hospital-employment-contracts

Hospital Employment Contracts for Physicians: What to Expect

Navigating a hospital employment contract is a critical step in any physician’s career. Whether you’re transitioning from residency, fellowship, or exploring new opportunities, understanding the key elements of these contracts can help ensure a fair and favorable agreement. Hospital employment contracts can be complex, filled with legal jargon and clauses that can significantly impact your work-life balance, compensation, and long-term career trajectory. Here’s a guide on what documents you can expect from hospitals or medical networks, what to look for, and insights into the contracts we’ve reviewed.

Documents Typically Included in a Hospital Employment Contract Package

When negotiating a physician employment contract with a hospital or health system, you should receive information about several areas of concern. Here’ are some of the issues that should be addressed:

Employment Agreement

The primary contract that outlines your job title, responsibilities, compensation, work schedule, and other critical terms. This document is the cornerstone of your employment and will govern your relationship with the hospital.

Compensation Plan and Bonus Structure

A detailed breakdown of your salary, bonus eligibility, productivity incentives (e.g., RVU-based compensation), and any potential signing or relocation bonuses. This section should be carefully reviewed to ensure clarity and fairness.

Benefits Summary

This document covers the benefits package offered, including health insurance, retirement plans, disability insurance, malpractice insurance, CME allowances, and paid time off (PTO). Understanding these benefits is crucial, as they form a significant part of your total compensation.

Restrictive Covenants and Non-Compete Clauses

These sections detail any restrictions on where and when you can practice after leaving the hospital. Non-compete clauses can have a major impact on your future employment opportunities, so understanding the scope and enforceability of these provisions is essential.

Call Coverage and Work Schedule Details

A specific outline of your expected work hours, call duties, and weekend or holiday coverage requirements. This document helps set expectations for your work-life balance and can greatly influence job satisfaction.

Termination and Renewal Provisions

These clauses explain the circumstances under which the contract can be terminated by either party, including notice periods, cause or without cause termination, and options for contract renewal.

What to Expect in Hospital Employment Contracts

Physicians can expect their hospital employment contracts to cover critical aspects such as base salary, work hours, productivity metrics, and termination clauses. Beyond compensation, these contracts often include stipulations around malpractice coverage, restrictive covenants, and obligations related to patient care.

It’s essential for physicians to carefully review and understand these terms to avoid any unexpected commitments or limitations.

While many hospitals have standard agreements, most are willing to make adjustments in areas such as compensation, call schedule, and benefits.

Navigating Your Hospital Employment Contract

Understanding your hospital employment contract is essential to ensuring a successful and fulfilling career. By knowing what to expect and seeking professional advice when needed, you can negotiate terms that align with your professional goals and personal needs. Our extensive experience reviewing contracts from top healthcare systems can help you avoid common pitfalls and secure the best possible agreement.

Contracts From Major Hospital Systems & Networks

Below is a snapshot of well-known systems that reflect the diversity of contracts across the U.S.

The systems below span from community hospitals, academic centers, integrated delivery networks, and more.

Extensive Experience Across All Practice Settings

Our team has reviewed thousands of contracts across all practice settings, including hospitals, private practices, academic institutions, military, and more. This extensive experience equips us with unique insights into the complexities of physician employment agreements, allowing us to help you navigate and negotiate the best terms for your career.

Your Contract, Clearly Explained

Don’t sign a contract before you know and understand all the elements of it.