Page 13 - DMN4Q21

Scope of Duties, Responsibilities, and Scheduling:
The agreement should adequately describe
the duties and responsibilities the physician
is expected to fulfill as part of his or her employment, including any administrative, supervision, and/or non-clinical responsibilities that may be required. The agreement should specify the total work hours and any amount of call coverage the physician may be required to work. The physician should also understand how the physician’s schedule will be determined, including whether the employer utilizes
any seniority system or other procedure for requesting time off or preparing the schedule. If the employer has offices or facilities in multiple locations, the physician should understand at which location(s) he or is expected to work and whether those location(s) may be subject to change.
Compensation and Sign-On Bonuses/Incentive Payments:
The agreement should identify the physician’s compensation to be paid by the employer
for services rendered by the physician during his or her employment. If the physician’s compensation (including any periodic or annual bonuses) follows a certain model or formula, the model or formula should be specified
in the agreement, with sample calculations
if necessary or appropriate for clarification purposes. Physicians, and particularly physicians with several years of experience or who are practicing in high-income specialties, should
be mindful of provisions which impose caps on compensations, such as a certain percentile of
a national survey. Likewise, physicians who are offered any sign-on bonus or other incentive payment to become employed at a practice or facility should understand the amount of the bonus or incentive, how and when the bonus or
incentive will be paid, and whether any amount of the bonus or incentive may be subject to repayment under any circumstances.
Agreement Not to Compete: Michigan law generally enforces physician non-compete agreements, provided (1) they are reasonable in duration, scope, and geographic area, and (2) they protect the employer’s reasonable competitive business interests. Physicians should understand whether their agreement contains a non-compete provision which may limit his or her ability to practice medicine during their employment and/or after their employment terminates, including the terms of the provision and under what circumstances the provision applies. Although non-compete agreements which
are exceedingly vague or broad may not be enforceable, physicians should not sign an agreement assuming a non-compete provision in the agreement is unenforceable.
Professional Liability Insurance: The agreement should specify who is responsible for obtaining and maintaining professional liability insurance for claims made against the physicians
for medical services rendered during the physician’s employment, including the amount of coverage, and which party bears the expense. If an employer will be furnishing “claims made” professional liability insurance, the agreement should also specify whether the employer will also maintain post-termination or “tail” coverage for the physician at its expense.
Indemnification: Physicians should be mindful
of any provisions which may require the physician to indemnify the employer under any circumstances, as well as any limitations of such indemnification. For example, it is increasingly common for employment agreements
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