Contracts for Part-Time Physicians

Physician employment agreements are essential for clearly outlining expectations around important features such as compensation and what each party owes the other. When physicians work part time, contracts often include added layers of complexity that should not be overlooked. Scheduling flexibility, adjusted compensation structures, benefit eligibility, and call responsibilities can vary widely from full-time roles. If these details are not clearly addressed, misunderstandings may arise over time. Learn more about the key features of part-time physician contracts that should not be overlooked by either party.

What Should Physicians Look For In Contracts?

While all physician contracts are different, there are some common features that physicians should take note of. These are the contract terms that deserve the most attention, allowing physicians to make informed decisions and protect long-term professional interests:

1. Compensation and Benefits

Compensation is often the most closely scrutinized aspect of a contract. Physicians should confirm that the contract clearly defines:

Base salary or hourly rate: The contract should clearly state the amount of compensation and explain the frequency and method of payment.
Bonuses or incentive payments: Any additional compensation should be defined in detail, including whether it is tied to productivity, quality metrics, or patient satisfaction benchmarks.
Benefits: The agreement should outline available benefits such as health insurance, retirement plans, malpractice coverage, paid leave, and continuing medical education allowances.
Deductions and clawbacks: The contract should specify any circumstances under which bonuses or other payments may be reduced or required to be repaid.

2. Scope of Duties and Expectations

Contracts should specify the physician’s role, responsibilities, and expectations:

Clinical duties should be outlined in detail, including patient load, clinic hours, and call coverage requirements
Any administrative or leadership roles should be specifically identified, along with the time commitment involved
On-call, weekend, or after-hours obligations should be clearly stated to avoid unexpected scheduling demands
Teaching or research responsibilities, if applicable, should be addressed so expectations align with the scope of the position

3. Term, Termination, and Renewal

Understanding the contract’s duration and exit provisions is essential. Here are some aspects to look at:

Contract start and end dates
Conditions for renewal or extension
Termination clauses, including notice periods, cause, or breach provisions
Non-compete clauses restricting future employment opportunities

4. Malpractice and Liability

Physicians must ensure that the contract addresses professional liability:

Whether malpractice insurance is provided or required
Coverage limits and tail coverage for claims arising after the contract ends
Responsibility for deductibles, premiums, and defense costs

5. Dispute Resolution and Governing Law

Contracts should specify how disputes will be resolved:

Mediation or arbitration clauses
Venue and jurisdiction
Governing law applicable to the contract

6. Other Considerations

While not an exhaustive list, physicians should also review provisions related to:

Vacation, CME, and continuing education reimbursement
Relocation or signing bonuses
Intellectual property or research agreements
Practice exit or buyout terms

Special Considerations for Part-Time Physicians

While many contractual principles remain the same as for full-time physicians, part-time arrangements require special attention to ensure fair compensation, manageable workload, and compliance with legal and regulatory requirements.

1. Clear Definition of Hours and Duties

For part-time physicians, the contract should clearly define both the expected schedule and the scope of work. Key elements to specify include:

Number of clinic or hospital hours per week: Clearly state weekly expectations to prevent overcommitment.
On-call obligations and weekend coverage: Specify frequency, duration, and any compensation adjustments.
Administrative responsibilities: Define duties such as charting, committee work, or leadership tasks.
Teaching, research, or supervisory roles: Clarify time commitment and responsibilities for academic or research-related work.

2. Compensation and Benefits

Part-time arrangements often involve adjustments to salary and benefits compared to full-time roles. Contracts should address all aspects of financial and professional compensation:

Base salary or hourly rate: Include adjustments for reduced hours or patient load.
Bonuses or incentive programs: Define eligibility and calculation methods tied to productivity, quality, or patient satisfaction.
Benefits: Address health insurance, retirement contributions, paid leave, and malpractice coverage, including any prorated arrangements.
Additional reimbursements: Include CME allowances, professional dues, or work-related expenses.

3. Flexibility and Scheduling Rights

Flexibility is often a primary motivation for part-time employment. Contracts should include provisions that protect schedule stability and personal planning:

Rights to adjust work hours or clinical days: Allow for predictable scheduling.
Options for telemedicine or remote work: Include guidelines for remote practice if applicable.
Vacation and personal days coverage: Ensure clarity on how time off is requested and covered.

4. Termination and Renewal Provisions

Part-time physician contracts should provide clear guidance on how the agreement may end and the process for renewal. Well-defined termination and renewal provisions protect both the physician and the employer by reducing uncertainty and avoiding disputes. Key elements to address include:

Contract term and renewal procedures: Specify the contract start and end dates, as well as the conditions for automatic renewal or renegotiation. Clear timelines help both parties plan for staffing and workload continuity.
Termination clauses for cause or convenience: Outline circumstances under which either party may end the contract, including required notice periods. This ensures fair treatment and prevents abrupt employment interruptions.
Financial implications: Clarify any penalties, obligations, or impacts on compensation and benefits upon termination, including prorated payments or repayment of signing bonuses if applicable.

5. Professional Development and Career Advancement

Part-time physicians may have fewer opportunities for promotions or leadership roles. Contracts should clarify:

Access to CME and training: Ensure continued professional development.
Eligibility for teaching or research projects: Maintain academic or research engagement.
Opportunities for full-time conversion: Specify if transitioning to full-time is possible.

Contact an Experienced Physician Contract Attorney

Physician contracts can be very complex legal documents, and a physician’s part-time status does not reduce their significance. A contract that appears straightforward may contain provisions with lasting financial or professional consequences. Having an experienced physician contract attorney review a contract can ensure that part-time physicians receive fair treatment, appropriate protections, and clear expectations with their physician employment.