A good physician contract does more than list salary. It shows what the doctor must do. Clear job duties help avoid confusion later. The American Medical Association (AMA) says doctors should get a detailed list of their duties before signing a contract. These include:
AMA Senior Attorney Wes Cleveland says knowing all responsibilities first helps doctors set limits and work better with employers. Medical managers and IT staff also do better when contracts clearly define doctor roles. This helps with staffing and workflow.
Doctor pay is not always a fixed salary. There are two common pay types:
Doctors need to understand how pay is set. What parts are fixed? Which depend on work? How are bonuses decided? Without clear pay rules, problems or unhappiness can happen. Bonuses might depend on meeting care goals or patient satisfaction.
Medical managers and owners should make sure contracts have clear, measurable goals for pay. Using examples and numbers helps make these clear. This makes it easier to plan money expenses.
Total pay includes more than salary and bonuses. Contracts often cover benefits like:
AMA says these benefits can affect how happy and secure a doctor feels in their job. Contracts may require doctors to stay a certain time to keep some benefits.
Contracts should include all job terms in writing. Oral deals or informal letters may not hold in disputes. A well-written contract explains duties, pay, benefits, and rules clearly. This helps avoid confusion or legal fights.
Doctors should get a written contract early and not just trust verbal promises. Most offer letters mean a deal will be worked out but are not final. Doctors can ask for changes before signing.
Wes Cleveland from AMA and Robert Wood, an experienced contract lawyer, advise checking contracts with lawyers who know health laws. Lawyers help because employers often have their own lawyers during talks.
The termination clause in a contract is very important. It says when and how either side can end the contract.
Clauses that allow firing with little or no notice can hurt job security. This is risky if doctors moved for the job or have strong ties to their work location.
Medical managers and owners need to balance running the practice with giving doctors stable jobs. Clear termination rules with fair notice and causes help keep good working relationships.
Non-compete clauses stop doctors from working in certain areas or fields after leaving. For example, Texas enforces these if they are fair and well-written.
Doctors should study these clauses carefully. If too broad, they can block future jobs or opening new practices.
Health managers should understand how these affect recruiting and keeping doctors. Fair and clear non-compete rules can reduce fights and unhappiness. Sometimes these rules can be changed through negotiation.
Protecting doctors from malpractice claims is common in contracts. Doctors need to know what kind of coverage they have. “Claims-made” policies need extra tail coverage after the job ends. “Occurrence-based” policies cover events even after employment ends.
Not making insurance clear can put doctors at financial risk. Contracts should say who pays for premiums, coverage limits, and if tail insurance is included.
Doctor contracts are complex. It is wise to talk to lawyers who know health law before signing.
The AMA offers tools like:
Many doctors also get help from mentors, organizations, or firms that review contracts. AMA members can get legal help at a discount.
New technology like artificial intelligence (AI) and automated systems can help manage doctor contracts and office tasks. These tools reduce work and make steps clearer.
For medical managers and IT staff, AI can help by:
Using AI in front-office tasks helps medical groups keep contracts organized, reduce mistakes, and make work fairer. This raises doctor satisfaction and improves how the practice runs.
Following best practices in managing doctor contracts—looking beyond salary—helps doctors, managers, and owners by making jobs clear and fair. Using technology like AI makes the process easier and better suited to today’s healthcare needs.
Hiring an experienced attorney is crucial because physician contracts are complex, and employers often have legal counsel on their side. An attorney ensures that physicians understand their rights and negotiate favorable terms.
Physicians should seek legal guidance immediately when considering a new position. Early involvement of a contract lawyer can significantly improve the negotiating position and outcome.
Understanding personal goals and the market helps physicians assess their value and negotiate terms that align with their career aspirations and available options.
In addition to salary, physicians should review terms related to work hours, responsibilities, patient load, and support staff availability, ensuring a comprehensive understanding of their role.
Written agreements are easier to enforce than verbal promises. Having a carefully structured written contract protects physicians’ interests and reduces the risk of misunderstandings.
An offer letter is not a final agreement; it indicates a willingness to negotiate terms. Physicians retain the right to negotiate even after receiving an offer letter.
Physicians must examine termination clauses closely, as an agreement allowing termination with little notice can jeopardize job security and stability, especially during relocation.
Non-compete clauses can limit future employment options if not structured properly. Physicians should carefully consider these clauses to avoid overly restrictive agreements that could harm their careers.
Adequate malpractice insurance is essential for financial protection. Physicians should negotiate terms that specify the extent of coverage and ensure they are adequately protected against potential claims.
Understanding bonus terms is vital for financial planning. Physicians can negotiate these terms to seek better compensation opportunities that align with their performance and contributions.
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