Transitioning to a new practice as a physician is often an exciting time, with opportunities for professional growth and financial gain. But before you sign a new physician employment agreement, you must review it carefully and understand exactly what you are agreeing to.
It is often helpful to have a healthcare attorney review your contract with you before accepting a new offer of employment. Below, learn what you should know before signing a physician employment contract and how an attorney can assist you.
Key Terms To Review in Your Physician Employment Contract
Your physician employment contract will include a wide range of important terms that you need to carefully review to ensure your understanding and agreement. Below are the core items your employment contract will likely cover.
Work Obligations
What, exactly, will this job require of you? Start by closely reviewing the work obligations and responsibilities laid out in your employment contract. Do they match what was discussed in the interview?
The contract should include details such as:
- How full-time equivalents (FTEs) are defined for this position, indicating your obligations as a full-time physician that may differ from the typical 40-hour workweek
- The expected clinical volume, and how this is measured
- The clinical schedule, including weekends, nights, and holidays
- The work location or locations
- Your non-clinical duties or managerial responsibilities
If the contract does not address any of these points, reach out to the hiring manager, recruiter, or HR representative for clarification.
Compensation
Compensation may be one of the strongest selling points for your new position, but you must understand the terms of your payment to determine whether the compensation structure is worthwhile. First, it is important to consider compensation compared to the work obligations or responsibilities. The compensation may be higher for this new position compared to your previous one, but the responsibilities may also be significantly higher.
Consider all of the terms of your compensation structure, including:
- Base salary
- Sign-on bonuses or other one-time payments (relocation stipends, retention bonuses, student loan reimbursements, etc.) and any terms for clawback should you leave the practice within a certain time priod
- Productivity bonuses and how you would earn them, with clear explanation of thresholds and when they are paid
- Benefits (health insurance, retirement plans, PTO, etc.)
Compare these terms to the workload required in your contract and assess how this structure differs from your previous position.
Call Coverage and Time Off
Your physician employment contract should be clear about the on-call requirements for the job and the paid time off provided for the position. Physician contracts are often vague about on-call requirements, stating that the call will be comparable to other colleagues. If you are not sure what will be required of you, don't hesitate to clarify with the hiring manager.
Similarly, the contract should clearly lay out the terms for taking time off, including how you accrue PTO, how much PTO you can take at one time, how much advance notice you need to provide, how your patient load will be covered in your absence, etc.
Exit Strategy
While you may not currently be thinking about how you would leave your new position, reviewing the exit terms and restrictive covenants in the physician employment contract is important to avoid entering a position that severely limits your future opportunities.
Most practices, hospitals and private equity-ownedgroups require physicians to sign non-compete and non-solicitation clauses. Review these terms closely to understand any limitations you are agreeing to for future work opportunities, along with limitations on opportunities during your employment, such as teaching or consultant work.
Additionally, review any termination clauses to understand the conditions under which your position could be terminated. Termination clauses should cover severance pay, grounds for termination, and required notice periods.
Malpractice Coverage and Tail Insurance
Finally, your physician employment contract should detail the malpractice insurance coverage and tail coverage that you will be protected under as a practicing physician. Tail coverage is malpractice coverage that extends for a period after your employment ends, and not all practices agree to pay for this type of insurance.
Work With a Healthcare Attorney for Legal Doctor Employment Agreement Review
Physician employment contracts are often complex, going to great lengths to protect the practice. Thoroughly understanding the terms of your contract before signing it can help you feel confident starting your new position.
At Empower Healthcare & Legal Solutions PLLC, I provide legal guidance and support for physicians entering new employment agreements, separating from hospital systems, starting solo practices, and navigating other legally complex ventures. Schedule a consultation today by calling 845-581-7859 or filling out my contact form.