If you’re ready to take the next step in your career, you need to know the ins and outs of physician contracts. Knowing what to expect in these agreements is only the first step—you also have to learn how to spot red flags and potentially negotiate a better offer.
Not sure how to get started? Get ready to navigate physician employment contracts with this comprehensive guide.
What Should Be in a Physician Employment Agreement?
Before signing, read the physician employment contract provided by the hiring organization thoroughly. Beyond the jargon and legalese, there are several key things to look for, including these top components:
Job Details and Duties
Although you might have a general understanding of your future job, it still needs a detailed description in the contract. What specific job are you hired for, and what are your responsibilities?
The document should explain the type of work, time requirements, location and salary.
Employment Duration
An employment agreement should also have a start and end date. The contract length may vary depending on the position, but your employer still needs to include this information.
There should also be information about contract renewal and grounds for termination.
Outside Work
A contract should also define what types of work you’re allowed to do outside of your employment. For example, you should be able to engage in other opportunities that don’t conflict with your employer’s interests.
Having this information in writing allows you to continue your current outside work or seek new opportunities, as long as it aligns with the agreement.
Non-Compete Clauses
Non-competes have long been a topic of discussion in the workplace, and you may see one in your contract. Despite a recent effort by the Federal Trade Commission to ban non-competes, they are still legal in several states.
If the agreement includes a non-compete clause, ensure it states the restrictions and what makes it enforceable.
Benefits
The contract should outline the benefits package you’ll receive, besides your salary, for working with the company. These benefits may include:
- Paid time off
- Continuing medical education (CME) allowances
- Retirement plans
- Health insurance
- Professional organization dues or membership fees
- Student loan relief
- Malpractice insurance
Ensure that each item the employer offers as part of their benefits package is appropriate. For example, the CME stipend section must explain the amount they provide yearly and the expenses it covers.
Red Flags in Professional Services Agreements
When reviewing a contract, there are certain factors to look out for that may indicate you need to negotiate or move on from the opportunity. Concerns you may need to address include:
Clinical Care Time Requirements
While your contract should define expectations for face-to-face patient care, be mindful of any that require 40 hours. These time restraints do not include time for administrative work.
Termination Expectations
Your agreement should state the grounds for termination and outline how the employer will notify you. Be mindful of wording that allows them to speed up termination when you give notice.
Repayment Requirements
Often, you will need to repay certain parts of incentives and benefits. That said, avoid contracts that require you to repay student loan coverage, bonuses and relocation expenses in full.
This concern is especially vital if the reason for termination is not your fault.
How to Negotiate Physician Contracts
Whether you notice vague language or want a better offer, it’s time to negotiate. Although it may seem off-putting at first, most employers expect it, so it’s an acceptable way to achieve a fair agreement.
Here are some tips for negotiating your contract:
- Determine what you want changed: What are your highest priority changes? For example, you may want a better schedule, increased CME funding or more time off.
- Consult a professional: Hire a lawyer or advisor to help you understand the logistics of your contract, tax obligations and negotiation options.
- Put changes in writing: If the employer agrees to a change, get it in writing as proof.
- Prepare to ask questions: While you can have a legal expert review the agreement and suggest changes, you should also come to the negotiations with questions and explanations.
- Know when to walk away: Always aim for more pros than cons in a contract. If the employer won’t budge on your top priorities and dealbreakers, it may be time to seek new opportunities.
Contract negotiation helps you find a job that aligns with your needs and interests, helping to take your career to new levels. Remember that it’s normal not to get everything you want, but as long as you’re happy with the result, you’re ready to sign.
Use Your CME Allowance to Stay Educated
While there are many aspects to review in a physician employment contract, ensure CME funding is included. After all, CME conferences help you stay updated on industry developments and practice your skills, making you a better doctor.