We will review the elements of the physician employment agreement that
can cause the greatest problems, focusing on the pitfalls and the
complications that can develop when the parties do not fully understand
what is being agreed to.
Such items as corporate practice, term
and termination, termination for cause, duties of the physician, call,
non-compete clauses, and compensation are all items that should be
clearly set out in the agreement and fully understood by the parties.
Formal written contracts establish the legal relationship between the
parties; they state the terms and conditions of that relationship and
the rights and obligations of each party. They confirm the intentions
and relationships of the parties as they enter into this relationship,
and they eliminate uncertainties regarding mutual rights, obligations,
and relationships. If everything remained as it is at the time the
agreement is signed, there would be little need for formal documents.
However,
the agreement serves to protect against future disputes. Therefore, it
should include as precise language as possible. Ambiguous terms in
agreements are of little effect when disputes occur over the meaning of a
party's rights or obligations.
You should attend to gain an
understanding of what should and what should not be in a physician
employment agreement, as well as the pitfalls of some of the problem
areas.