Navigating employment agreements for physicians and healthcare professionals can be complex. The legal nuances of these agreements require careful consideration. Having an attorney who is experienced in healthcare law review a healthcare employment agreement can ensure that physicians and healthcare professionals enter into fair and protective contracts that serve their best interests.
What is included in a typical employment agreement for a physician or healthcare professional?
Healthcare employment agreements for physicians and healthcare professionals are comprehensive documents that may cover various aspects of the employee/employer relationship. An attorney can help by reviewing the following essential terms that are typically included in these agreements:
- Compensation and benefits – While also helping to address issues such as base salary and productivity bonuses, an attorney may also help negotiate sign-on bonuses, how those bonuses will be taxed, CME reimbursement, or when they will be paid. An attorney may also scrutinize clauses related to compensation adjustments, ensuring that performance metrics and/or external factors triggering changes in compensation are clearly defined and reasonable. They may also negotiate for additional benefits that align with the individual employee’s needs and priorities.
- Duties and responsibilities – What practice locations are you required to provide services at? What does emergency room coverage look like? Are there carve-outs for surgeries? Will the physician have to practice at multiple locations within a health network? Are there on-call requirements or the obligation to work on holidays? An attorney can help identify these questions, provide clarification, and negotiate any terms that are important to the individual employee.
- Noncompete agreements – For decades, healthcare noncompete clauses have been viewed as a way for practices, hospitals and health networks to ensure the continuity of their workforce. Recently, the inclusion of noncompete clauses within the employment agreements of physicians and health care professionals has been the subject of regulation and legislation at the federal and state levels. Having an attorney review and analyze these provisions to ensure that the provision is legal and/or enforceable is essential considering the recent changes in the law. When included, many aspects of these covenants such as their duration and scope can be negotiated, and the language must be carefully tailored to protect the interests of all parties. For example, should the noncompetition provision be effective if the physician is terminated without cause.
- “Partnership” – in private practices, negotiating clear provisions for partnership consideration (or other equity in the practice) can be critical.
- Professional liability insurance – Most physicians and some health care professionals are all too familiar with the costs of insurance. For physicians, having an attorney negotiate tail coverage in an employment agreement may be essential. Reviewing insurance provisions can help to ensure that insurance coverage limits are sufficient and that the employee’s interests are adequately protected in case of litigation, voluntary departure, or termination of employment.
- Termination – Reviewing termination scenarios and their impact on insurance (tail coverage), licensing, new opportunities, medical staff privileges, severance and more is an important aspect of attorney review.
Each of these components carry significant implications for physicians and health care professionals that could impact their career trajectory, financial well-being and professional autonomy. While some physicians and health care professionals may be tempted to sign agreements presented to them without scrutiny, this approach can leave them vulnerable to unfavorable terms or ambiguities that may arise in the future.
Beyond a healthcare employment agreement
While physician and health care professional employment agreements will address and protect much of what can or will happen during employment, an employment agreement is ultimately a contract that governs the employee’s relationship with the practice, hospital, healthcare provider or other health system.
Outside of helping to review and negotiate these agreements, attorneys with experience in healthcare law can also apply their deep understanding of industry standards, legal requirements, and common pitfalls to support physicians and healthcare professionals with:
- Compliance with federal laws such as the Anti-Kickback Statute (AKS) which governs relationships with pharmaceutical companies, medical supply and device manufacturers, and other healthcare services; and Stark Law, which addresses referral relationships.
- Licensing and credentialing, representing physicians in disputes regarding board certifications and certification eligibility, as well as re-credentialing and reinstatement of physicians from whom participation in an insurance network had been revoked.
- Assistance in navigating the corrective action, fair hearing, and appellate review processes to ensure compliance with bylaws, regulatory and statutory requirements.
Legal support for healthcare employment agreements
Employment agreements for physicians and health care professionals are complex legal documents that have far-reaching implications for the careers and well-being of the individuals who enter these agreements. Attorneys with experience in healthcare law play a crucial role in ensuring that these agreements are fair, transparent, and protective of the interests of physicians and health care professionals.
Our healthcare attorneys in Allentown, PA carefully review and negotiate the terms of employment contracts, working to secure favorable terms for physicians and health care professional clients, while contributing to the stability, satisfaction, and success of physicians and health care providers in their professional endeavors.
