Termination for Cause - Physician Contract Glossary

Termination for Cause

Definition

Ending the contract because one party violated a specific clause or acted in a way that justifies immediate dismissal.

Examples in Context

“Employer may terminate Physician for cause if license is revoked, DEA registration is suspended, or the Physician engages in conduct deemed unethical by the Employer.”

“Termination for cause may occur if Physician fails to maintain hospital privileges in good standing for 30 consecutive days.”

Implications for Physicians

• May lose rights to severance pay or tail coverage cost-sharing.
• Could affect future credentialing or hospital privileges if termination is reported.

Negotiation Tips

• Limit the definition of "cause" to serious infractions such as loss of license, criminal conviction, or unethical conduct.
• Request a clear process for resolving minor issues before termination (e.g., written notice and time to correct the issue).

Red Flags and Pitfalls

• Broad or vague definitions such as "failure to meet expectations" or "conduct unbecoming."
• No opportunity to cure minor breaches before termination occurs.

Related Terms

• Opportunity to Cure
• Termination Without Cause
• Notice Period

FAQs

• What qualifies as "for cause" termination?
  • Typically major issues like loss of license, felony conviction, or serious patient safety violations.
• What happens to my final paycheck if terminated for cause?
  • Employers generally pay wages through the termination date, but bonuses or severance may be forfeited.
• Can I challenge a termination for cause?
  • Yes, you may pursue arbitration or legal action if contract terms were violated.

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.