Physician Letter of Intent

Physicians move from medical institutions to enhance their careers, change cities and follow their dreams just like everyone else. Medical institutions are constantly looking for new talent to replace physicians who are moving, retiring, and changing careers. Graduates from medical schools are focused on establishing their careers in a variety of medical specialties. The physician’s letter of intent is a professional document covering the intent by a medical institution to hire a physician based on terms discussed during an interview.

It is not a contract. It does cover general terms which were discussed during an interview process. The physician letter of intent recognizes that a legal contract will be formalized covering all of the legal details pertinent to the position after both parties have signed the physician letter of intent. Once the physician has signed the letter, he or she is indicating interest in finalizing negotiations with the medical institution.

What is a Physician Letter of Intent?

A physician letter of intent is prepared by the hiring party and delivered to a physician indicating the hiring party’s interest in hiring the physician. The physician letter of intent is often sent after a successful interview has taken place and both parties have indicated an interest in developing a contractual relationship. The physician letter of intent also includes the primary terms of the contract, which it is understood will be further negotiated.

The hiring group is looking for a good-faith commitment by the physician to proceed with negotiations.

While the letter will request the physician sign the letter of intent, many attorneys suggest their client do not sign and return the letter if the essential terms do not meet their client’s needs or do not reflect discussions during the interview.

If both parties sign the letter, it suggests that both parties are in general agreement and the details of the contract remain to be sorted out. The physician is also indicating that they wish to advance discussions concerning advancing their professional business and medical relationship.

If the terms contained in the physician letter of intent are favorable to both parties, they can then begin drafting the employment contract. Once a physician letter of intent has been signed key terms such as salary and contract length may be difficult to negotiate so make sure these areas meet the terms discussed in the interview.

Is a Physician Letter of Intent Binding?

Most states provide the opportunity for negotiation after the physician letter of intent has been signed. However, before signing, confirm the legal status of the letter in the state of the hiring party. There are generally accepted provisions in the letter that each party must adhere to. For example, these could include:

  • Negotiations will be conducted in good faith
  • Each party is responsible to pay their own legal fee’s
  • Discussions and negotiations must remain confidential
  • Negotiations may have a defined end date

Physician Letter of Intent — Format

(Physicians Name)

(Full address and)

(Email)

(Phone number)

(Date)

(Your Name)

(Title, Company or Institution)

(Full address, and)

(Email)

(Phone number)

Dear (Physicians Name)

Body – Paragraph 1 – Introduction, general terms

Body – Paragraph 2 – Term

Body – Paragraph 3 – Working Hours

Body – Paragraph 4 – Compensation

Body – Paragraph 5 – Benefits

Body – Paragraph 6 – Insurance – Liability, Health, Life, Long Term Disability

Body – Paragraph 7 – Professional Meetings

Body – Paragraph 8 – Confidentiality

Body – Paragraph 9 – Exclusivity

Body – Paragraph 10 – Non-Compete

Body – Paragraph 11 – Additional Provisions

Body – Paragraph 12 – Good Faith Negotiations

Closing – Sincerely

(Employer Name)

(Signature)

(Printed Name)

Agreement by the physician

(Physician Name)

(Date)

(Physician Signature)


Sample Physician Letter of Intent

(Physicians Name)

(Full address and)

(Email)

(Phone number)

(Date)

(Your Name)

(Title, Company or Institution)

(Full address, and)

(Email)

(Phone number)

Dear (Physicians Name)

This letter of intent is to continue the negotiations between (Institution) and Dr. ( Name of doctor). The basic terms of employment are covered. This letter of intent does not constitute a formal contract, nor is it binding on either party. It covers the terms for negotiating an employment agreement to be completed in good faith. Neither party is legally obliged to enter into an employment agreement, however, it provides the terms for discussion and contract negotiations.

Term – the term of the contract shall be for (years) and (months) unless both parties are willing to extend the contract in writing. Either party (Shall) or (Shall not) have the right to terminate the employment agreement. {X} days advance notice must be provided to terminate the contract to the other party if the right to terminate is in force.

Working Hours – Standard working days per week will be (X) and (Y) hours per day. One shift per month is required on weekends, a schedule to be mutually agreed to.

Compensation – Base salary as per this agreement will be ($___) per year. A signing bonus of ($___) is included upon the completion of an Employment Contract. Relocation costs are to be (Included)(Not Included) up to a maximum of ($____). Receipts identifying relocation expenses are to be submitted to the employer. Associated costs for temporary housing (Are)(Are not) included up to an amount of ($___).

