Legal Tip On Doctor Contracts

While it may feel uncomfortable, or like you’re betting on a losing horse, to be thinking about termination when starting a new position, a termination clause in a physician contract is a vital component that protects both the physician and the employer. These clauses help outline the steps that need to be taken in case something doesn’t go according to plan and either party needs to end the contract. 

Termination clauses typically specify how much notice each party needs to provide in order to terminate the agreement. The typical notice period ranges from 30-90 days. This helps provide a smooth transition for patient care, and it is not uncommon for these contracts to require the departing physician to help facilitate in a transition plan for their patients. 

These clauses should also address any financial or logistical penalties associated with an early termination. For example, if proper notice isn’t given, payment must be given or there is a forfeit of certain benefits. 

Another thing you should note in your contract is if there is a non-compete or restrictive covenant in place that would restrict you from practicing in specific locations or specialities, and if so, how long does that last. If you are in a state where it is enforceable, you could find yourself limited in your future career plans. 

Often the termination clause will address tail insurance coverage, which is liability coverage for claims that may arise after employment ends. You want to make sure who will cover this cost upon termination, as the lack of coverage can put you, as the physician, at risk. 

You hope that everything will go smoothly, and that there will be no need to dispute the termination, however, things don’t always go as smoothly as we would like and you may find yourself having to deal with termination disputes. Sometimes, a physician contract will also specify how those disputes should be handled, such as mediation or arbitration.

Starting a new job can be exhilarating and the future looks bright. When you are in the honeymoon phase of job hunting, it can be difficult to imagine ever needing the termination clause. However, if you find that, in time, the rose colored glasses have come off, you will be grateful to have taken the termination clauses into consideration before signing. 

Whether this is your first or last physician contract, let Irvine Legal review your physician contract. With several options to choose from, there is something for everyone. Give us a call today at 385-333-7966 to schedule an appointment.