Parties to the Contract - Physician Contract Glossary

Parties to the Contract

Definition

The individuals or entities who sign and are legally bound by the contract.

Examples in Context

“This Agreement is entered into on January 1, 2025, between Dr. Jane Doe (Physician) and XYZ Medical Group, PLLC (Employer).”

“The Parties to this Agreement are ABC Hospital (Employer) and Dr. John Smith (Physician).”

Implications for Physicians

• Defines who is legally obligated to meet contract terms.
• Clarifies which entity provides your salary, benefits, and malpractice coverage.
• Important for understanding liability and responsibility if disputes arise.

Negotiation Tips

• Confirm the employer's legal name and structure (e.g., PLLC, PA, Nonprofit) to ensure contract validity.
• Request the contract specify which entity controls decisions on scheduling, bonuses, and termination.
• If a non-physician-owned entity is listed as the employer, confirm that your state laws allow this arrangement.

Red Flags and Pitfalls

• Signing with an unclear or incorrect employer name may invalidate portions of the contract.
• Failing to verify if a non-physician-owned organization is legally permitted to employ physicians in your state.
• Contracts that reference "affiliated entities" without clearly defining who they are.

Related Terms

• Employer
• Independent Contractor Agreement
• Commencement Date

FAQs

• “What happens if my employer merges with another group?”
  • Your contract may automatically transfer to the new employer. Ask for written confirmation to avoid confusion.
• “Can a hospital system be the other party?”
  • Yes, if permitted by state law. Some states restrict non-physician-owned entities from employing physicians directly.
• “If the employer’s name changes, is my contract still valid?”
  • Typically yes, but request a written amendment to reflect the updated name.

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.