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Physician Contract Review

physician employment
Lucian Milasan/123RF.com

When a physician is given a formal job offer, it is produced in writing, along with a contract that contains a lot of small print and legalese. It’s highly recommended that you have your contract reviewed by an experienced attorney before you sign on the dotted line. However, it can be difficult to find an attorney knowledgeable in the area of physician contracts. Below is a basic outline of how to find a reliable attorney and what your attorney will look for in your employment contract.

How to Find a Qualified Attorney

It seems like common sense to have a contract attorney look over a contract, right? Well, sort of. There are many different types of contracts, each with its own ins and outs. For example, an employment contract differs from a business contract. Even a teaching employment contract would have different parameters than a physician contract. It would be best to find an attorney who has specific experience in physician employment contracts. Here are a few ways to find a qualified attorney:

Ask a Friend

If you have friends that have signed a physician employment contract in your area, ask them for a referral. If they had a good experience with that attorney, they should be happy to pass the name along.

Local Bar Association

Call your city’s bar association. They have lists of attorneys that specialize in certain areas. They would likely be able to refer to you an attorney who has experience in physician contracts.

Online Search

You may also want to do a general search online for attorneys in your area that practice contract law and have experience in physician contracts in particular. If you are unsure about their level of knowledge when it comes to physician employment, call them and ask them specific questions about their experience. Most attorneys would be happy to oblige. If they cannot assist you, they could point you in the direction of someone who can.

When you find an attorney that you think might be a good fit, you can schedule a consultation. Most attorneys offer a 30-minute consultation free of charge. Make sure to bring your contract with you and ask questions regarding their experience in dealing with these types of employment contracts.

What an Attorney Looks For

When you hand your employment contract over to your attorney, there are some specific things that your attorney is going to look for:

Compensation and Benefits

These terms include the compensation for your employment and any added benefits you may be eligible to receive. Often, large hospital systems will offer a period of “guaranteed base salary” for a set period of time. You can negotiate the length of time, depending on your employment goals. There also may be incentive based pay that is offered in addition to the base salary. The attorney will look at the specific criteria on how to obtain this incentive based pay and how it will be distributed. It’s important that all the criteria of how to obtain the incentive pay are detailed clearly and not always subject to change at the employer’s discretion. The attorney will analyze benefits such as medical care, stipends for continuing medical education (CME), retirement, vacation, and malpractice insurance.

Terms and Termination

The length of your employment and the terms by which you fulfill your duties are one of the most important parts of your contact. There may be an employment commitment within the contract for a certain length of time. A longer term may apply if you are being provided with specialized training or education. If your employer guarantees an employment of two years, then you will be held to that commitment as well. Termination may be “at will,” but it’s a good idea to negotiate the ability to receive 30-90 days written notice to give you time to search for other employment. You can also request a “grace period” that will give you time to correct any mistakes made that may reverse the termination.

Scheduling and Patient Communication

Your work schedule and the expectations of patient communication are extremely important. This is especially true in the digital age where it can be expected that you be in touch any hour of the day. The contract needs to contain a clear expectation of when you are expected to work, be on call, and be in contact with patients. If you are always expected to be receptive to patient communication, then this needs to be negotiated in your compensation.

Restrictive Covenants

A restrictive covenant is a restriction on where or how you can work in a particular area post-employment. The impacts of restrictive covenants are very state dependent. Some states do not recognize the validity of restrictive covenants. States that do enforce restrictive covenants and non-compete clauses have strict requirements that govern its enforcement. A restrictive covenant must be reasonable in scope and not unduly burden physicians and patients. When an attorney looks at a restrictive covenant, he or she will discuss with you your future career goals, and the attorney will give a professional opinion about the reasonableness of the clause. A contract should not be automatically rejected for containing a restrictive covenant (as many physician contracts do contain them) but should be analyzed thoroughly for impact on future opportunities and employment goals.

An attorney has an ethical obligation to give you advice on what is in your best interest. If you feel that the contract warrants a second look, seek out a different attorney’s opinion. Hiring an attorney is all about gaining a prospective and understanding the consequences of a written contract. When you make a decision about your employment, you want it to be an informed one. Never sign an employment contract in haste without a thorough analysis of its terms. Happy job hunting!

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About Rachel Ragosa

Rachel Ragosa is an attorney and freelance writer based in San Diego, CA. With experience in family, civil, and business matters, she provides a unique prospective on a variety of topics that impact the healthcare community.

2 Responses

  1. rfp@thirdevo.com' Robert F. Priddy says:

    I would also recommend two things: 1) a physician who has ample experience reviewing physician contracts as well as on familiar with employment law. I’ve seen physicians that clearly violate the ADA, but some “healthcare” attorneys overlook these glitches.

  2. info@hospitalrecruiting.com' HospitalRecruiting says:

    Thanks for commenting Robert!

    We think it’s a great idea to make sure you’ve selected an attorney with physician/healthcare specific experience.

    We’ve been around physician recruiting for a long time now and we’ve also seen multiple instances where an employment law attorney, who obviously wasn’t familiar with physician contracts, gave bad advice on restrictive covenants/non-compete clauses, or income guarantees and caused physicians to walk away from otherwise great job opportunities. Once the physicians realized all employers within their desired location where offering similar contracts they were very disappointed to have turned down the best available job on bad advice.

    Sometimes finding an attorney with physician specific experience can be difficult, and in those cases we would suggest finding a more experienced colleague to assist with reviewing the contract.

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