If I have osteophyte fomations in my knee what do doctors do for that?

He will help to. Take care of them, possibly by cleaning the joint arthoscopicaly.
Osteophyte. Osteophyte is a fancy word for bone spur. Osteophytes are a result of abnormal mechanics. Osteophyte formation is an early sign of arthritic changes. The osteophytes are not your problem, they are a consequence from your problem, abnormal biomechanics. Pain control and activity modification is key, but more than likely you will require a total knee replacement in the distant future.
Many options. Depending on the severity some treatment options may include rest, ice, compression and elevation, bracing, injection, pain medication, anti-inflammatory medication, physical therapy, and possible arthroscopic or open surgery. Have it evaluated by a professional and get the appropriate care.