalf, while having the expertise to know how to navigate the negotiation for the best outcome.
- They’ll check for legal compliance so you don’t violate any regulations that can cost you.
Where should you hire a lawyer for your physician employment contract review?
If you want a lawyer to review your physician employment contract, you should hire one from ContractsCounsel, an online legal marketplace that connects clients with experienced, skilled lawyers who have been vetted on the platform.
Here’s how to post a request for a review with a reliable, professional lawyer.
- Visit the ContractsCounsel marketplace.
- Post your project - it’s free.
- Provide some details about your project so that lawyers have clarity on what you need.
- Wait for bids. Lawyers will send you multiple bids to work on your project.
- Review the lawyers’ profiles based on factors such as their experience, fields of expertise, previous projects completed on the platform, and more.
- Choose a lawyer who’s aligned with your requirements and start working with them to obtain a professional legal review of your physician employment agreement. It gives you peace of mind that the contract is legally sound, fair, and protects your career.
