Receiving a physician employment contract is a significant milestone, representing the culmination of years of dedication and hard work. While the prospect of starting a new position is exciting, the contract itself is one of the most critical financial and legal documents you will ever sign. A thorough review is essential.
In Florida’s thriving and competitive healthcare industry, a well-negotiated agreement can set the stage for a successful career. A poorly understood one, however, can lead to a costly contract dispute and career limitations down the road.
A standard employment agreement is a legally binding document that outlines the terms of your employment. However, physician contracts are far from “standard.” They contain complex clauses governing everything from your compensation structure to where you can practice if you leave.
At Ace Your Case, our Florida physician contract lawyers believe in empowering physicians. We want you to sign your next contract with confidence. This guide will break down the most important clauses, potential pitfalls, and key negotiation points you need to understand before signing any medical employment contracts.
1. Compensation: Understanding Your True Value
Your compensation is more than just a base salary. It’s a package that can include bonuses, benefits, and productivity incentives. A careful review of these contract details is necessary to understand how each component of your Florida physician contract works.
The RVU Compensation Model Explained
Many physician employment contracts now use a compensation model based on Relative Value Units (RVUs). This system, developed by Medicare, assigns a value to nearly every medical service or procedure.
- What is the RVU compensation model? It’s a system where your productivity, and often a large portion of your salary, is tied to the total number of RVUs you generate.
- What are the three types of RVUs? Each service’s total RVU is comprised of three components:
- Work RVUs (wRVUs): The physician’s effort, skill, and time. This is the component most often used for compensation calculations.
- Practice Expense RVUs: The cost of non-physician labor, medical supplies, and office overhead.
- Malpractice RVUs: The cost of professional liability insurance premiums.
How is Salary Calculated Based on RVU?
To calculate your salary based on RVU, the total wRVUs you generate are multiplied by a “conversion factor.” How much does 1 RVU pay? This conversion factor is a specific dollar amount and is one of the most important negotiation points in your contract. It can vary dramatically based on your specialty, geographic location, and the payer mix of the practice. A review of this rate is a key part of any contract negotiation.
Understanding Your Benefits Section
Beyond direct pay, the benefits section of your employment agreement requires a thorough review. This includes health insurance, retirement plans, and paid time off. An experienced attorney can compare these benefits against industry standards to ensure they align with your career goals. This part of the contract review process is vital.
2. Restrictive Covenants: The Florida Non-Compete Agreement
Restrictive covenants, particularly non-compete agreements, are among the most contentious and critical sections of a physician’s contract. Protecting your interests in these contract terms is paramount.
Are Physician Non-Compete Agreements Enforceable in Florida?
Yes. Unlike in some other states, physician non-competes are generally enforceable in Florida, provided they are reasonable and protect a legitimate business interest of the employer. This means you can be legally restricted from working for a competitor in a specific geographic area after you leave a practice. A careful review of these contracts is a must.
What is the New Bill About Non-Compete Agreements in Florida?
While there has been a national trend and discussion about limiting non-competes, as of September 2025, they are still broadly enforceable in Florida. It’s crucial to negotiate these clauses in all physician employment contracts carefully.
How to Get Out of a Physician Non-Compete
The best way to get out of a non-compete is to negotiate it before you sign the contract. An experienced physician contract lawyer can help you during contract negotiations to modify key terms.
- Geographic Scope: Reducing the radius from the practice location.
- Time Restriction: Shortening the duration of the restriction.
- Scope of Services: Limiting the restriction to a specific sub-specialty.
3. Malpractice Insurance and Tail Coverage
Understanding your medical malpractice insurance is non-negotiable when undergoing a contract review.
What is Physician Tail Coverage?
Most medical practices use “claims-made” malpractice policies, which only cover claims made while the policy is active. If a claim is filed against you after you leave the practice for an incident that occurred during your employment, you will not be covered unless you have “tail coverage.” What is the tail cover of insurance? It is an endorsement that extends the reporting period for claims after you’ve left. Your employment contract must detail this.
Who Typically Pays for Tail Coverage?
This is a critical negotiation point in all physician contracts. How much is tail coverage for a physician? It can be extremely expensive. The contract should clearly state whether the employer or the physician is responsible for this cost upon termination. A skilled attorney will almost always negotiate for the employer to cover this expense.
4. Termination Clauses: Planning Your Exit Strategy
No one takes a job planning to leave, but your employment contract must have a clear and fair exit strategy. A thorough review of your termination responsibilities is crucial.
- “Without Cause” Termination: This is the most important clause. It allows either party to terminate the agreement without a specific reason, typically with 60-120 days’ written notice.
