3 keys to fair hospital employment contracts

For the benefit of both hospitals and physicians, it's best to clearly spell out the terms of hospital-physician employment agreements, especially if it's the first contract between the two parties. With a third of physicians desiring hospital employment, more hospitals are looking to create fair agreements that will bring on board new doctors for successful partnership. Consider the following three terms to include in the agreements.

Restrictive covenants
Clearly state how and where the restrictive covenant applies to the physician. For instance, how expansive is the non-compete clause? Consider placing geographic parameters of where competing hospitals are and for how long the non-compete is effective.

"If the hospital terminates the physician without cause or for some reason the hospital breaches the contract, the restrictive covenants should not be enforced," said Randy Schultz, a partner and healthcare attorney with Polsinelli Shughart in Kansas City, Mo., in an American Medical News article.

Outside physician activities

Similarly, consider including parameters about what outside physician activities are permitted under the contract, such as volunteer clinical work, locum tenens assignments, and speaking engagements. Also stipulate who receives the royalties from such activities.

Termination of contract
Perhaps most importantly, include the terms of contract termination. Define what "termination with cause" and "without cause" means, as well as how much time to allow for notice of termination. Either party typically has 30 to 120 days to provide notice of termination, according to amednews.

For more information:
- read the amednews article

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