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Physician Employment Agreement

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A physician employment agreement deals with different topics, from compensation and benefits to job responsibilities and termination clauses. A physician employment agreement plays a major role in the healthcare industry. Physicians must understand the important factors they should look for in a contract before signing any employment agreement. Also, it would be beneficial for them to consult a professional. Read on to know the common features of physician employment contracts in California.

Essentials of a Physician Employment Contract

  • Benefits

    The physician is entitled to various benefits such as health insurance, dental insurance, vision insurance, retirement plans, and paid time off. It is one of the important sections of the contract as it mentions not only the benefits but also the cost of benefits to the physician, any waiting periods, and any limitations on benefits.

  • Salary and Remuneration

    The contract should specify the physician's salary and way of payment and mention bonuses or incentives. The contract should also outline issues such as overtime, time off, and how pay will be calculated.

  • Confidentiality

    Confidentiality of patient information and other sensitive information related to the employer is an important aspect of a contract. It outlines non-disclosure agreements, non-disparagement clauses, and other aspects designed to protect the employer's reputation.

  • Non-Compete Clause

    This clause restricts the physician from working for a competitor or starting their practice for a certain period after leaving the employer. The contract should specify the duration and geographic scope of the non-compete clause.

Benefits of a Physician Employment Contract

  • Clarity and Protection

    The contract outlines the terms of employment and provides clarity for both parties. Having a written contract protects both the physician and employer in case of a dispute or misunderstanding.

  • Compensation and Benefits

    The contract outlines the physician's compensation and benefits, including salary, bonuses, insurance coverage, and retirement plans. It provides the physician with financial security and helps the employer to attract and retain talented physicians.

  • Job Duties and Expectations

    The contract clearly outlines the physician's duties and expectations. It helps to ensure that both parties are on the same page and helps to prevent misunderstandings or disputes.

  • Non-Compete Clauses

    The contract can include a non-compete clause that restricts the physician from working for a competitor or starting their practice for some time after leaving the employer. It helps to protect the employer's business interests and can be an important consideration for employers.

  • Intellectual Property

    The contract can specify who owns any intellectual property created by the physician while working for the employer. It can help prevent disputes over patents, trademarks, or copyright owners.

  • Confidentiality

    The contract can include provisions regarding the confidentiality of patient information and other sensitive information related to the employer. It helps protect patients' privacy and the employer's reputation.

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Key Terms Related to a Physician Employment Contract

  • Intellectual Property: This term refers to any creations or inventions made by the physician while working for the employer, such as patents, trademarks, copyrights, and trade secrets.
  • Confidentiality: This term refers to provisions in the contract that protect confidential information, such as patient records or trade secrets, from being disclosed to third parties.
  • Dispute Resolution: This term refers to provisions in the contract that outline how any disputes will be resolved, such as through arbitration or mediation.
  • Governing Law: This term refers to the law used to interpret and enforce the employment contract, which can be state or federal law.

Conclusion

It is important for physicians to fully understand the terms of their employment contract before signing and seeking legal counsel if necessary. Employers must also ensure that their employment contracts are fair and comply with applicable laws and regulations. By negotiating and agreeing to a well-crafted physician employment contract, both parties can benefit from a mutually beneficial employment relationship that provides financial security, job satisfaction, and a positive work environment.

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Darryl S. on ContractsCounsel
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Darryl S.

Founder and Counselor-at-Law
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31 Yrs Experience
Licensed in TX
The University of Texas School of Law Austin

I specialize in contract law and focus on making sure your contract is clear, protects your interests and meets your needs. You can expect fast, straightforward communication from me, making sure you understand every step. With my experience, you'll get a detailed review of your contract at a fair, fixed price, without any surprises. I have over 30 years of business and legal experience that I bring to your project. I graduated from The University of Texas School of Law with High Honors in 1993 and practiced at Texas' largest law firm. I have founded companies and so understand how to be helpful as both a lawyer and business owner.

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Corporate and transactional attorney in sixth year of practice. Focus areas include general corporate counsel, labor and employment law, business partnership matters, securities matters related to privately-held companies, and regulatory compliance in securities and finance matters.

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Matt Curry is a seasoned attorney specializing in real estate law and contract matters. With a deep understanding of contract law and extensive experience in negotiating and drafting contracts, Matt has earned a reputation for providing exceptional legal counsel to clients. As the founder and principal attorney at MPC LAW, Matt is committed to delivering tailored legal solutions. MPC LAW is renowned for its expertise in real estate transactions, lease agreements, contract negotiations, and dispute resolution. Matt's approach combines legal acumen with a client-centered focus, ensuring that every client receives personalized attention and strategic advice. Whether navigating complex real estate deals or resolving contractual disputes, Matt and his team at MPC LAW consistently achieve favorable outcomes for their clients. With a track record of success and a commitment to excellence, Matt Curry and MPC LAW are trusted partners for individuals and businesses seeking reliable legal counsel in real estate and contract matters.

