Physicians Urged to Scrutinize Indemnification Clauses in Contracts
Event summary
- The Journal of American Physicians and Surgeons published a warning about indemnification clauses in physician contracts on June 3, 2026.
- Dr. Jeffrey Segal, founder of Medical Justice, highlighted that such clauses can lead to personal bankruptcy for physicians.
- Segal advised physicians to demand proportional responsibility and ensure obligations are triggered by findings, not mere allegations.
- The warning was issued in the summer issue of the Journal of American Physicians and Surgeons, published by the Association of American Physicians and Surgeons (AAPS).
The big picture
The warning underscores the power imbalance in physician-hospital contracts, highlighting the need for greater scrutiny of legal clauses that can disproportionately impact physicians. This advisory comes amid broader industry discussions about physician autonomy and the financial risks associated with employment contracts. The scale of this issue is significant, given the prevalence of indemnification clauses in standard physician contracts.
What we're watching
- Contract Negotiation Power
- How physicians will leverage this warning to negotiate better contract terms with hospitals and multispecialty groups.
- Legal Risk Mitigation
- Whether hospitals and medical groups will revise their indemnification clauses in response to this advisory.
- Physician Employment Trends
- The pace at which physicians will seek legal counsel before signing employment contracts.