Shortage spurs physician employment

The physician shortage in the US and the rising cost of operating a practice is prompting more hospitals to retain physicians through employment agreements, according to consulting firm Deloitte. However, with more employment contracts comes greater potential for misunderstandings among parties. Deloitte suggests that every physician contract contains the following elements:

• Compensation
• Term and termination
• Duties and performance expectations
• Restrictive covenants
• Moonlighting
• Malpractice/medical liability, including coverage terms, funding, and issues of sovereign immunity
• Intellectual property ownership
• Employee benefits, including health, life, and disability insurance; retirement plan participation, financial contributions, and vesting options; CME allowance, including board certification time and tuition reimbursement; business expense allowance; participation and eligibility; and sabbatical or visiting clinician program allowances