Before You Sign a Physician Contract, Know What You’re Agreeing To
A physician employment contract can affect your compensation, professional responsibilities, future career options, and what happens when the employment relationship ends. Important terms are not always obvious from the job offer or a quick read of the agreement.
Jackson LLP reviews physician employment contracts to identify provisions that may create financial, professional, or legal concerns. We explain the terms in practical language and identify provisions that may warrant clarification or negotiation before you sign.
Physician contract reviews are typically offered for a flat fee, so you know the cost before the review begins.
Why Have a Physician Contract Reviewed?
Your employment contract creates legal obligations beyond the terms of your job offer, and those obligations may affect you throughout your employment and after you leave.
A contract review can clarify:
- How your compensation is calculated
- What productivity requirements apply
- How bonuses and other incentives work
- Whether a non-compete or non-solicitation provision could limit your future work
- Who is responsible for malpractice insurance and tail coverage
- How much notice you must provide if you leave
- What happens if the employer terminates your employment
- Whether you have a path to partnership or ownership
- What benefits and other compensation you will receive
- What obligations continue after the contract ends
Reviewing these contract terms before you sign can clarify the agreement and identify issues you may want to address before committing to the position.
What We Review in a Physician Contract
Every healthcare employment agreement is different. Depending on the agreement and your circumstances, our review may address the following:
Compensation, Productivity, and Bonuses
We review how your compensation is calculated and whether the language matches what you were told about the position. This may include base salary, productivity formulas, RVU-based compensation, collections, performance incentives, signing bonuses, relocation payments, and other compensation.
We also look for provisions that could affect when or how you receive compensation, including productivity requirements, adjustments, repayment obligations, and compensation clawbacks.
Restrictive Covenants and Non-Solicitation
Physician contracts may restrict what you can do during employment and after you leave. We review non-compete, non-solicitation, confidentiality, outside-employment, and other restrictive provisions.
The enforceability of restrictive covenants varies by state and circumstances. Jackson LLP works with physicians in Illinois, California, New York, Texas, and Wisconsin, and we consider the applicable state requirements when reviewing these provisions.
Termination and Contract Term
The contract should be clear about how long the agreement lasts and what happens if either party wants to end the relationship sooner.
We review the initial contract term, renewal provisions, termination for cause, termination without cause, notice requirements, and obligations that survive termination. We also look at whether the agreement creates financial consequences if you leave before a specified date.
Malpractice Insurance and Tail Coverage
Malpractice insurance can become a significant expense when a physician changes jobs. We review provisions addressing the type of coverage provided, responsibility for premiums, and whether you may be responsible for tail coverage after employment ends.
Call Obligations and Professional Responsibilities
Your contract may establish requirements that go beyond your compensation and basic job description. We review provisions addressing call responsibilities, scheduling, clinical duties, administrative obligations, credentialing, licensure, and other professional requirements.
If the agreement gives the employer broad discretion to change your responsibilities or schedule, we can identify that language for further consideration.
Partnership and Ownership Opportunities
Some physician positions include the possibility of partnership or practice ownership. If an agreement promises or references a future ownership opportunity, we review the language to determine what the contract provides.
Depending on the agreement, this may include eligibility requirements, timelines, buy-in provisions, valuation, voting rights, compensation, and what happens if you do not become an owner.
A reference to a future partnership opportunity does not necessarily guarantee a path to ownership, so the exact contract language matters.
Benefits and Other Compensation
We review benefits included or excluded from the agreement, including health insurance, retirement contributions, paid time off, CME allowances, licensing expenses, and professional memberships.
Intellectual Property and Confidentiality
Physician contracts may contain provisions addressing intellectual property, confidential information, patient information, research, publications, educational materials, or other work created during employment. We review these provisions to identify what rights you may be giving the employer and what obligations continue after you leave.
What Can Be Negotiated?
Not every provision in a physician contract is negotiable. Some employers use standardized agreements, and certain terms may be required by their policies or business structure. Even so, you should review the contract before signing.
A contract review can identify provisions worth discussing with the employer, such as compensation, productivity requirements, restrictive covenants, termination notice, call obligations, malpractice coverage, bonuses, or ownership opportunities. Even when an employer is unwilling to change a provision, understanding what you are agreeing to allows you to make an informed decision about the opportunity.
How Our Physician Contract Review Works
We keep the contract review process straightforward. Here’s what to expect when you speak with one of our healthcare attorneys:
1. Initial Consultation
We start with a complimentary 15-minute consultation to learn about the position, the agreement, your timeline, and any specific concerns you have.
2. Attorney Review
Our attorneys review the agreement and identify provisions that may affect your compensation, professional obligations, future employment options, liability, and other important aspects of the relationship.
3. Feedback from Our Review
We explain the key provisions we identified, potential concerns, and areas that may warrant further attention.
4. Negotiation Guidance
If you choose to negotiate with the employer or contracting entity, we can advise you on which provisions may be negotiable and how to approach those discussions effectively. We can also answer questions about the agreement and its implications as you decide how to proceed.
Physician Contract Review in Illinois, California, New York, Texas, and Wisconsin
State law affects physician employment contracts, especially when they include restrictive covenants, compensation arrangements, termination provisions, or other state-specific requirements.
Jackson LLP works with physicians throughout Illinois, California, New York, Texas, and Wisconsin. Our healthcare attorneys review physician contracts with applicable state requirements in mind and consider practical issues that can affect your career and compensation.
Why Choose Jackson LLP for Your Physician Contract Review?
Jackson LLP focuses exclusively on healthcare law, including healthcare employment law, and works with physicians and independent healthcare practices. We understand the issues that commonly arise in physician employment agreements and can explain how the terms of your contract may affect you during and after your employment.
Our physician contract reviews are typically offered for a flat fee.
Schedule a complimentary 15-minute consultation with Jackson LLP to discuss your agreement, your timeline, and the contract-review process.
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Frequently Asked Questions About Physician Contract Reviews
Is attorney review of a physician contract worth it?
Yes. A physician employment contract can affect your compensation, professional responsibilities, malpractice obligations, future employment options, and rights after termination. Reviewing the agreement before signing lets you understand the terms and address any questions before you become legally bound by them.
Can I negotiate a physician employment agreement?
Some provisions may be negotiable, while others may be standardized or required by the employer. If you choose to negotiate, Jackson LLP can advise you on which provisions may be worth addressing and how to approach those discussions.
How long does a physician contract review take?
The timing depends on the length and complexity of the agreement and your circumstances. If you have a signing deadline, let us know during your consultation so we can discuss the review timeline.
How much does a physician contract review cost?
Physician contract reviews are typically offered for a flat fee. The specific fee depends on the agreement and scope of the review, and we can discuss the cost during your consultation.
Does Jackson LLP review physician contracts in my state?
Jackson LLP works with physicians in Illinois, California, New York, Texas, and Wisconsin. State-specific requirements can affect provisions such as restrictive covenants and other employment terms, so the review considers applicable state law.
Related Resources
Hospitals may call contracts non-negotiable, but physicians should understand which terms may still warrant discussion.
Leaving a practice can trigger contractual obligations involving notice, restrictive covenants, compensation, and patient relationships.
Employment contracts can affect notice requirements, patient transitions, restrictive covenants, and other obligations when an employee leaves a healthcare practice.