👩⚕️ How to Structure Employment Agreements for Healthcare Staff in Arizona
Hiring a new provider, therapist, nurse, or admin staff? A handshake and job offer letter aren’t enough. In healthcare, a well-drafted employment agreement isn’t just good practice—it’s a legal and compliance necessity.
Here’s what Arizona healthcare employers need to know when structuring employment agreements that protect your practice, support your staff, and reduce risk.
Why Employment Agreements Matter in Healthcare
Clarify roles and expectations
Protect your confidential information and patient data
Define payment, scheduling, and termination terms
Reduce risk of wage disputes or misclassification
Ensure compliance with HIPAA, Stark Law, and state labor laws
📌 Especially for licensed professionals, a custom-tailored agreement is far safer than a boilerplate template.
1. Job Duties & Scope of Practice
Spell out:
The position title and responsibilities
Expected schedule (days, hours, on-call)
Reporting structure and supervision (particularly for NPs, PAs, and residents)
Any limitations due to licensure, scope, or credentialing
📌 Clear role definitions reduce confusion and help ensure clinical compliance.
2. Compensation & Benefits
Include:
Salary or hourly wage (and how it’s calculated)
Overtime or bonus structure (RVUs, collections, etc.)
Benefits (health, dental, retirement, CME, malpractice insurance)
Timing of pay and reimbursement policies
📌 Comp plans for providers should be reviewed for compliance with Stark Law and fair market value standards.
3. Restrictive Covenants: Non-Compete, Non-Solicit, Non-Disparagement
Restrictive covenants are enforceable in Arizona—but only if reasonable in scope, geography, and duration.
Typical healthcare terms include:
Non-compete: 6–24 months, often limited to 5–10 miles
Non-solicit: Restricts poaching of staff or patients
Non-disparagement: Protects your business reputation
📌 Use tailored restrictions that balance enforceability with business protection.
4. Confidentiality & HIPAA Compliance
Protect:
PHI and patient data
Business trade secrets
Referral relationships, payor lists, and pricing strategies
Include:
A strong confidentiality clause
HIPAA language acknowledging staff obligations
Agreement to return all information at termination
📌 This helps safeguard both legal compliance and competitive advantage.
5. Termination Provisions
Every agreement should address:
At-will or fixed-term employment
“For cause” vs. “without cause” termination
Notice requirements
Severance terms (if any)
📌 Also clarify who is responsible for patient notification or transition duties upon provider departure.
Bonus Clauses to Consider
Malpractice insurance coverage (claims vs. occurrence)
Credentialing cooperation and licensure maintenance
Dispute resolution clause (e.g., arbitration vs. court)
Reimbursement for CME, licensing, DEA registration, etc.
Final Thoughts
An employment agreement in healthcare should do more than just list pay and time off. It’s your opportunity to set clear expectations, build loyalty, and protect your practice legally and financially.
Need help drafting or reviewing a provider agreement? I work with Arizona practices to build fair, compliant employment contracts that avoid disputes and support business growth.
Hurley Law Group
Employment & Compliance Counsel for Arizona Healthcare Providers
📞 308-383-1867
🌐 hurleylawgroup.com
✉️ eric@hurleylawgroup.com