Licensed for Care, not Commerce: Ethical Excellence in Healthcare

By: Jeff Cohen

A physician recently shared a scenario that highlights an issue many healthcare professionals face today—compartmentalizing professional responsibilities. The doctor works with a platform focusing on GLP-1 receptor agonists (GLPs). During a consultation, a patient mentioned experiencing rectal bleeding. When asked, the patient confirmed she had undergone a colonoscopy two years prior. The doctor proceeded to prescribe the GLP but found himself unnerved afterward, ultimately reaching out to discuss the situation.

His justification? He wasn’t the patient’s primary care physician, and the patient had signed consent forms acknowledging the limited scope of his role, which solely involved consulting on the use of GLPs for weight management. However, his discomfort led him to reevaluate his actions—a response that was both appropriate and necessary.

Healthcare professionals tasked with prescribing authority cannot isolate their obligations as simply transactional. Licensing boards and courts will seldom consider compartmentalization as a valid defense for failure to act comprehensively in a patient’s best interest. The perception that a clinician is “lending their license” for the purpose of product promotion often undercuts any argument of limited responsibility. This perspective is especially prominent in litigation and regulatory evaluations, where such compartmentalization may be seen as negligence.

Physicians must understand their roles as “captains of the ship,” an analogy that underscores their overarching responsibility for patient care. A license to prescribe encompasses more than writing a prescription; it requires critical judgment, professional advice, and thorough documentation. Attempting to minimize scope or avoid responsibility is not a sustainable—or ethical—approach.

Licensed healthcare professionals must adopt a proactive stance that prioritizes patient care, regardless of the limits they intend to impose on their roles. The case above is a clear reminder of the importance of doing more than the bare minimum. The doctor should have gone beyond the prescribed scope to address the patient’s rectal bleeding as a potential symptom requiring further investigation.

While the patient stated she had a colonoscopy two years prior, the standard of care should have prompted the physician to readdress the issue by recommending another colonoscopy or ensuring the patient’s records confirmed her health status. Furthermore, prescribing the GLP without resolving the bleeding issue was a decision that could easily be flagged as risky. A more cautious—and appropriate—course of action would have been to delay prescribing the GLP until further diagnostic confirmation, such as a negative colonoscopy, had been obtained.

This process not only aligns with ethical medical practice but also offers legal protection. Thorough documentation of a physician’s actions to address potential health risks can serve as evidence of their commitment to the patient’s well-being in regulatory or judicial scrutiny.

The law is largely indifferent to whether patients take responsibility for managing their health. It will not hold the patient accountable for neglecting to follow up on a medical recommendation. Instead, the burden of responsibility will fall on the licensed professional. Courts and state boards expect physicians to act with diligence and prioritize the health of their patients by addressing all relevant medical concerns.

Simply turning a blind eye or adhering narrowly to the consultative scope of a practice does little to fulfill a prescriber’s professional duty. Healthcare professionals must avoid falling into the trap of working in silos, particularly when patient well-being may be compromised. The argument of limited liability is rarely sufficient to protect against lawsuits or regulatory consequences.

The lesson here is straightforward but vital. If you hold prescribing authority, you are not only responsible for the medication but also for the broader context in which it is prescribed. It is critical to:

  • Assess the Whole Patient: Go beyond the immediate reason for the consultation to identify and address other potential health concerns.
  • Document Everything: Provide clear and detailed records of your thought process, medical advice, and actions to demonstrate a comprehensive approach to patient care.
  • Act Judiciously: When in doubt, err on the side of patient safety. Delaying a prescription or recommending additional diagnostics may inconvenience the patient temporarily but likely serves their best interests—and protects you professionally—in the long run.

Healthcare practitioners who attempt to compartmentalize responsibilities risk undermining the very foundation of ethical patient care. Whether serving as a primary care physician or a specialist consultant, prescribers must maintain a commitment to the overarching duty of care owed to each patient.

For the doctor in this scenario, making the call to revisit his decision was the right move and reflects the kind of conscientious practice that should be the standard for all healthcare professionals. By doing more—giving professional recommendations, taking responsibility for comprehensive care, and documenting key decisions—providers not only safeguard their patients but also uphold their professional integrity and legal protection. Ultimately, licensed professionals must remember—being the “captain of the ship” is not just a metaphor. It’s a non-negotiable responsibility.

Employment Agreement for MD or DO: Key Components, Negotiation Tips, and Legal Insights

Employment Agreement for MD or DO

Securing a fair and comprehensive employment agreement is critical for both Medical Doctors (MDs) and Doctors of Osteopathic Medicine (DOs). Whether you’re a physician entering a new role or an employer drafting a contract, understanding the nuances of these agreements ensures clarity, protects rights, and fosters a positive professional relationship.

In this guide, we’ll break down the essential components of an employment agreement for MDs and DOs, offer actionable negotiation strategies, and highlight common pitfalls to avoid.


