Doctor Employment Lawyer Blog

It sounds a bit ridiculous, but it could be true. It is not uncommon for physician employment agreements to include a clause that gives your employer the right to collect any and all income that you receive from outside activities. This includes speaking fees, expert witness fees and moonlighting activities.

You might think this sounds a bit unfair. I can assure you that your employer thinks your salary pays for all professional activities. The fact is that being a doctor is a unique profession in that your devotion to your employment can be critical to patient lives. It is not always unreasonable for a physician employer to want to ensure that your full working time and attention is devoted to your practice, hospital, and/or division. But, that doesn't mean that you should be denied the ability to earn extra income for work that you actually perform.

The key fact that all physicians should keep in mind is that your employer can only lay claim to your outside income if you sign an agreement that says they can. If you are negotiating a doctor employment contract with an employer that considers such a provision an absolute requirement, you have the choice as to whether you want to work for such an organization.

There are plenty of hospitals and practice groups out there that want you to build a name for yourself by speaking at conferences. And there are plenty of hospitals and practice groups that give you the freedom to make enough money to pay back loans and support your family through expert witness fees and/or moonlighting. It's better that you know and understand which type of employer you will be working for before you sign the employment agreement. And, if you're not sure, asking might be a good idea.

You are ready to move to a new hospital or practice group. You think you have a really great offer, but do you really? It is important to look beyond just compensation when assessing a physician employment agreement. Your current malpractice carrier may not cover you after you leave your current position. In most situations, supplemental insurance or "tail coverage" is needed to cover malpractice claims made after you leave employment.

In the past, malpractice coverage was usually "occurrence-based," which meant that as long as a you maintained coverage at the time of the alleged malpractice incident, you would be covered. However, with the rise of malpractice claims, "claims-made" policies have become more popular. Claims-made policies cover a physician for claims made during the period of time in which the insurance is maintained, and therefore must be continually maintained. However, when you change jobs, it can be extremely costly to obtain claims-made coverage with the new employer that would cover prior acts with the past employer. Thus, tail coverage would need to be purchased to protect you.

But, whose responsibility is it to foot the bill for tail coverage? Often times, this is negotiable. Occasionally, a hospital or practice group will pay for tail coverage complete. More commonly, you and your employer either share in the cost, or the employer may place certain conditions and terms under which it will pay for tail coverage. There are a number of unique and creative agreement possibilities.

It is important to assess your personal needs when agreeing to a doctor employment contract with regard to tail coverage. Properly negotiating your employment agreement will provide you with the financial certainty and flexibility necessary for you to be able to take advantage of attractive professional opportunities that may come your way.

written by Poonam Khatri

Before there is even a physician employment contract to review, doctors should investigate whether a hospital or practice group is truly going to be a good fit. Too many times we have seen physicians get into bad employment situations just because the pay was good. It does not take long for them to realize that no amount of compensation can justify staying in an uncomfortable working situation for the long term.

The following tips will help you conduct a little due diligence before accepting an offer of employment:

1. Culture. Speak with as many team members as possible. Don't just contact the physicians. Try to speak with the nurses, PTs, assistants and support staff. They will likely have a different perspective to share.

2. Reputation. Use the internet to find out what people are saying about the practice/group. Search each individual physician as well as the practice itself.

3. Volume. Ask the following questions: How many patients does the practice have? What is the breakdown of private pay versus public pay patients? How many patients does each doctor see per clinic? What were the previous year's total collections for the practice/group?

4. Vision. Ask about the practice/group's future plans. Are there plans for growth? What opportunities exist for you and what opportunities have your potential colleagues been able to conquer?

5. Attrition. How many employees have left the practice/group over the last 3 years? If a high number of people in any position have left, that might be an indication of how your potential colleagues interact with others.