- “For Cause” Termination: This section lists the specific reasons you could be fired immediately, such as losing your medical license.
5. Dispute Resolution Procedures
Should a contract dispute arise, this clause dictates how it will be handled. Many employment contracts include mandatory arbitration clauses. It’s important to understand what rights you may be waiving and to ensure the procedures are fair to all parties involved. An attorney can help prevent disputes by clarifying this language during the contract review.
6. Beyond Compensation: Broader Compliance Concerns in Medical Contracts
While salary is a key focus, physician employment contracts for medical professionals often contain clauses that intersect with federal and state fraud and abuse laws. This is especially true for medical director roles or physicians in medical groups and private practices.
Your responsibilities and compensation structure must not violate the Anti-Kickback Statute or the Stark Law. For example, a bonus structure tied directly to the volume of referrals for related services could be seen as an illegal kickback. A thorough contract review by a lawyer with expertise in these healthcare laws is essential. These contracts must also consider the Health Insurance Portability and Accountability Act (HIPAA).
Why a Specialized Physician Contract Lawyer is Essential
The healthcare industry is a highly regulated field. A generic contract lawyer may not understand the legal issues unique to medical professionals.
An experienced healthcare attorney from a dedicated law firm understands state-specific regulations. Our medical contract lawyer team has the expertise to analyze complex physician employment agreements, including partnership agreements. They provide expert guidance to help you avoid legal pitfalls and potential risks. A review from a specialized law firm is invaluable.
How Much Does It Cost to Have a Lawyer Review a Contract?
While costs vary, most experienced healthcare attorneys offer physician contract review services for a flat fee. This is a small investment to protect your career.
A thorough review can identify red flags and provide negotiation points that could save you thousands. Our negotiation services are designed to help you secure favorable terms. We carefully review all contract details and contract terms during the employment contract review process.
If you are preparing to sign an employment agreement, do not leave your future to chance. Contact us online or call (954) 820-4453 to have your contract reviewed by an experienced attorney.
Meet Our Lead Physician Contract Attorney
Aaron Draizin
Aaron Draizin is an aggressive civil litigation attorney with extensive experience representing medical providers. His deep knowledge of insurance defense tactics gives our clients a decisive edge. Aaron now uses his insider knowledge and expertise to fight for the rights of healthcare professionals. He has been awarded an AV Preeminent peer review rating from Martindale-Hubbell and was named a Florida Super Lawyers Rising Star for five consecutive years.
Beyond Contract Review: Comprehensive Legal Support for Physicians
We understand that legal challenges for healthcare professionals are not confined to employment agreements or other contracts.
- A serious personal injury from an accident can affect your ability to work.
- As a busy professional, a car accident can be devastating. We handle all aspects of car accident claims.
- In the tragic event of a wrongful death, our compassionate attorneys provide steadfast legal support.
Florida Physician Contract FAQs
What is a standard employment agreement?
A standard employment agreement is a formal contract that outlines the basic terms of employment, such as job responsibilities, salary, and duration. However, it is critical for physicians to understand that their contracts are rarely “standard” due to the inclusion of complex, industry-specific clauses like RVU compensation, non-competes, and tail coverage, which require specialized legal review.
How much does it cost to have a lawyer review a contract?
The cost for a lawyer to review a physician employment contract can vary, but many experienced healthcare attorneys offer this service for a flat fee. This upfront investment is minor compared to the potential long-term financial and career implications of an unfavorable contract. A thorough review can often save a physician tens of thousands of dollars through negotiation.
Are non-competes still enforceable in Florida?
Yes, non-compete agreements are still enforceable in Florida for physicians if they are properly drafted and reasonable in scope, time, and geographic area. A detailed review of these contracts is recommended.
Who typically pays for tail coverage?
This is a heavily negotiated point in physician contracts. Ideally, the employer pays. However, many initial contracts place this significant cost on the departing physician.
What voids a contract in Florida?
A contract can be voided for reasons like fraud, duress, or if it has an illegal purpose. However, it’s more common to negotiate an exit through the “without cause” termination clause of the employment contract.
Protect Your Career with an Experienced Florida Physician Contract Lawyer
Your employment contract is the foundation of your professional life. Do not sign it without a thorough review from a qualified attorney who understands the nuances of Florida healthcare laws. The drafting of these contracts is complex.
The legal team at Ace Your Case is dedicated to advocating for physicians. We can help you understand the complexities of your agreement and negotiate terms that protect your financial and professional future.
Don’t leave your career to chance. Contact us today to schedule a confidential review of your physician employment contract.