Why Employment Agreements Matter for Physicians

Employment agreements for physicians are more than just formalities—they’re legally binding documents that define your professional journey. For MDs and DOs, these contracts outline compensation, responsibilities, malpractice coverage, and post-employment restrictions. A well-structured agreement:

  • Safeguards against misunderstandings.
  • Ensures compliance with state and federal regulations.
  • Protects both parties’ interests in case of disputes.

While MDs and DOs share similar scopes of practice in many states, their employment agreements often follow comparable structures. However, osteopathic physicians may negotiate terms related to osteopathic manipulative treatment (OMT) if applicable.

Also Read: The Fine Print of Family Ties in Healthcare Compliance


Key Components of an MD or DO Employment Agreement

1. Position and Responsibilities

Clearly defined roles prevent future conflicts. This section should specify:

  • Job Title and Specialty: e.g., “Cardiologist” or “Primary Care DO.”
  • Clinical Duties: Patient load, call schedules, and administrative tasks.
  • Practice Locations: Whether multiple sites (e.g., hospitals, clinics) are involved.

Pro Tip: Ensure the agreement allows flexibility for evolving healthcare needs, such as telemedicine services.


2. Compensation Structure

Compensation models for physicians vary widely. Common structures include:

  • Base Salary: A guaranteed annual income.
  • Productivity-Based Pay: Bonuses tied to Relative Value Units (RVUs) or patient revenue.
  • Profit-Sharing or Equity: For roles in private practices or partnerships.

Example: A DO might earn a 250,000 basesalaryplus 15500,000 annually.


3. Benefits and Perks

Beyond salary, benefits significantly impact job satisfaction. Key inclusions:

  • Health, Dental, and Vision Insurance
  • Retirement Plans: 401(k) or 403(b) with employer matching.
  • Paid Time Off (PTO): Vacation, sick days, and continuing medical education (CME) leave.
  • Signing Bonus or Relocation Assistance: Common for high-demand specialties.

Negotiation Insight: Employers may offer student loan repayment assistance to attract early-career physicians.


4. Malpractice Insurance

Malpractice coverage is non-negotiable for physicians. Contracts should specify:

  • Type of Coverage: Claims-made vs. occurrence policies.
  • Tail Coverage: Who pays for extended reporting if the policy ends.

Critical Note: Without tail coverage, you could face liability for past treatments after leaving the job.


5. Termination Clauses

Termination terms dictate how either party can end the agreement. Key details:

  • Notice Period: Typically 60–90 days.
  • With-Cause vs. Without-Cause Termination: Define acceptable reasons for immediate dismissal (e.g., license revocation).

Red Flag: Avoid vague language like “failure to perform duties,” which could be misused.


6. Non-Compete and Restrictive Covenants

Non-compete clauses restrict where you can work post-employment. Key considerations:

  • Geographic Scope: A 10-mile radius is reasonable; 50 miles may be excessive.
  • Duration: 1–2 years is standard.

State Laws Vary: California bans non-competes, while Texas enforces them strictly. Consult a lawyer.


7. Confidentiality and Intellectual Property

Protecting patient data and practice innovations is critical. Ensure the agreement:

  • Complies with HIPAA regulations.
  • Clarifies ownership of research, patents, or medical protocols developed during employment.

Negotiation Strategies for MDs and DOs

1. Consult a Healthcare Attorney

Never sign a contract without legal review. Attorneys specializing in physician agreements can:

  • Identify unfavorable terms.
  • Ensure compliance with Stark Law and Anti-Kickback Statutes.

2. Prioritize Your Needs

Rank negotiation points by importance:

  • Must-Haves: Malpractice tail coverage, fair non-compete terms.
  • Nice-to-Haves: Signing bonus, extra CME funding.

3. Benchmark Compensation

Research salary data from sources like MGMA or AMGA to ensure competitive offers.


4. Push for Clear Metrics

If bonuses are tied to productivity, demand transparent formulas (e.g., $50 per RVU).


5. Limit Liability

Negotiate caps on potential damages for contract breaches.


Common Pitfalls in Physician Employment Agreements

1. Vague Language

Ambiguities in duties or compensation can lead to disputes. Insist on specificity.

2. Ignoring State Laws

Non-competes, licensing, and malpractice rules vary by state. Verify enforceability.

3. Overlooking Restrictive Covenants

A poorly negotiated non-solicitation clause could bar you from contacting former patients.

4. Failing to Plan for Termination

Understand severance terms and what happens to benefits upon exit.

5. Verbal Promises

Get all terms in writing. Oral assurances hold no legal weight.


Final Checklist Before Signing

  • ☑ Reviewed by a healthcare attorney.
  • ☑ Compensation aligns with industry standards.
  • ☑ Malpractice tail coverage addressed.
  • ☑ Non-compete terms reasonable and enforceable.
  • ☑ Termination clauses fair to both parties.

Conclusion

An employment agreement for MDs or DOs is a cornerstone of a successful medical career. By understanding its components, negotiating strategically, and avoiding common traps, physicians can secure contracts that support their professional and financial goals. Always invest in legal counsel to ensure your rights are protected—this isn’t just paperwork; it’s the foundation of your future in medicine.

Also Read: AHCA Exemptions in Florida: Key Issues for Healthcare Providers