Leaving a Medical Practice: What to Review Before Giving Notice

Deciding to leave a medical practice involves more than choosing a last day. Employment agreements often contain provisions that affect when and how a physician may depart, what compensation remains payable, and what obligations continue afterward. Understanding those provisions before giving notice can make the transition considerably easier to manage.

Start with the termination provisions.

Determine how much notice the agreement requires and exactly how that notice must be delivered. A contract may require written notice within a particular period or specify where and to whom it must be sent. Also review whether the employer has rights during the notice period, such as removing the physician from the schedule, changing duties, or accelerating the departure date.

Determine what compensation is still owed.

A departure can affect compensation that has been earned but not yet paid. Review how the agreement treats productivity compensation, collections, bonuses, incentive payments, unused leave, and other amounts following termination. Some agreements condition payment on continued employment through a particular date, while others provide for a post-termination reconciliation.

Understand the obligations that continue after employment.

Restrictive covenants do not disappear simply because employment ends. Before accepting another position or announcing a move, review any non-compete, patient and employee non-solicitation, confidentiality, and notice provisions. The agreement may also address patient communications, return of property, medical records, or the use of practice information following departure.

Identify the financial consequences of leaving.

Signing bonuses, relocation assistance, student-loan payments, retention incentives, or other benefits may carry repayment obligations if employment ends before a specified date. Physicians should also determine whether professional liability insurance requires tail coverage and, if so, who is responsible for the cost. These amounts can materially affect the economics of a transition.

Plan the transition before giving notice.

The timing of a resignation can affect more than the current employment relationship. A physician may need to coordinate a new start date, credentialing, licensing, malpractice coverage, and compliance with continuing contractual restrictions. Reviewing those issues before notice is given allows the transition to be planned around existing obligations rather than addressed after problems arise.