Physician Employment Agreement Compensation Clause: Revenues-Minus-Expenses

Summary

This clause, adapted from Health Care Law: A Practical Guide, is meant to be used in a physician employment agreement. It uses a compensation model that reconciles physician productivity against the physician's efficiencies in associated cost collections. This clause includes practical guidance and drafting notes. For a full listing of related content on licensing of healthcare professionals and facilities, see the Healthcare Transactions, Licensing, and Regulation Resource Kit. For more information and resources on physician compensation and healthcare provider contracting considerations, see Physician Compensation Overview, Physician-Hospital Contracts, Physician and Healthcare Practice Acquisitions: Contractual Considerations, Physician and Healthcare Practice Acquisitions: Regulatory Considerations, Physician Practice and Healthcare Transaction Goals Checklist, and Critical Legal and Regulatory Issues Impacting Healthcare Provider Transactions. For template physician agreements, see Physician Employment Agreement and Physician Recruitment Agreement. To compare state laws on physician licensing requirements, see the Healthcare State Law Comparison Tool.