Scribd
Upload
57 views2 pages

Understanding The Basic Elements of An Employment Contract Can Help Physicians Evaluate Job Offers

The document discusses the key elements that should be addressed in an employment contract for physicians. These include: 1) Employment status and scope of work to define if the physician is an employee, independent contractor, or shareholder. 2) Restrictive covenants like non-compete clauses to prevent physicians from working for competitors in a certain area for a set time period. 3) Compensation structure as a guaranteed salary, production-based pay, or a combination. Details of pay increases over multiple years should be specified. 4) Work hours, schedule, call duties and policies around continuing education and time off. 5) Termination provisions whether "with cause" or "without cause" and appropriate notice

Uploaded by

Niker Mata
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
57 views2 pages

Understanding The Basic Elements of An Employment Contract Can Help Physicians Evaluate Job Offers

The document discusses the key elements that should be addressed in an employment contract for physicians. These include: 1) Employment status and scope of work to define if the physician is an employee, independent contractor, or shareholder. 2) Restrictive covenants like non-compete clauses to prevent physicians from working for competitors in a certain area for a set time period. 3) Compensation structure as a guaranteed salary, production-based pay, or a combination. Details of pay increases over multiple years should be specified. 4) Work hours, schedule, call duties and policies around continuing education and time off. 5) Termination provisions whether "with cause" or "without cause" and appropriate notice

Uploaded by

Niker Mata
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 2

Understanding the basic elements of an employment contract can help physicians evaluate job offers.

Somewhere between residency and your first practice position lurks the employment contract. A basic understanding of the main elements of employment contracts will help you wade through what is often a multipage document replete with legalese. The employment contract will or should address the following:

Employment status and scope of work. These sections define a physicians status as independent contractor, employee, or shareholder. Although employers sometimes hesitate to include specifics about the scope of work because workload and patient volume arent always predictable, the contract should stipulate basic expectations and, in the case of specialists, should include estimates regarding numbers of procedures or patients. Important consideration: Employment status can affect both your tax burden and potential liability in the event of a malpractice suit, so make sure you understand the difference between contractor and employee or shareholder status.

Restrictive covenants. These non-compete clauses agreements typically prevent a physician from working for a competitor located within a specific geographic area for a certain period of time; these covenants thus thwart a departing physician from stealing patients. The contract might state, for example, that the physician cannot practice medicine within a 10-mile radius for a period of two years. Despite widespread physician opposition, these clauses continue to appear in many contracts.

Compensation. Generally, a physicians compensation is structured in one of three

ways: as a guaranteed annual sum or salary as a variable amount based on production (usually calculated from billings or collections) as some combination there of If a production formula is used, the contract should provide specific details on how compensation is calculated, when you will be paid, and in what increments. Multiyear contracts should spell out the specifics of annual pay increases. Important considerations: The contract should clearly delineate terms regarding any money you might be obligated to repay under certain conditions such as signing bonuses, loans, salary advances, or recruiting fees. Also, the contract should address total compensation, including malpractice premium payments; coverage for malpractice claims arising after you leave the practice; health, life, and disability benefits; and vacation policies.

Work hours, schedule, and call duty. The contract should stipulate the maximum number of work hours each week or month and should define call-duty expectations. It also

should address whether Continuing Medical Education (CME) can be acquired during work hours or must be completed on the physicians own time.

Termination. There are two basic types of termination provisions: with cause (with good reason) provision allows the employer to terminate the physician for reasons such as loss of hospital or prescribing privileges or inability to meet patient-care obligations. without cause provision enables the employer to terminate the contract with no stated reason by providing written notice in advance typically from 30 to 180 days. Fair contracts allow the physician to do the same. Important considerations: In without cause terminations, the notice period should be long enough to allow the physician to secure other employment. If the physician is permitted to initiate a without-cause termination, he or she should make sure the termination clause does not conflict with the non-compete clause.

You might also like