Restrictive Covenants In Physician Employment Agreements

Date Posted: October 4, 2021 by admin


Medical contracts may contain one, two or more restrictive agreements. And there are a large number of streams that hospitals and health systems rely on to protect their affairs. The quintessence, says Dr. Knoll, is that if hospital doctors come up against a non-compete clause and can`t convince a potential employer to remove it from the contract, they should expect it to remain in effect during their employment. But the most painful and obviously unfair restrictive agreements are those that allow the group not only to obtain a court injunction to prevent a former hospital practitioner from practicing in the same geographical area, but also to oblige the hospital doctor to pay lump sum damages. In the worst case, it could amount to two years` salary, plus any legal costs incurred by the former employer when applying the restrictive agreement. For example, it is important to know what triggers these restrictive alliances to come into effect. Ideally, you want them to only take effect if you stop with good reason. Restrictive agreements are a way for employers and hospitals to protect their own interests, not yours.

These restrictions are carefully formulated and, for various reasons, contained in the treaties. Geographical and temporal limitations, Dr. Knoll says, generally prohibit physicians from practicing in a geographic area defined by the contract for at least two years. And prohibitions on debauchery are generally enforced, he adds, “because it`s not fair to steal from someone`s employees.” It is likely that one day, during your career, you will come across an employment contract containing a restrictive agreement. The current competition for today`s health dollars has prompted employers of all sizes to rely on restrictive agreements to help patient populations and sources of transfer from their practices (i.e.: Protecting the key components of a doctor`s practice goodwill). Employers should bear in mind that, according to national law, agreements cannot be enforceable until a worker has worked for the practice between 12 months and 18 months, and that an agreement submitted to a doctor after working in an office may not be applicable, unless it is accompanied by additional remuneration from the practice to the doctor. . .

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