Before You Sign a Physician Employment Agreement

Physician employment agreements can be lengthy, but not every provision deserves equal attention. The most important terms are often the ones that affect how you will be paid, how you will practice, and how easily you can leave if the position is not what you expected.

1. Understand how your compensation actually works.

Base salary is only one part of the compensation structure. Productivity formulas, collections, quality incentives, bonuses, call compensation, and other components can significantly affect what you ultimately earn. Pay particular attention to how productivity is calculated, when bonuses are determined and paid, and whether you must still be employed on the payment date.

2. Look beyond the stated work schedule.

An agreement may identify an FTE level or general schedule without fully describing the physician's actual obligations. Consider call coverage, weekends, administrative responsibilities, additional locations, supervision requirements, and expectations outside ordinary clinic hours. The contract should be evaluated against how the position is expected to function in practice.

3. Know what happens if the employment relationship ends.

Termination provisions deserve careful attention before employment begins. Review the notice required for termination without cause, the circumstances permitting immediate termination, and whether either party has an opportunity to cure an alleged breach. Also determine what compensation remains payable after termination, including earned bonuses or other amounts that may not yet have been calculated.

4. Evaluate the restrictions that follow you out the door.

Non-compete and non-solicitation provisions can affect where and how you practice after leaving. Consider the duration, geographic scope, activities restricted, and whether the restriction applies regardless of why the employment relationship ends. Confidentiality, patient solicitation, employee solicitation, and notice obligations may also continue after employment.

5. Pay attention to repayment and malpractice obligations.

Signing bonuses, relocation payments, student-loan assistance, and other incentives may be subject to repayment if employment ends within a specified period. The agreement should also clearly address professional liability coverage and, when applicable, who is responsible for the cost of tail coverage after departure. These obligations can materially affect the financial consequences of leaving a position.