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Born in Cleveland, Ohio - 9/15/1974 Lived in Cleveland all my life went to college at Ohio Wesleyan University - graduated in 1996 went to law school at Cleveland Marshall College of Law - graduated in 2001 passed the OH bar exam in 2003 worked at the OH Atty General's office, at cuyahoga county prosecutor office and as a solo practitioner

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Employee Rights

Physician Employment Agreement

Washington

Asked on Aug 1, 2023

Physician employment agreement voting rights?

I am a physician who is currently being offered a position at a hospital and I have been asked to sign an employment agreement. I am interested in understanding my voting rights as a physician under this agreement, as I want to ensure I have a say in decisions that will affect my practice. I am seeking legal advice to ensure I understand the terms of the agreement and what rights it grants me.

Merry A.

Answered Aug 11, 2023

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.

Read 1 attorney answer>

Employment

Physician Employment Agreement

North Carolina

Asked on May 22, 2023

When to use a physician employment agreement?

I am a physician who has been approached by a practice to join their team. I am interested in learning more about the details of the agreement that I will be signing, including when a physician employment agreement should be used. I want to make sure that I am making the best decision for my career and that I am fully informed when signing the agreement.

N'kia N.

Answered May 23, 2023

In North Carolina, written employment agreements between medical groups and the physicians that they employ are standard. A reputable group will almost always present a proposed agreement to a prospective employee without being prompted. Sometimes, the proposed agreement is in the form of an "offer letter" that, once signed, will become the contract between the parties. Before signing any proposed agreement, a prospective employee should ensure that it accurately reflects what the parties have agreed to. It should include all of the agreed-upon terms and should be written clearly enough that an outside third party could interpret what the parties intended without seeking further explanation. Additionally, a prospective employee should pay close attention to contract clauses intended to have long-term effects, including but not limited to "restrictive covenants" such as non-disclosure, non-competition, or exclusivity provisions. Last, a prospective employee might consider having an attorney review a proposed employment agreement before signing. Good luck!

Read 1 attorney answer>

Employee Rights

Physician Employment Agreement

Connecticut

Asked on Jul 11, 2023

Physician employment agreement non-solicitation clauses?

I am a physician who is currently in the process of negotiating an employment agreement with a hospital. I am concerned about the non-solicitation clause in the agreement, as I do not want to be restricted from building relationships with my patients should I choose to leave the hospital in the future. I am looking for guidance on how to structure this clause to ensure that I am able to maintain my professional relationships with patients.

Thomas L.

Answered Aug 15, 2023

Non-Competes in Connecticut for physicians are limited to 15 miles and one year. In addition, a non-compete agreement is not enforceable if the employment relationship is terminated by the employer without cause, or the agreement is not made in anticipation of, or as part of, a partnership or ownership agreement. Aks your prospective employer if they are aware of Connecticut law, and in particular Conn. Gen Stat. § 20-14p.

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Employee Rights

Physician Employment Agreement

Texas

Asked on Jul 5, 2023

Physician employment agreement confidentiality?

I have recently accepted a position as a physician at a new practice and I have been asked to sign an employment agreement. I am interested in understanding what type of confidentiality is required in this agreement, as I do not want to compromise any of the practice's confidential information. I would like to know what the agreement states about confidentiality and what the consequences are for any breach of confidentiality.

Mark D.

Answered Aug 4, 2023

This would require a review of the agreement. The typical cost for such a review is $750 but can cost more depending on the complexity of the issues involved.

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Business Contracts

Physician Employment Agreement

North Carolina

Asked on Jul 29, 2023

Can a physician employment agreement be digital?

I am a physician looking to enter into an employment agreement with a hospital. I am currently in the process of negotiating terms of the agreement, and am considering the possibility of signing a digital version of the agreement. I want to know if this is legally permissible, and if there are any potential risks or considerations associated with signing a digital agreement.

Nicholas M.

Answered Aug 11, 2023

The federal ESIGN Act, passed in 2000, gives full force and effect to digital signatures with the same weight as "wet" signatures. However, you should discuss this with an Attorney for your specific agreement if you are concerned. An Attorney can research your specific industry, regulations, and state statutes that may impact digital signatures or have specific requirements around digital signatures that are different from other documents.

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