If your employment agreement contains any noncompetition provisions that may affect your potential ability to practice within a certain geographic area, this would limit where you can practice after you terminate your employment. Any nonsolicitation provision may affect your ability to contact patients to invite them to follow you to your new location, as well as possibly restricting your ability to solicit practice employees to join you at your new practice. Not all noncompetition and nonsolicitation agreements and provisions are enforceable, so it’s important to have them reviewed by an attorney.
Typically, an employer provides malpractice coverage for physicians during the term of their employment. Upon termination, it’s possible a physician will be personally responsible for the cost of “tail coverage” if the practice has claims-made coverage. Claims-made policies require that both the incident and the resulting claim occur during the coverage period. Therefore, the tail coverage provides insurance for claims that are made after employment is terminated for events that occurred during employment. Tail coverage can be costly, so ideally the employment agreement will address whether the practice or physician-employee will be responsible for acquiring and paying for the coverage.