Physicians: Read Before You Sign That Employment Agreement
As residencies and fellowships near their end this summer, many physicians are now reviewing their first job offers. While this is an exciting time, it’s also one of the most important career decisions you’ll make. Employers may refer to their contracts as “standard,” but that doesn’t mean there aren’t areas that are open to discussion.
A physician employment agreement can shape your compensation, work-life balance, and career trajectory for years to come. Before signing, take the time to understand the terms and whether negotiation is necessary.
Key Areas to Review in Your Physician Employment Agreement
1. Salary & Compensation
Your compensation should be competitive and in line with market benchmarks. Beyond base salary, consider:
- Bonuses – Are there sign-on or productivity bonuses? Are they tied to reasonable metrics?
- Call Coverage – How often will you be on call, and is additional pay provided?
- CME Allowance – Does your contract cover continuing medical education expenses?
2. Restrictive Covenants
Many physician contracts include non-compete clauses that can limit where you can practice if you leave. Questions to ask:
- How long does the restriction last?
- What is the geographic scope?
- Will this limit future job opportunities in your preferred location?
3. Malpractice & Tail Coverage
Malpractice insurance is critical, but who pays for tail coverage when you leave? This is often an overlooked but costly provision—tail coverage can cost up to one-third of a year’s salary. If your employer doesn’t cover it, negotiating this point could save you a significant financial burden.
4. Termination & Due Process
Physicians should understand the termination provisions in their contracts:
- Can you be terminated without cause, and if so, how much notice is required?
- What rights do you have if there is a dispute over your performance or quality of care?
- Does the contract waive your ability to challenge termination through a fair process?
5. Start Date & Credentialing
Delays in licensing, hospital privileges, and payer enrollment can impact your ability to start working. Your contract should account for these factors so you’re not left without income due to administrative delays.
Expert Contract Review with Industry Knowledge
Ishra Solieman is an experienced healthcare attorney with over 12 years of experience representing individual healthcare providers, as well as large hospital systems and medical groups. With deep industry knowledge, she can provide expert contract review, ensuring you fully understand the terms and negotiate a fair agreement that protects your career and financial future.
Why You Should Have an Attorney Review Your Contract
Hospitals and employers draft contracts to protect their interests—physicians should do the same. An attorney experienced in physician employment agreements can help:
- Identify problematic contract terms that could impact your career
- Negotiate better compensation, benefits, and protections
- Ensure your contract aligns with your long-term professional goals
If you’re currently reviewing an offer and have questions, I’m happy to help. Click here to schedule a contract review and ensure your agreement sets you up for success.