Key Contract Considerations for Physicians – Jenyce M. Woodruff, Esq.
A Physician Employment Contract is an agreement (usually written) that is entered into between an employer and employee outlining the specific terms of employment. The practice of medicine is highly regulated, thus there are many differences between a physician contract and that of other professions. It is important to remember that when you sign a contract you are essentially stating that you agree with and understand everything that is in the contract and that you are binding yourself to the terms stated in the agreement – an act that has a significant impact on a physician both financially and professionally.
1. Standard Contracts
Many employers will tell you that the contract that they are offering you, and the rest of your employment class, are standard and thus, non-negotiable. First, everything is negotiable. Second, standard contracts can be downright dangerous.
- Standard Contracts may not take into account your agreed upon services throughout the entirety of the contract.
- Standard Contracts may be silent on issues important to you.
- Standard Contracts may contain unenforceable provisions.
- Standard Contracts may contain troublesome clauses that should be renegotiated or at the least, fully understood.
- Indemnification Clause
- Entire Agreement
- Choice of Venue
- Intellectual Property
2. Qualifications for the Position and Requirements for Advancement
The employment contract handed to you may require you to be board certified and state licensed on day one of your employment, however your practical timelines may be a bit different. It is important to let your potential employer know and modify the agreement accordingly. What about gaining the required hospital privileges? Will your potential employer help you to obtain those? Never sign the employment contract with the intention of working something out later – your signature binds you to the terms in the contract. If partnership is the goal, specifying what it takes to get to partnership is a smart decision. Termination without cause can easily derail years of work towards a professional achievement (many times accompanied by a financial windfall). It is recommended that the “partnership track” be completely defined and protected by, among other things, restricting certain employer actions if the physician meets clearly defined criteria.
3. Know your Hidden Costs
Your base salary and possible bonuses are clearly written on your contract, but what are you really being paid? It’s imperative to take into account the various costs that you may be responsible for.
- Professional Liability Insurance
- Health Insurance
- Disability Insurance
- Continuing Medical Education Courses
- Medical Association and Licensing Dues and Fees
- Office Furnishings, Supplies and Equipment
- Medical Equipment
- Staff and Personnel
- Business Expenses
4. Working Conditions
It’s not taboo to know how much you’ll be required to work. It is impossible to fairly evaluate an offer without all pertinent facts.
- It is important to know and agree to the medical services that you will be providing. It is not a stretch for a urogynecologist to practice general gynecology.
- Where will you be working? A private practice may require a doctor to travel between numerous locations, work at offsite clinics, etc. It is important to have a clear picture of what working for a particular employer entails.
- What will your hours be? Call schedule? Clinic hours? How many patients will you be expected to see per day? What about vacations, holidays and leave?
- Has your employer implemented the technology that you consider essential to your medical practice?
- Whether you will have a support staff greatly affects a physician’s medical practice.
5. Determining your Exit Strategy
The beginning of an employment is the best time to determine how you’ll exit, and yes, that can be negotiated. One must start with knowing the actual term of the contract (how long the employment will last) and then move on to the following:
- Termination With/Without Cause
- Restrictive Covenants
- Notice Requirements
While the enumerated list highlights some important contract considerations, the list of considerations that each individual must take into account is quite expansive. It is important to work with an attorney to ensure that your employment expectations are met and accounted for in an employment contract that you understand and agree to.
Email contracts@woodrufflawllc.com or call 412.449.9052 for more information.
Filed under: Business Law, Woodruff
