AMA Offers New Resource to Help Physicians with Group Practice Employment Negotiations

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For immediate release:
July 31, 2014

CHICAGO – As part of its commitment to help physicians navigate evolving issues in medicine, the American Medical Association (AMA) today released a new resource to help physicians negotiate business and legal issues common to group practice employment contracts.

The Annotated Model Physician-Group Practice Employment Agreement is intended to meet increased physician interest in employed positions. The handbook offers prospective employees and practice owners a valuable primer when preparing to negotiate an employment agreement, including thorough descriptions of common contract terms, in-depth explanations of business and legal consequences, negotiation tips and sample contract provisions.

"Physicians often need to navigate complex issues when negotiating agreements with their current or prospective employer and this new AMA resource will ensure physician interests can be fully taken into account in these discussions," said AMA President Robert M. Wah, M.D. "By helping physicians successfully navigate this choice, the AMA hopes to establish sustainable medical practices that result in optimal health outcomes for patients and greater professional satisfaction for physicians."

Physician interest in employed positions is expected to continue with more physicians entering into employment and other contractual relationships with group practices, hospitals, and health systems. According to a recent AMA study, nearly 42 percent of patient care physicians are in employed positions.

Additional AMA resources on employment and contractual relationships include:

  • Principles for Physician Employment - A framework to help guide physicians and their employers as they collaborate on providing safe, high-quality and cost-effective patient care.

AMA members can obtain the new handbook on group practice employment contracts free of charge. Non-members may purchase the handbook through the AMA Store.

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