Physician Employment Agreements

Physician employment agreements are distinguished by the many unique characteristics due to the specific business nature, responsibilities, and legal considerations applying within the healthcare industry. Such employment agreements contain key distinguishing factors and provisions detailed below.

1. Scope of Practice

• Physician agreements often delineate the scope of medical services that the physician is expected to provide, closely linked to their specialty and board certifications.
• Differentiator: In contrast to general employment agreements, these contracts are highly specific about the specific nature of the applicable work to which the scope applies.

2. Credentialing and Privileges

• Hospitals or medical groups typically mandate physicians to obtain or maintain specific credentials and hospital privileges in good standing.
• Differentiator: This aspect is unique to healthcare, being necessary or billing and reimbursement and pivotal for the validity of the employment.

3. Malpractice Insurance

• Details concerning malpractice insurance, whether provided by the employer or if the physician is required to procure their own policy including, without limitation, as to desirable umbrella and tail policies.
• Differentiator: Particular to medical professionals, this clause encompasses not only liability and risk management but their outside limits.

4. Compliance with Medical Laws and Regulations

• Provisions regarding adherence to healthcare laws such as HIPAA, the Stark Law, and the Anti-Kickback Statute.
• Differentiator: Reflects the highly regulated nature of the healthcare industry and the physician’s role in policing their own practice.

5. Non-Compete Clauses

• Restrictions on where and how a physician can practice medicine after leaving the employer.
• Differentiator: While prevalent in many fields, the intricacies of non-compete clauses in the healthcare industry can be notably complex due to patient care, ethical and intermingled practice considerations.

6. Compensation Structure

• Often comprising a base salary, sometimes based on various units or shifts, plus incentives based on various factors such as patient satisfaction, outcomes, or billing thresholds.
• Differentiator: More intricate and multifaceted than in many other professions.

7. On-Call Requirements

• Stipulations concerning on-call duties, which are integral to many medical positions.
• Differentiator: Unique to healthcare and pivotal in defining a physician's workload and work-life balance.

8. Continuing Medical Education (CME) Requirements and Support

• Provisions for mandatory and nonmandatory ongoing education, encompassing time off and financial support for CME.
• Differentiator: Emphasizes the significance of continuous learning in the medical field.

Takeaway:

Physician employment agreements encompass several unique elements reflecting specific responsibilities, regulatory environment, and ethical considerations applying within the medical profession. Legal professionals specializing in healthcare law must adeptly navigate these nuances to represent and advise their clients effectively.

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