Hospital Employment Contract - Physician Contract Glossary

Hospital Employment Contract

Definition

An employment agreement directly between a hospital system and a physician, detailing duties, compensation, benefits, and termination terms.

Examples in Context

“Physician shall receive a guaranteed salary of $250,000 annually, with additional compensation based on achieving 5,000 wRVUs per year.”

“The hospital shall provide professional liability insurance coverage for Physician throughout the term of this Agreement and any applicable tail insurance upon termination.”

Implications for Physicians

• Salary often linked to productivity (e.g., wRVUs).
• May include additional hospital-specific duties, such as committee service or teaching obligations.
• May restrict outside employment or moonlighting opportunities.

Negotiation Tips

• Ask how overhead costs and billing practices are managed to avoid unexpected financial burdens.
• Clarify if the hospital covers malpractice tail insurance upon contract termination.
• Request defined timelines for performance reviews and salary adjustments.

Red Flags and Pitfalls

• Restrictive call schedules with limited flexibility or no pay incentives.
• Non-compete clauses that extend across large geographic areas, limiting future job opportunities.
• Vague language about performance expectations or unclear bonus structures.

Related Terms

• wRVU
• Hospital Assistance Agreement
• Retention Provisions

FAQs

• “Do hospital contracts differ from private group contracts?”
  • Yes, hospital contracts often rely more heavily on productivity metrics (e.g., wRVUs) and may involve stricter administrative duties.
• “Does a hospital contract mean I’m considered a hospital employee?”
  • Yes, hospital-employed physicians typically follow hospital HR policies, including performance reviews, vacation policies, and potential disciplinary actions.
• “Will I have to adhere to hospital committee service requirements?”
  • Possibly. Some contracts include language requiring participation in hospital committees, quality improvement programs, or teaching roles.
• “Can I moonlight while under a hospital contract?”
  • Many hospital contracts restrict outside employment unless specifically approved. Always ask for clear language on this topic.

Legal Disclaimer

The information provided in this glossary is for educational and informational purposes only and should not be construed as legal advice. While we strive to provide accurate and up-to-date information, this content is intended to help physicians better understand common contract terms and does not replace professional legal guidance.

For personalized advice regarding your employment contract or other legal concerns, we strongly recommend consulting with a qualified attorney who specializes in physician employment contracts.

You can find experienced legal professionals through our Physician Contract Lawyer Directory.