Terminating Your Doctor’s Employment Agreement

Many of our physician clients are not aware of their termination rights prior to meeting us.

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If you want to terminate your employment relationship, the first thing you need to do is read your contract.

Most physician employment agreements have substantial termination provisions. You need to know what you say about termination with and without cause, what notifications are required, and what other conditions the termination will trigger.

Often times, employment agreements have expiration date. For example, if the contract is a three-year agreement with an effective date of January 1, 2023 then the contract will expire on December 31, 2025. However, it is important to know the terms of auto-renewal. Some contracts require advance notification from the doctor to prevent automatic renewal.

We’ve also seen a lot of extensive provisions for stopped for no reason. Not all contracts include termination without cause. Termination without cause allows you to terminate your contract for any reason or no reason at all. There is usually a requirement to provide prior written notice, sometimes thirty days prior to termination, sometimes longer.

There are also frequent termination due to causal provisionswhich will list the reasons enabling the doctor to terminate the contract before the expiration date.

Regardless of the reason for the termination, there may be other clauses that will be triggered. It is very important to carefully review each of the terms of your contract with your attorney to find out what consequences or liabilities may be triggered.

For example, if you have non-competing terms, they can be triggered by any termination. There may also be other conditions that can be triggered such as redemption provisions, confidential information provisions, and others.

It is important to read the entire contract to know the consequences you will face if you terminate your employment agreement.

You’ll also want to contact your attorney early, so they can help you understand the consequences, but also so they can help you approach your employer appropriately. You may wish to ask your employer to waive certain provisions and your attorney can assist you in drafting relevant amendments.

We help our clients understand their contracts, potential consequences and the best route to termination.

If you have questions or need assistance with your health care contract or termination clause, contact Rickard & Associates today.

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