Physician Contract: 8 Key Items to Review
- An employment contract is a critical document for physicians,bridging expectations between the doctor and employer.It also allows physicians to negotiate terms that suit their needs.
- Ambiguous parameters for hourly work expectations can be a pain point.
- Non-compete clauses restrict physicians from working within a certain geographic area after contract termination.
Secure your future. In the fast-paced world of healthcare, a robust physician employment contract is key.Understand the eight critical items to review, including work expectations, non-compete clauses, and benefits. This article equips you with decisive insights on why tail coverage is more than a bonus, how to identify unrealistic incentives, and the importance of reciprocal indemnification clauses. Navigate the complexities with confidence, ensuring fair terms and protecting your interests. News Directory 3 is here to help physicians like you. What are the critical steps left to make sure your contract serves you?
Key contract items for physicians to review
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An employment contract is a critical document for physicians,bridging expectations between the doctor and employer.It also allows physicians to negotiate terms that suit their needs. However, not all contract provisions are in a physician’s best interest. Here are eight concerning items to watch for when reviewing a physician employment contract, according to Kyle Claussen, JD, CEO of Resolve, a physician-founded company focused on empowering physicians.
unclear work expectations
Ambiguous parameters for hourly work expectations can be a pain point. Contracts should clearly outline work schedules, office locations, call obligations, patient allocation, and research time with objective parameters.Physicians should ensure hourly or shift expectations are clearly defined to avoid unexpected long shifts or holiday work.
Unreasonable non-competes
Non-compete clauses restrict physicians from working within a certain geographic area after contract termination. These clauses should be carefully reviewed. A typical radius ranges from 2 to 50 miles,depending on the location. Restrictions in densely populated areas should be negotiated. Some states prohibit non-competes for physicians, in which case the clause should be removed.
Delayed benefits
Benefits are a meaningful draw for physicians in employed positions. A standard benefits package includes health insurance,disability insurance,paid leave,and a retirement plan. These benefits should take effect promptly upon employment. Delays in coverage can be risky, and COBRA costs should be negotiated to bridge any gaps.
Missing tail coverage
Tail coverage protects physicians from lawsuits after employment ends for incidents that occurred during their tenure. If the employer doesn’t offer tail coverage, the physician is responsible for the cost. Tail coverage can be more valuable than a signing bonus and should be carefully reviewed as part of the compensation package.
Unrealistic incentives
Employers often use production bonus structures to reward productivity. These systems can be based on billings, collections, or RVUs (relative value units). its crucial to ensure the targets are attainable and fair. Access to market data is extremely useful when negotiating these terms.
Unclear termination language
the termination section of a contract should spell out potential causes for termination. It should provide a realistic view of reasonable causes without being overwhelming.Clear termination procedures for both parties ensure equity and can be useful in the event of a wrongful termination suit.
One-sided indemnification clauses
An indemnification clause assigns duty for losses incurred by another party. These clauses should be reciprocal, protecting both the employer and the physician. Physicians should avoid one-sided clauses that make them responsible for damages not covered by malpractice insurance.
Intellectual property
Physicians with an interest in developing intellectual property or creating a social media following should ensure their contract clearly defines ownership and revenue rights. The contract should specify whether the employer has any claim to intellectual property created during the term of employment.
What’s next
Whether negotiating a first or tenth employment contract, physicians should carefully read the fine print and seek expert legal advice if any part of the contract is unclear.