Experienced Legal Counsel for Physicians, Medical Groups, and Healthcare Employers Throughout Florida

A physician employment agreement is more than an employment contract—it defines your compensation, career opportunities, professional obligations, and long-term financial future. Whether you are accepting your first position after residency, joining a private practice, becoming part of a hospital system, or negotiating a partnership opportunity, the terms of your employment agreement can have lasting consequences.

14 Attorneys and 300+ Years of Combined Experience

Douglas N. Burnett is a former Executive Attorney for a National Medical Provider with Multiple Practices and over 200 Locations

At St. Johns Law Group, we represent physicians, medical practices, physician groups, dental practices, and healthcare businesses in the negotiation, review, drafting, and enforcement of physician employment agreements. We help both healthcare employers and physicians negotiate practical, legally sound agreements that protect their interests while reducing the potential for future disputes.

Our attorneys combine experience in healthcare business law, commercial transactions, employment agreements, business litigation, commercial real estate, and medical practice acquisitions to provide comprehensive legal counsel throughout every stage of a physician’s career.

Why Physician Employment Agreements Matter

Many physicians spend years preparing for their profession but only a few hours reviewing one of the most important contracts they will ever sign.

Employment agreements often determine:

• Your total compensation
• Future earning potential
• Work schedule
• Productivity expectations
• Call responsibilities
• Partnership opportunities
• Ownership rights
• Benefits
• Restrictive covenants and non-competes
• Exit rights
• Professional liability obligations

A poorly negotiated agreement may affect your income, career mobility, and future opportunities for years to come.

Comprehensive Physician Contract Review

Every physician practice is different, and every employment agreement should reflect the goals of both the employer and the physician.

Our attorneys carefully review agreements for:

• Compensation provisions
• Productivity incentives
• Bonus structures
• RVU formulas
• Signing bonuses
• Relocation assistance
• Call coverage
• Paid time off
• Continuing Medical Education (CME)
• Benefits
• Malpractice insurance
• Tail coverage
• Restrictive covenants
• Partnership opportunities
• Termination provisions
• Buy-in requirements
• Ownership rights
• Dispute resolution
• Confidentiality
• Intellectual property
• Compliance provisions

Compensation Structure

Compensation is often far more complex than a simple annual salary.

We help clients evaluate and negotiate:

• Base salary
• Guaranteed income periods
• Productivity compensation
• Collections-based compensation
• Quality incentives
• Profit-sharing
• Incentive compensation
• Signing bonuses
• Retention bonuses
• Relocation reimbursement
• Annual salary adjustments

Understanding how compensation changes over time is essential to evaluating the true value of an employment offer.

RVU-Based Compensation

Many physician employment agreements use Relative Value Units (RVUs) to determine productivity compensation.

Important considerations include:

• RVU conversion factors

• Productivity thresholds

• Quality metrics

• Benchmark comparisons

• Reporting transparency

• Bonus calculations

• Documentation expectations

• Changes to compensation formulas

A physician should clearly understand how RVUs are calculated and whether the compensation formula fairly reflects expected workload.

Productivity Bonuses and Incentive Compensation

Performance incentives can significantly increase total compensation.

We help physicians evaluate:

• Productivity bonuses

• Quality bonuses

• Patient satisfaction incentives

• Collections incentives

• Annual bonus calculations

• Practice profitability incentives

• Group performance metrics

• Discretionary bonuses

Carefully drafted bonus provisions help reduce future disagreements regarding compensation.

Call Coverage Responsibilities

Call obligations can substantially affect work-life balance and physician satisfaction.

Employment agreements should clearly address:

• Frequency of call

• Weekend coverage

• Holiday coverage

• Hospital coverage

• Specialty call

• Backup call

• Compensation for additional call

• Call schedule modifications

Clear expectations reduce misunderstandings and promote fairness among providers.

Restrictive Covenants and Noncompetition Agreements

Restrictive covenants are often among the most heavily negotiated provisions in a physician employment agreement.

These provisions may restrict a physician’s ability to practice medicine after leaving an employer.

Common restrictions include:

• Geographic limitations

• Time restrictions

• Patient solicitation

• Employee recruitment

• Referral relationships

• Confidential information

Whether a restrictive covenant is enforceable depends on the specific language of the agreement and applicable law. Negotiating reasonable restrictions before signing an agreement can help preserve future career opportunities.

Malpractice Insurance and Tail Coverage

Professional liability coverage is a critical component of every physician employment agreement.

Contracts should clearly identify:

• Who pays malpractice premiums

• Coverage limits

• Claims-made or occurrence policies

• Tail insurance obligations

• Cost allocation upon termination

• Coverage during transition periods

Tail insurance can represent a significant financial obligation if not addressed during contract negotiations.

Partnership Track and Ownership Opportunities

Many physicians accept employment with the expectation of eventually becoming owners.

Partnership provisions should answer important questions, including:

• Is partnership guaranteed or discretionary?

• When is partnership eligibility determined?

• How is ownership valued?

• What is the buy-in amount?

• How are profits distributed?

• What voting rights accompany ownership?

• How are future buyouts handled?

• What happens upon retirement or disability?

Clearly defining the path to ownership helps avoid misunderstandings later in the relationship.

