How a Business Hired a Lawyer to Review a Physician Employment Agreement in California

Generally, a physician employment agreement contains most of the same terms as any other employment agreement. However, some of the terms must be tailored to the role. Additionally, the agreement may contain terms that are specific to the physician role. Below are some key terms in physician employment agreements: License and Continuing Education - By law, to be a physician, an individual must obtain a professional license and then must earn continuing education credits to retain the license. Most physician employment agreements address these requirements, including such factors as whether the employer or the employee is responsible for the costs associated with compliance. Privacy and Confidentiality - Physicians have more privacy and confidentiality obligations than the typical employee. For example, a physician must comply with the Health Insurance Portability and Accountability Act ("HIPAA"). Physician employment agreements commonly address standards regarding patients' information, as well as the employers' proprietary information. Special Restrictions - Due to the nature of the physician role, employers might prohibit their physician employees from providing physician services elsewhere ("non-competition agreement"). Also, some might prohibit their physician employees from soliciting patients to receive physician services elsewhere ("non-solicitation agreement").   Special considerations - Further, as applicable, physician employment agreements will detail any special considerations for the role, such as stock options, relative value unit ("RVU") expectations, or volunteering, teaching, or scholarship requirements.

You would be wise to request that an attorney review the proposed employment agreement before you sign. In addition to ensuring that you would have voting rights, there are numerous other terms that should be carefully reviewed, such as non-compete language if and when you leave employment; TRAP language (usually requiring an employee to reimburse the employer if the employee receives training during his or her employment); terms and conditions of employment (such as schedule, work type, and duties); vacation hours; how disputes will be resolved; and, sometimes, future severance.