When joining a private practice, a physician may encounter a recruitment agreement, which is a document separate from the employment contract.

New or smaller practices may not have funds immediately available to hire a physician, particularly a highly-paid specialist. Since a nearby hospital system will value services and procedures that the newly-hired physician performs, they effectively loan money to a practice in order to pay the physician. This is all accomplished through a recruitment agreement.

The physician who signs the recruitment agreement then has an obligation to both the private practice and the hospital system. They will often have to practice in the same geographic location for a certain number of years, or risk repaying some of the compensation originally offered by the recruitment agreement.

Physician contract attorneys Lauren Kaufman and Kyle Claussen explain the purpose of recruitment agreements, the obligations they place on physicians, how they interact with employment contracts, and more.

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About The Review Podcast by Resolve

The business of medicine is constantly changing. The Review Podcast by Resolve discusses current contract issues for physicians, compensation trends and tips for a successful career. Every physician’s contract and career is different, and nothing in this episode  should be considered legal advice. If you have specific questions about your career, please consult with an attorney.

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