Termination Provisions

Every employment agreement should establish clear procedures for ending the relationship.

Important provisions include:

Without Cause Termination

Many agreements allow either party to terminate employment after providing advance written notice.

For Cause Termination

Employers often reserve immediate termination rights for specified events such as:

• License suspension

• Criminal conduct

• Professional misconduct

• Material breach of contract

• Loss of hospital privileges

Post-Termination Obligations

Contracts should also address:

• Patient transition

• Medical records

• Confidential information

• Final compensation

• Benefits

• Restrictive covenants

• Tail insurance

• Return of practice property

Negotiating Physician Employment Agreements

Every contract is negotiable.

Before signing, physicians should understand:

• Compensation compared to market standards

• Long-term earning potential

• Bonus opportunities

• Practice culture

• Ownership opportunities

• Restrictive covenants

• Termination rights

• Professional liability obligations

• Work schedule expectations

Similarly, healthcare employers benefit from well-drafted agreements that clearly define expectations, reduce disputes, and support physician retention.

Management Services Agreements (MSAs) and Professional Services Agreements (PSAs)

As healthcare delivery models continue to evolve, many physician practices, dental practices, medical spas, and specialty healthcare providers utilize Management Services Agreements (MSAs) and Professional Services Agreements (PSAs) to structure relationships between clinical providers and management organizations.

These agreements are often central to practice operations, mergers and acquisitions, private equity transactions, and multi-location healthcare businesses.

Management Services Agreements (MSAs)

A Management Services Agreement establishes the relationship between a healthcare practice and a management services organization (MSO). Depending on the transaction, the MSO may provide administrative and business support such as:

• Human resources and staffing support

• Billing and revenue cycle management

• Marketing and patient outreach

• Information technology services

• Office management

• Accounting and bookkeeping

• Purchasing and vendor management

• Equipment procurement

• Facilities management

• Business consulting

A carefully drafted MSA should clearly define each party’s responsibilities, management fees, performance expectations, confidentiality obligations, termination rights, and compliance with applicable healthcare laws and regulations.

Professional Services Agreements (PSAs)

Professional Services Agreements govern the clinical services provided by physicians and other licensed healthcare professionals. These agreements frequently address:

• Scope of professional services

• Compensation methodology

• Scheduling expectations

• Quality and performance standards

• Documentation requirements

• Medical director responsibilities

• Independent contractor or employment status

• Professional liability coverage

• Compliance obligations

• Term and termination provisions

Because MSAs and PSAs often work together in modern healthcare organizations, it is important that they are drafted and reviewed as part of an overall business strategy. Our attorneys help healthcare providers and practice owners negotiate agreements that support operational efficiency while protecting ownership interests and reducing the potential for future disputes.

We Represent Both Physicians and Medical Practices

St. Johns Law Group represents:

• Individual physicians

• Medical groups

• Private practices

• Specialty practices

• Primary care providers

• Hospital-affiliated practices

• Dental practices

• Medical spas

• Urgent care centers

• Ambulatory surgery centers

• Healthcare employers

Because we understand the priorities of both employers and physicians, we help negotiate agreements that balance business objectives with long-term professional success.

A Multidisciplinary Team for Healthcare Businesses

Physician employment agreements often involve more than employment law alone. Depending on the circumstances, our attorneys assist with:

• Medical practice formation

• Commercial real estate and medical office leasing

• Shareholder and partnership agreements

• Medical practice acquisitions and sales

• Tax planning

• Business succession planning

• Commercial litigation

• Corporate governance

• Outside General Counsel services

Our multidisciplinary approach allows healthcare clients to receive coordinated legal advice throughout every stage of their practice.

Frequently Asked Questions

Should I have an attorney review my physician employment agreement?

Yes. Employment agreements often contain complex provisions regarding compensation, restrictive covenants, malpractice insurance, partnership opportunities, and termination rights. A legal review can help identify issues before you sign.

Are physician employment agreements negotiable?

In many cases, yes. Salary, bonus structures, RVU formulas, restrictive covenants, call coverage, relocation benefits, tail insurance, and partnership provisions may all be negotiable depending on the employer and circumstances.

Who pays for tail insurance?

The answer depends on the language of the employment agreement. Some employers pay the full cost, some require the physician to pay, and others share the expense. Tail insurance obligations should be clearly addressed before signing.

Can a physician negotiate a noncompete agreement?

Often, yes. The geographic scope, duration, and other restrictive covenant terms may be negotiated before execution of the agreement. Understanding these provisions is essential because they may affect future employment opportunities.

Protect Your Career Before You Sign

Whether you are accepting your first physician position, negotiating a new opportunity, joining a private practice, or preparing for partnership, your employment agreement deserves careful legal review.

The attorneys at St. Johns Law Group advise physicians and healthcare employers throughout Northeast Florida on physician employment agreements, compensation structures, partnership arrangements, restrictive covenants, and healthcare business matters.

Contact St. Johns Law Group today to schedule a consultation and protect your professional future before you sign.

 Call us today at (904) 495-0400 or email Douglas N. Burnett directly.

At St. Johns Law Group, we are committed to delivering the Dedicated & Responsive Service® you can count on.