Knowing your doctor’s employment contract

You have done it! The time has finally come and you’ve finished your residency or are preparing to accept a new position, and your prospective employer slides a thick bundle of papers across your desk in your direction. The doctor’s employment contract can be an ominous-looking pile of paperwork filled with legal language. It may be tempting to jump across the table and sign on the dotted line, but the doctor’s employment contract is worth a closer look. Once the conditions of your employment have been met, the contract details your compensation, scope of practice, and schedule terms.

The employer will submit the compensation decided on in the doctor’s employment contract. It is usually an annual salary, a variable amount based on workload, or a combination of both forms of compensation. This section of the contract should also include terms related to bonuses, annual increases (if it is a long-term contract), signing bonuses, and relocation compensation. When accepting compensation in advance, be sure to consider the payment terms. In addition, the compensation section of the doctor’s employment contract should include the terms of benefits, such as health insurance, life insurance, stock options, and retirement savings. The physician’s employment contract must include the scope of practice and restrictive covenants. While it will always vary by employer or position, the scope of practice portion of the doctor’s employment contract will set the stage for what your day-to-day job responsibilities will be. It will also remind you of any practices that are not permitted within your scope. In addition, the restrictive agreements will detail the ‘rules of the job’ and the terms for termination. You can sign a non-compete agreement as part of the restrictive covenants, or agree not to take patients away from other doctors within the practice. Ultimately, the scope of practice and restrictive covenants section of the physician’s employment contract will set the guidelines for safely navigating your new job.

Scheduling is often one of the biggest concerns among doctors. Physicians have traditionally devoted all their time to being available when their patients need them. These days, doctors band together to share the workload and save valuable free time. When detailing the terms of your schedule, be sure to note required office hours, hospital hours, and your position in the on-call rotation. Often, any required continuing medical education (CME) will also be included in this section of the doctor’s employment contract. To stay current, doctors will take classes or attend seminars, which are counted as CMEs.

Whether you’ve reviewed an employment contract in the past or are preparing to sign one for the first time, remember the importance of due diligence. This contract will legally bind you and your employer in a mutual commitment. If you are unsure of the terms, be sure to ask questions or consider seeking the services of an attorney or paralegal to interpret legal speech. When careful attention is paid to deciphering the doctor’s employment contract, it can come in very handy when you need it.