Employment Agreement for Private Clinics and Practices

What a good one includes

• A precise definition of the employee's clinical or administrative duties, including licensing requirements and adherence to professional board standards.
• Clear terms detailing base salary, hourly rates, or commission splits, alongside specific rules on how insurance billing and patient payments are handled.
• A strict clause clarifying that all patient medical records, charts, and contact information remain the sole property of the clinic, coupled with absolute confidentiality mandates.
• Explicit requirements stating who provides and pays for malpractice insurance, including provisions for tail coverage if the employment ends.
• Enforceable, geographically reasonable restrictions that prevent departing staff from poaching your patient database or setting up a competing practice nearby.
• Detailed procedures for how either party can end the agreement, including required notice periods and patient care transition responsibilities to ensure continuity of care.

Common mistakes to avoid

• Using a generic corporate employment template that fails to address healthcare-specific regulations like HIPAA, patient record ownership, or professional licensing.
• Failing to clarify who owns the patient list, which often leads to departing practitioners actively soliciting your clinic's clients to their new location.
• Omitting clear terms regarding malpractice insurance and tail coverage, leaving the practice vulnerable to expensive liability disputes down the road.
• Vaguely defining billing and administrative responsibilities, resulting in disputes over unpaid insurance claims or incomplete patient charting.

Frequently asked questions