What Are Common Physician Concerns in Employment Agreements?
Physicians who must review their physician employment agreements tend to express common concerns, as our data has shown. Since these contracts outline important clauses for physicians’ working relationships, such as compensation and benefits, they need to be fair, legal, and transparent.
ContractsCounsel, an online legal marketplace where clients hire lawyers to draft and review their contracts, has found that the top concerns physicians have about physician employment agreements include non-compete and restrictive covenants, indemnification, liability coverage, compensation structures, contract duration, and contract termination.
We explore these, and how lawyers can help to include them in the agreement, in the rest of this article.
Note: Our research and analysis comes from real, anonymized physician employment agreement projects posted on the ContractsCounsel platform.
Non-Compete and Restrictive Covenants
Concern 1: A leading physician concern is that they won’t be able to take other employment opportunities after the contract ends.
How lawyers help: Healthcare attorneys will check non-compete scope, location, and duration. The document should be legally compliant without having excessive restrictions.
Indemnification and Liability Coverage
Concern 2: Physicians don’t want to be liable for issues such as malpractice, and they worry that the employer’s insurance doesn’t offer coverage for this.
How lawyers help: By reviewing all indemnification and liability clauses, lawyers check that physicians are protected against malpractice. They want the employer to carry the appropriate risk.
Compensation Structure and Bonuses
Concern 3: If there are unclear or vague compensation and bonus clauses, these can cause confusion and disputes.
How lawyers help: Healthcare attorneys check clauses discussing base pay and bonuses. These should be provided based on performance.
Contract Duration and Termination Clauses
Concern 4: How long the contract lasts and how much notice to give for ending it are common concerns for physicians. They require clarity about termination without cause.
How lawyers help: Lawyers keep termination clauses and processes fair, such as with advance notice periods, and check what rights physicians have when ending the contract themselves.
Benefits and Coverage Details
Concern 5: Benefits and coverage are clauses that physicians want clarity about because they can cause issues if they’re not properly defined. Ambiguous terms can cause disappointment and misunderstandings.
How lawyers help: Lawyers record all benefits clearly and succinctly, so there is no confusion surrounding them. These must match industry standards and verbal employment offers that were previously discussed.
Employment Classification and Tax Implications
Concern 6: If a physician is listed as an independent contractor, this has certain tax and liability concerns.
How lawyers help: Lawyers check the physician’s employment classification, such as if they’re a 1099 contractor. This needs to be aligned with state labor laws and IRS regulations.
Ambiguities in Duties and Responsibilities
Concern 7: Physicians want to know what duties and schedules they have, so that there are no arguments or failed expectations.
How lawyers help: Healthcare attorneys check the physician employment agreement for clear and measurable expectations. This avoids disputes and physician overwork.
Partnership and Ownership Opportunities
Concern 8: Our research reflects that physicians want to understand partnership, profit sharing, and opportunities for ownership.
How lawyers help: Lawyers make all terms transparent for both parties. They’ll run through partnership terms and confirm what’s required for ownership.
Key Takeaways
- Top physician concerns include non-compete clauses, compensation, and tax implications.
- They want terms that reflect their duties and ownership terms clearly.
- Legal review keeps the contract balanced, compliant, and aligned with business goals.
Need help with your physician employment agreement?
Visit ContractsCounsel, where you can post your project for free. Receive lawyer bids and connect with a vetted, experienced healthcare lawyer who will review your employment agreement.
