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As an employer, what should I keep in mind during negotiation of a physician contract?

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Video Transcript

Lee:

Here are some tips for medical practices and hospitals considering employment contracts:

First, be consistent.  While it’s not necessary that your physician employment agreements be uniform in every detail, it is helpful administratively and legally if your contracts are generally consistent.

Also, don’t be too greedy with restrictive covenants.  Determine with your attorney’s assistance what prohibitions and restrictions you truly need to protect your legitimate business interests and make sure that that squares with the law.  Attempting to over protect your practice will weaken your ability to enforce the contract.

Finally, plan the exit strategy for you and the physician and ensure that the contract is clear and fair in this regard.  Every relationship will feel good when it starts, but of course most employment relationships do end and it’s important to plan for that.