Understanding Doctor Contracts
Whether you are a new doctor just stepping into your first role or an experienced physician ready to explore new opportunities, doctor contracts/physician employment agreements are an important step in helping protect your future.
Here are some things to take into consideration when negotiating and understanding your contract.
Compensation and Benefits
One of the most important parts of a physician contract is how you are going to be compensated, which includes salary, bonuses, and benefits (health insurance, retirement plans, and malpractice coverage).
Workload and Schedule Expectations
A physician contract will typically outline: expected working hours, on-call duties, and patient load. You will want to make sure you understand the on-call requirements and what the compensation is. You will also want to make sure you know if overtime and weekends are expected and what that would look like. Make sure that the terms that are written align with your expectations for a work/life balance.
Non-Compete Clauses
Some physician contracts outline non-compete clauses, you will want to make sure that is makes reasonable sense, and it’s following the regulations of the state as each state has different regulations on the enforceability of non-compete agreements.
Termination and Severance
Things happen and one party of the other might find themselves wanting to terminate the agreement in place. Physician contracts outline the terms in which the involved parties can terminate the arrangement. They might even offer a severance package if you are terminated without cause.
Malpractice Insurance
As a physician, malpractice insurance is vital. Make sure you understand what the employer will provide in that area.
Partnership/Ownership Opportunities
If you are considering a long-term position, you might find that the contract outlines potential for partnership or ownership. If that is the case, you will want to make sure you understand the timeline for partnership, and financial buy-in requirements, and what financial and decision-making responsibilities come with such an opportunity.
Dispute Resolution
As with any human interaction, disputes between physicians and employers can arise. Make sure you know how the employer has outlined how those disputes should be handled, many have provisions to go through mediation or arbitration rather than court.
Congratulations on your new physician contract! If you would like help reviewing the contract before you sign it, let Irvine Legal help.