Whether fresh out of training or a veteran practitioner, those who are looking to take on a position with a medical practice or hospital are wise to understand how employment contracts work. There are nuances for each profession, and medicine is no different. The following will discuss provisions common for physician agreements, what to watch out for, and how to mitigate the risk of any surprises after you agree to an employment arrangement.
Key provisions of physician employment agreements
Physician employment agreements are comprehensive documents that outline the terms and conditions of employment. Key provisions to review include:
- Compensation and benefits: This section details the salary, bonuses, and benefits such as health insurance, retirement plans, and paid time off. Physicians are generally compensated through either fixed or variable compensation options. New physicians are often offered fixed while veterans may receive variable compensation. Additional benefits to look for can include coverage for CMEs and liability insurance.
- Duties and responsibilities: Clearly defined roles and responsibilities help prevent misunderstandings and better ensure that both parties have aligned expectations. Review carefully and negotiate different terms if those outlined in this provision are not what you are looking for in your future practice.
- Non-compete: These clauses can significantly impact a physician’s career mobility. In Kentucky, the enforceability of non-compete agreements is subject to specific legal standards including reasonableness in scope, duration, and geographic area. It is important to note that this area of law is evolving. Carefully review the provision included in the offer and keep up to date with changes as they could impact your employment options in the future.
- Termination: This section outlines the conditions under which either party can terminate the agreement, including notice periods and severance packages.
Understanding these components helps physicians negotiate terms that align with their career goals and personal needs. With proactive negotiations and guidance, you can reduce the risk of any surprises after you agree to an employment arrangement.