Benefits – (X) weeks of paid vacation are included. The physician can select either,

  • 401(k) retirement plan
  • Profit-sharing agreement
  • Other benefit as listed __

Insurance – insurance coverage for the following are included:

Liability – Professional liability insurance coverage is provided by the employer for services provided by the physician for patient care that is within the scope of the employment contract and the physician’s duties. Liability covers will be no less than ($_____) per occurrence and ($____) in aggregate

Health – the physician and their family will be covered for medical and hospitalization in full.

Dental – Coverage is provided for the physician and their family (In Full) or as outlined in a separate dental coverage plan.

Life – Term life insurance coverage ($___) and accidental death and dismemberment insurance is provided with a limit of ($___)

Long Term Disability – After (X) days waiting period, the physician shall be entitled to (%) of their monthly salary during any period of sick leave, including full benefits for the physician and their family.

Professional Meetings – the physician is entitled to attend education seminars, medical seminars, and professional meetings necessary to retain their license and board certification. Courses and seminars to improve and maintain technical skills are also entitled. The physician will be provided with a budget of ($____) for professional meetings and certification/training courses and seminars.

Confidentiality – all contract details and negotiations concerning the employment contract are confidential and not disclosed to other people, except for advisors, required 3rd parties, and internal staff of the employer and the physician.

Exclusivity – once this letter of intent is signed by both parties, they agree to not negotiate with or begin discussions with other parties except for previous existing agreements.

Non-Compete – during the term of this agreement and for (X) years after this agreement is terminated or expires, the physician agrees not to compete with, enter a business relationship, or join a health care provider or health system that is in direct competition with (Name of Employer). The physician may establish a private medical practice and not in conflict with this agreement.

Additional Provisions – (Add as required)

Good Faith Negotiations – the parties signing this agreement are entering into negotiations in good faith to reach an agreement that will be binding on both parties.

If the terms described in this letter of intent are agreeable, and you desire to complete negotiations, please sign the document where indicated and return a copy of this letter of intent.

Sincerely

(Employer Name)

(Signature)

(Printed Name)

Agreement by the physician

(Physician Name)

(Date)

(Physician Signature)


Physician Letter of Intent (Word Template)

Physician Letter of Intent

What does a Physician do?

A or medical doctor or physician is a healthcare professional that diagnoses and treats diseases and injuries. The medical profession is broadly divided into general doctors who treat general illnesses, and specialists who specialize in a specific area of medicine. The education required to become a physician is a long one since the medical community requires a bachelor’s degree, a degree from a medical school, and time in a residency program. All US states require physicians to be licensed with no exception. Tasks performed by a physician vary a great deal, depending on the area of specialization and focus of each practice; however, the tasks performed by a doctor can include any of the following:

  • Diagnosing injuries and illnesses
  • Performing regular medical checkups
  • Prescribing, developing treatment plans and administering medication
  • Referring patients to specialists
  • Maintaining detailed records of each patient’s medical history
  • Managing healthcare teams of nurses and physician assistants
  • Ordering tests for patients performed by nurses or other professionals

Completing surgical procedures to treat injuries and diseases

How Much Does a Physician Make?

The salary of a physician depends on many factors, several are:

  • Number of years of experience
  • Specialization
  • Management role in the organization

The average salary of a physician is $208,000 / year based on information provided by the Bureau of Labor Statistics.

What is a Physician’s Assistant?

A physician’s assistant, (PA), is a healthcare professional practicing medicine supervised by a physician. The tasks of a PA are all generally similar to those of a physician. The PA is required to provide therapeutic and diagnostic medical care to patients in almost all areas of medicine. A PA can prescribe medication. They can create patient treatment plans independent of their physician supervisor. The major difference between PA’s and MD’s is the degree of autonomy of each profession; the degree of supervision required and the responsibilities of both PA’s and MD’s vary by state.

How Much Does a Physician Assistant Make?

The amount a PA makes varies from state to state, the amount of experience, the degree of specialization, and the location. In Florida, the average annual salary is approximately $104,000 while in California the average annual salary is approximately $122,000

Key-points

While the physician letter of intent is nonbinding, the preparation and execution of the letter of intent represent a serious step towards hiring a physician. Both parties have agreed to the broad terms of the contract and once signed it is time to complete the final negotiations leading to an employment contract.

If the physician letter of intent received by the physician does not represent the discussions held during interviews, many attorneys would recommend that the physician not sign the letter of intent, until the conflicting issues are resolved.

While the physician letter of intent may look and feel like a job offer, it is actually a broad template to begin negotiations and develop the detailed contract. Only once the contract is finalized and signed by both parties can it be considered binding on both parties. The physician’s letter of intent does indicate that the hiring organization considers the receiving physician as their top candidate and wishes to proceed towards an employment contract.

Related Posts