What is Physician Employment Contract Negotiation?
A physician employment contract is a legal agreement between a physician and a medical practice where they will work. It has many key terms that you can negotiate to get a more favorable working arrangement.
If you’re wondering how to negotiate a physician employment contract, read the rest of this article to learn key terms to discuss, how to negotiate effectively, and how a qualified lawyer can assist you with the process.
What are Common Key Terms to Negotiate in a Physician Employment Contract?
There are various components physicians should negotiate in their employment contract. These include the following:
- Salary and compensation. The agreement must clarify what the physician will earn and how they’ll benefit from the job role. The physician might want to negotiate this if compensation isn’t favorable.
- Termination. The agreement should outline how parties can end the agreement should this be required. It needs to include fair and reasonable termination provisions.
- Work scope. What’s required of the physician in the job role is an important part of the agreement. Physicians might want to discuss expectations to ensure they can align their goals with those of the medical facility.
- Non-compete clauses. These clauses can restrict a physician from taking certain career opportunities after the contract ends. A physician will want to ensure that they’re reasonable.
- Tail insurance. Establishing that the employer pays the physician’s tail insurance can be a favorable benefit included in the job offer.
What are Tips for Negotiating a Physician Employment Contract?
Beyond the key terms in a physician employment contract, there are important considerations and other aspects of the working relationship to negotiate.
Consider Pre-Employment Conditions
If the physician has to meet certain conditions before employment begins, this should be discussed between parties as they could create delays. Get them in writing in the physician employment contract for clarity.
Know Your Goals
Before entering negotiations, physicians should think about what their biggest priorities are so that they can focus on these during discussions. While having clarity about your objectives, you can also discuss any concerns you have about the contract. This will help you to evaluate exactly what needs to be negotiated.
Consult with Other Physicians
If you’re unsure of how to navigate a physician employment contract, it’s advisable to chat to other physicians in the organization so that you can assess what they’ve managed to negotiate for their contracts. This will provide clarity on what’s achievable.
Try to Reduce Non-Compete Restrictions
As a physician, harsh or broad non-compete restrictions can hamper future career opportunities after contract termination. Try to negotiate fewer restrictions to keep them reasonable and fair. Consulting a professional lawyer can help you with ensuring the restrictions are legally valid and don’t limit you too much.
Think About Notice Periods
Should the physician wish to leave their job, there’s usually a notice period required. Make sure that the timeline is fair and gives the physical flexibility if they want to take a new career opportunity.
Discuss Salary Terms
Take time to check that the salary is aligned with your specialty, experience, and market rates for similar physician roles in your location. This helps you to evaluate if you’re receiving fair market compensation.
Seek Clarity About Malpractice Insurance
Malpractice insurance can include nose or tail coverage, both of which are important to seek clarity about. It’s common for a physician’s previous employer to pay nose coverage as it covers any claims while the physician was in their previous job role. New employers might cover tail coverage, so physicians should negotiate for this.
It’s worth checking if they do and trying to negotiate both insurance coverage types to increase your benefits.
How Does a Lawyer Help You with Physician Employment Contract Negotiation?
It’s not always easy to know how to negotiate physician employment contracts, which is why hiring a lawyer for guidance is advisable. Here’s what a lawyer can do before, after, and during negotiations.
- They’ll review your physician employment contract before negotiations so that you can discuss any unfavorable terms.
- They’ll consider the best negotiation strategy for your specific goal, such as if you want to push for a better salary. They’ll consider call pay, retention bonuses, and other components to reflect your value and experience.
- They’ll ensure that the physician employment contract clearly explains all elements, such as retirement benefits, health insurance, and licensing fees.
- They’ll make changes to the agreement if it needs to be re-drafted, giving you a mutually-favorable and fair contract.
- They’ll address liability concerns, such as indemnification obligations.
- They’ll consider your goals as a physician to negotiate terms that are aligned with your value, experience, and priorities.
Where to Find a Lawyer for Physician Employment Contract Negotiation
If you need to hire a lawyer to assist you through the physician employment contract negotiation process, you should make use of an online legal platform such as ContractsCounsel. As one of the largest online legal marketplaces that gives you access to a curated network of vetted lawyers, it makes searching for and hiring a lawyer an easy process.
When requesting that a lawyer on the platform reviews your physician employment contract prior to your negotiations, giving you clarity about what to discuss with your employer, here are the easy steps to follow.
- Visit the ContractsCounsel marketplace, where you can post your project for free.
- Wait for lawyer bids. You’ll receive multiple bids from lawyers directly on the platform who can assist you.
- Review lawyer profiles. Once you receive the lawyer bids, you should review the lawyers' profiles. There’s lots of info on the platform to help you choose the best lawyer, such as their location, client ratings, years of experience, and field of expertise.
- Connect with a lawyer you think is best suited to your requirements and hire them to review your physician employment agreement for a flat fee.
