Appendix 3: Physician
Employment Agreement
SAMPLE Hospital-Affiliated Practice/Physician
(All parties and names are intended to be fictitious.)
This Agreement is made and entered into as of this day of , 2009, by and between
Jones Corporation, a Colorado nonprofit corporation (hereinafter the “Employer”
or the “Corporation”) and John Smith, DO (hereinafter the “Physician”) of Denver,
Colorado, and is effective August 1st, 1999 (the “Effective Date”).
WHEREAS, Employer agrees to and does hereby employ Physician in the specialty
of Internal Medicine; and
WHEREAS, Physician agrees to become and does become, with his/her signing of
this Agreement, a full-time employee of Employer; and
WHEREAS, Physician shall render professional services for which he/she is quali-
fied on behalf of Employer and shall perform such other duties on behalf of
Employer as may be assigned by the Manager of Clinical Services or a Corporation
NOW THEREFORE, in consideration of this covenants set forth herein, the parties
agree as follows:
1. Physician’s full time and effort shall be devoted to the performance of his/
her duties for Employer pursuant to this Agreement. Physician will spend,
on the average, not less than 40 hours per week carrying out his/her duties
which generally include providing professional services and related activi-
ties in the office and hospital setting, and being actively involved in cor-
porate, departmental, and medical staff meetings and activities. From time
to time the Physician may be required to work longer than the foregoing
stated hours.
2. Physician will spend on average not less than 30 hours per week seeing
patients in the office.
3. Physician shall not, except as otherwise expressly authorized by Employer
in advance, undertake any professional obligations of any kind, medical,
administrative, executive, or otherwise, for any entity except Employer.
150 Appendix 3
4. Employer, in consultation with Physician, shall set Physician’s work sched-
ule and the sites at which professional services are to be rendered by
5. Physician shall be available on an on-call basis in accordance with Employer’s
standard on-call policies and will arrange coverage for scheduled time off
with other physicians employed by Corporation.
6. Throughout the term hereof, Physician shall:
a. Maintain membership on the medical staff of, and full clinical and
admitting privileges at Jones Hospital.
b. Should, for any reason, Physician cease to be a member of the medical
staff of Jones Hospital, or should, for any reason, Physician’s clinical
and/or admitting privileges expire without renewal or be suspended
or revoked, or Physicians license to practice medicine in the State of
Colorado be suspended, revoked, or canceled, then, effective as of the
date Physician ceases to be a member of the medical staff or as of the
date of expiration, suspension, revocation, or cancellation of such clini-
cal and/or admitting privileges or license.
7. Employer may terminate this Agreement if Physicians clinical and/or
admitting privileges at Jones Hospital are restricted or made subject
to supervision in accordance with the applicable medical staff bylaws,
rules, and regulations or comparable rules, regulations, or policies appli-
cable to the practices of physicians.
8. Physician may continue to render services hereunder only in accor-
dance with such restriction or supervision. If Employer determines in its
sole reasonable discretion that imposition of such restriction or supervi-
sion of Physician’s privileges unreasonably interferes with the performance
of Physician’s duties under this Agreement, Employer may terminate this
Agreement effective immediately by written notice to Physician.
9. Throughout the term of this Agreement, Physician agrees to maintain his/
her clinical skills as evidenced by participating in appropriate continuing
medical education activities and maintaining good standing in professional
10. Physician further agrees with all applicable federal and state statutes and
regulations and compliance policies and all Joint Commission accreditation
standards applicable to Corporation and/or to Jones Hospital.
1. Employer shall compensate Physician for the services rendered pursuant to
this Agreement at an annual salary of $115,000.00 payable in equal biweekly
installments and subject to all tax withholding required by law, plus a five
thousand dollar ($5,000.00) sign-on bonus payable on the Effective Date.
2. Employer shall provide to Physician any fringe benefits in accordance with
Employer’s flex benefit program as it may exist from time to time.
a. Physician shall be entitled to Combined Time Off (CTO) accruable at
the rate of 4.6 hours per pay period in addition to the benefits described
in Exhibit A, attached hereto and incorporated herein by reference.
(Combined Time Off may be carried forward per Corporation policy a
copy of which will be provided to Employee on the Effective Date.)

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