Before signing any contract, it is essential to understand all aspects of the contract. For example, a contract must clearly state a physician’s salary, incentive pay, income guarantees, on-call pay, and other benefits. Some physician surveys show that contracts should also clearly define verbal promises made during the interview, such as relocation expenses or a signing bonus. A lawyer can help you document these verbal promises and make them legally binding.
Non-Competes
A physician contract review is a vital step for any physician unhappy with their contract. Poor contracts can result in high costs, burdensome non-compete agreements, and unfair treatment. Spending a few hundred dollars on a contract review can help ensure you get what you want and avoid unnecessary problems. This comprehensive guide lists some of the best law firms for this task and includes information on how to find them.
The first step is to consult with a lawyer. While physician employment contracts are complicated, they should reflect the individuality of each individual. Therefore, it is imperative to work with an attorney to ensure you get the best possible deal.
Liquid Damages
Liquid damages in physician contracts can be tricky. While they may deter breachers, they are often difficult to enforce. Recent cases have involved payouts of up to $50,000, or half a physician’s last year’s income and productivity. But the actual value of this provision is in its deterrent effect.
Liquid damages are not penalties; they are meant to protect the parties. Moreover, such a clause should be consistent with contract law. A liquidated damages provision can be used to prevent unfair competition between physicians. In some instances, liquidated damages are also included in employment agreements.
Liquid damages in physician contracts are usually referred to as restrictive covenants. A breaching physician will have to pay the other party the amount of revenue generated during the prior year, the compensation paid to the physician, and the lost profits. If a physician breaches this covenant, the employer may claim restitution from the former employee.
Hours of Work
Work hours are critical to negotiating when drafting an employment contract. Many physicians think they will work a certain number of hours a week, but they often work far more. This is especially true of healthcare professionals, who often work long hours and are on call. The best way to avoid this is to specify how many hours a week the physician will be expected to work.
Physician contracts can be complex, legally binding documents with complex contract language. Getting a lawyer to review them is the best way to ensure you get the best possible deal. The lawyer will look at all aspects of the agreement, including the hours, base salary, benefits, and performance-based bonuses. They will also review the non-compete and termination clauses.
Compensation
Physician contracts require special knowledge and consideration. Physician contract reviews can help you ensure that you have a clear understanding of what you are getting into. A physician contract review aims to ensure that you are obtaining the best possible compensation and other benefits while minimizing risk. Physician contract reviews are essential to any physician’s employment relationship, and you should consider hiring a legal professional to review your contract.
Obtaining a legal review of physician contracts can help ensure that your contract reflects the market value of your practice. Because physician compensation structures are increasingly complex, a comprehensive legal review can help protect your interests. Some compensation methodologies can include as many as half a dozen components beyond base salary, including incentive bonuses, “clawbacks” (monies returned to employers for underperformance or other reasons), shared savings, and other factors.
