Legal Guide for Physicians
Physician Employment
Agreement Guide
What every Texas physician should know — and negotiate — before signing an employment contract.
Key Provisions to Review
Compensation Structure
- Base salary and productivity bonuses (wRVU-based)
- Benefits package (health, dental, retirement, CME allowance)
- Signing bonus and relocation assistance
- Partnership track timeline and buy-in terms
Term & Termination
- Initial term and automatic renewal provisions
- Without-cause termination notice period (90-180 days typical)
- For-cause termination events and cure periods
- Post-termination obligations and tail coverage
Non-Compete & Restrictive Covenants
- Geographic restriction (radius from practice locations)
- Time restriction (typically 1-2 years in Texas)
- Scope restriction (specialty-specific)
- Texas-specific enforceability requirements under BOC § 15.50
Call Coverage & Schedule
- On-call rotation and weekend/holiday requirements
- Compensation for additional call coverage
- Moonlighting restrictions or permissions
- Telehealth and remote work provisions
Malpractice Insurance
- Occurrence vs. claims-made policy type
- Tail coverage responsibility upon departure
- Coverage limits and excess/umbrella provisions
- Who pays for tail insurance (critical negotiation point)
Intellectual Property & Records
- Patient record ownership and access rights
- Medical records retention obligations
- Intellectual property developed during employment
- Social media and online reputation provisions
Red Flags to Watch For
Texas Non-Compete Law for Physicians
Under Texas Business and Commerce Code § 15.50, a physician non-compete must include a buyout provision allowing the physician to purchase the covenant for a reasonable price. The agreement must also be ancillary to an otherwise enforceable agreement (like the employment contract itself) and contain reasonable limitations on time, geographic area, and scope of activity.
Additionally, the employer must provide access to a list of patients the physician treated during the 2 years preceding termination, and the departing physician must be allowed to provide continuity of care to patients being treated at the time of termination.
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