Understanding “Termination Without Cause” in Physician Contracts

⁢ Updated June 01, 2025

A “termination without cause” clause in physician contracts can leave doctors vulnerable. These clauses allow ⁤either the employer or employee to end the contract at any time, ⁢without providing ⁤a specific reason.⁣ This can create uncertainty and potential hardship for physicians, especially when facing unexpected job ⁣loss.

Dr. ashley⁣ Saucier, a pediatric emergency room physician in Louisiana, experienced ⁣this firsthand. After 10 years at a hospital,she‍ was abruptly terminated without⁢ cause following concerns ‍she voiced about patient safety and a new business partnership.Saucier⁢ said ‍she vaguely recalled the clause⁤ from her⁢ initial contract.

While the frequency of “termination without cause” firings⁣ remains unclear, ⁤anecdotal evidence suggests it’s not uncommon. Jackie Crain, ⁢a contract review specialist at Contract Diagnostics, notes‍ that while the provision is common, employers don’t always use it.

Scott Weavil, an attorney‍ specializing in physician contract review, notes that physicians ofen resign when thay anticipate termination. He added that smaller private practices with tighter finances‍ and⁣ personality conflicts ‍may pose a higher risk.

Dr. Cris Carillo, a family medicine physician ⁤in California, also faced abrupt termination. Like Saucier, Carillo had raised patient safety concerns and was‍ involved in unionizing efforts. He was later reinstated after a settlement.

Tim ⁤Jenkins, a senior representative with the Union of American Physicians and Dentists (UAPD), said terminations without cause sometimes⁢ occur during unionization⁤ drives. He said the union aims to protect physicians from unfair terminations and negotiate clear‍ contracts.

“In that moment in the conference room, your life flashes before your eyes,” ‍Saucier said, recalling her termination.
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Protecting⁣ Yourself

Several steps can definitely help physicians mitigate the risks associated with “termination without cause” clauses:

• Seek legal review: Have a legal expert review your contract before signing.
• Negotiate⁢ terms: Aim‍ for mutual termination clauses⁣ with notice periods, severance pay, and continued benefits.
• Be ⁢aware of red⁢ flags: ‍ Watch for signs of ‍”quiet firing,” such as exclusion from meetings or reduced responsibilities.
• Maintain your network: Keep in‍ touch with ⁤other physicians to facilitate a swift ⁣job search if needed.
• Build a financial safety net: ⁣ Save funds in a liquid account.

What’s ‍next

Even with precautions,terminations can⁢ happen. Experts advise moving forward and not⁢ dwelling on the situation. Weavil said that future employers are unlikely to view a termination ⁢negatively, especially given ⁢the frequency of job changes in the current medical landscape.