When hiring a physician, medical practices must consider a variety of laws and regulations that ensure compliance with both healthcare-specific and general employment requirements. Below is a comprehensive overview of the key legal considerations and the provisions that should be included in legal documents when hiring a physician.

Key Legal Considerations and Provisions for Hiring Physicians

1. Credentialing and Licensure
   • Legal Requirements
     • State Medical Licensure: Physicians must be licensed in the state where they practice. Ensure that the physician’s license is active and in good standing.
     • Credentialing: Physicians must be credentialed with hospitals, insurance companies, and healthcare networks to provide care and receive reimbursements.
   • Provisions to Include
     • Verification Clause: Include a provision that requires the physician to maintain their licensure and certifications.
     • Credentialing Process: Outline the physician’s responsibilities in maintaining their credentials and participating in re-credentialing as needed.
2. Compensation and Benefits
   • Legal Requirements
     • Fair Labor Standards Act (FLSA): While physicians are typically exempt from overtime provisions, compensation structures must still comply with applicable wage laws.
     • State Laws: Some states may have specific requirements for physician compensation or benefits.
   • Provisions to Include:
     • Compensation Structure: Clearly define base salary, bonuses, incentive plans, and any productivity-based compensation.
     • Benefits Package: Outline health insurance, retirement plans, malpractice insurance coverage, and other benefits.
3. Malpractice Insurance
   • Legal Requirements
     • State Requirements: Some states require medical practices to provide malpractice insurance for employed physicians.
     • Tail Coverage: Consideration of tail coverage is essential when a physician leaves the practice.
   • Provisions to Include
     • Insurance Details: Specify the type and amount of malpractice insurance provided by the practice.
     • Responsibility for Premiums: Indicate whether the practice or the physician is responsible for paying the premiums.
4. Non-Compete and Non-Solicitation Agreements
   • Legal Requirements
     • Enforceability: Non-compete agreements must be reasonable in scope, duration, and geography to be enforceable. Some states have specific laws restricting or regulating non-compete clauses for physicians.
   • Provisions to Include
     • Non-Compete Clause: Define the scope and duration of any non-compete restrictions, ensuring compliance with state laws.
     • Non-Solicitation Clause: Prevent the physician from soliciting patients or staff if they leave the practice.
5. Compliance with Healthcare Laws
   • Legal Requirements
     • Stark Law: Prohibits physician referrals for certain services payable by Medicare or Medicaid to an entity with which the physician has a financial relationship.
     • Anti-Kickback Statute: Prohibits the exchange of remuneration for referrals of services covered by federal healthcare programs.
     • HIPAA (Health Insurance Portability and Accountability Act): Requires the protection and confidential handling of protected health information (PHI).
   • Provisions to Include
     • Compliance Obligations: Require the physician to comply with all applicable federal and state healthcare laws.
     • HIPAA Training: Mandate regular training on patient privacy and data security.
6. Termination and Severance
   • Legal Requirements
     • At-Will Employment: Depending on the state, employment may be at-will unless otherwise specified in the contract.
   • Provisions to Include
     • Termination Conditions: Clearly outline conditions for termination with or without cause.
     • Notice Periods: Specify required notice periods for termination by either party.
     • Severance Packages: Detail any severance benefits provided upon termination.
7. Professional Conduct and Duties
   • Legal Requirements
     • Medical Ethics and Standards: Physicians must adhere to professional conduct standards set by medical boards and professional organizations.
   • Provisions to Include
     • Duties and Responsibilities: Clearly outline the physician’s duties, including patient care expectations, administrative responsibilities, and participation in meetings.
     • Professional Conduct: Include a provision requiring adherence to ethical standards and the practice’s policies.
8. Dispute Resolution
   • Legal Requirements
     • Arbitration Agreements: Some states require specific language for arbitration clauses to be enforceable.
   • Provisions to Include
     • Dispute Resolution Process: Outline the process for resolving disputes, including mediation or arbitration, and specify the governing law and jurisdiction.
9. Indemnification and Liability
   • Legal Requirements
     • Liability Protection: Address indemnification for legal claims arising from the physician’s duties, barring misconduct or negligence.
   • Provisions to Include
     • Indemnification Clause: Provide indemnification for the physician against legal claims related to their professional duties.
     • Liability Coverage: Ensure alignment with the practice’s malpractice insurance policy.

How Mir & Bashir LLC Can Help

At Mir & Bashir LLC, we offer comprehensive legal services to assist medical practices in navigating the complexities of hiring physicians. Our services include:

• Contract Drafting and Review: We draft tailored employment agreements that comply with federal and state laws and protect the interests of both the practice and the physician.
• Regulatory Compliance: Our team ensures compliance with healthcare-specific regulations, including Stark Law, the Anti-Kickback Statute, and HIPAA.
• Dispute Resolution: We provide professional representation in resolving disputes through negotiation, mediation, or arbitration.

By partnering with Mir & Bashir LLC, medical practices can confidently hire and retain physicians while minimizing legal risks and fostering a positive work environment.