MMS Model Physician Employment Contract

With high numbers of physicians opting for employed positions, either when first starting out in practice or when making mid-career changes, the process of understanding and negotiating the terms and conditions of their employment takes on an even greater importance.

Further, with the “Medical Home” concept effectively codified into the federally-mandated program for Medicare Accountable Care Organizations (ACOs), or adapted into ACO models created by private insurers, many physicians have begun to affiliate with such entities in their group practice or hospital/health system employment settings.

In addition, the ACO and Medical Home-related provisions and the cost containment methodologies introduced at the state level by the 2012 Massachusetts Health Care Cost Containment Law (Chapter 224) will likely present new challenges and opportunities for employed physicians and physician employers.

Physicians in or contemplating employment relationships in this dynamic and evolving environment will need clarity in understanding their legal rights and obligations as employees or employers.

This Model Physician Employment Contract, updated and revised in October 2012, is designed to be a helpful tool for physicians when moving into an employment setting. It is meant to address employment in private practice settings (including large and small groups), in hospital and other institutional settings, and in solo practice.

It is structured as guidance around the various issues and considerations affecting physician employment in such settings, and is presented in two parts, with introductory comment on particular topics and actual model contract language.

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