If you are a physician who has just received a job offer, you may be wondering whether the several-page employment contract you have just received is fair. There are many considerations in reviewing a physician employment contract which can impact your day-to-day and your legal rights significantly.
Most physician contracts have a notice period of 90 days for both parties (employee and employer). This means that you cannot quit without giving 90 days of notice, and your employer must also give you the same notice if they wish to terminate the relationship. There are usually exceptions to this rule laid out in the contract that allows the employer to terminate you with less or no notice if your termination is “for cause,” but generally speaking, a notice period gives you some job security. Occasionally, physician contracts are “at-will,” meaning you can be terminated without any notice and for any (legal) reason. It’s important to know what type of contract you have, and consider the advantages and disadvantages of both.
Many physician contracts throughout the United States include non-competes, which allow the employer some control over who the employee can work for after their employment ends. However, certain states prohibit non-competes for physicians. In both Massachusetts and Rhode Island, non-competes are unenforceable against physicians.
Many employers offer extra benefits to physicians, which can include time off for Continuing Medical Education (CME), covering expenses related to CME, professional licensing, and subscriptions to medical publications, and other job-related expenses. Additionally, most physician employers provide medical malpractice insurance to their employees. All of these benefits should be clearly stated in the contract, and employees should have a clear understanding of the type of malpractice insurance provided. Ideally, the contract should state the type of insurance with the limits specified, and should state whether tail insurance will be provided. It is important to note whether the employer is providing tail insurance in all situations, or if it is limited to certain situations. An employer may not agree to pay for tail insurance if you are fired for cause, or if you leave the job within a year of hire.
There are many more considerations in reviewing physician contracts that an experienced attorney can review with you. These are just a few examples. Greene & Hafer has extensive experience with these contracts. Please reach out to us to schedule a consultation.
