Physician Contract Language: Outside Work Activities

Traditionally many physicians have earned extra income with locums or moon-lighting opportunities. Some physicians have even occasionally or regularly been expert witnesses in trials, or particularly in more saturated and populated areas taken call at multiple hospitals. Many academic and even private based physicians also speak regularly at events.

In the current trend of hospital employment, are these avenues for earning extra income not permitted in the employment contracts? Sometimes in contracts physicians aren't permitted to earn extra income outside what is listed in their employment contracts, or even in more unique situations, sometimes any extra income earned may be the right or need to be shared with the entity that owns the employment contract, such as the hospital that employs the physician. Steven Harris, a partner at McDonald Hopkins in Chicago has recently written an article in American Medical News deciphering the language of outside work in physician employment contracts. According to the article, some employers prohibit engagement in outside activities and services altogether, while others permit certain activities that do not interfere with the physician's day-to-day responsibilities.

The article mentions further that physicians need to be aware of requirements that give the employer the right to approve or reject outside activities, prior to signing any agreement. The physician's desired activities should be specifically identified in the employment agreement as permitted activities, even if the physician does not necessarily plan on outside employment but may wish to in the future.

If an employer does permit the physician to earn income in outside work situations, it's also important to determine if income generated from such activities belongs to the physician or the employer.

The last question is whether outside activities are covered by the physician's liability insurance policy.

The article goes on to explain how important negotiations are before the physician signs; contract clauses describing what the physician can and cannot do outside of the employment relationship are of key importance. It is best to address these issues at the onset of the employer-employee relationship so that all parties are on the same page from the beginning.

Read the full article in American Medical News, or click here:
http://www.ama-assn.org/amednews/2012/03/05/bicb0305.htm