Receiving a job offer is always exciting, but for physicians, job offers can be a bit more complicated.
Why?
Because they almost always come with an employment contract.
Whether you’re well into your medical career or about to start your first job after residency, here are five things to keep in mind when reviewing a physician employment contract.
1. Salary Is Only One Part of Your Compensation
Along with your base salary, an employment contract should include all forms of compensation you are to receive, including any bonuses, benefits, or extra perks that come with the job.
Your contract should detail every aspect of your compensation package, including:
- All insurance benefits, including health, dental, and vision benefits
- Vacation days, sick days, and PTO
- On-call pay rates if they differ from standard rates
- Signing bonuses and when you’ll receive them
- Productivity incentives if applicable
In addition to salary, incentives, and bonuses, contracts should also detail how you’ll earn that compensation. In some cases salary is based on productivity and how many patients you see. In other cases it’s based on how many hours you work. Sometimes, employers offer a combination of both.
2. Verbal Promises Don’t Count
If you received any type of verbal promise during the interview process, be sure that it’s mentioned in your contract. If it isn’t detailed in the contract document, it doesn’t count.
Did the employer offer to pay for relocation expenses?
If it’s not mentioned in the contract, don’t expect to see that money.
Did the employer say that you’ll have the option to become a partner in the practice?
If so, make sure an ownership or partnership agreement exists and that it details the time frame in which you can buy in and what the purchase price will be.
3. You Could Have Legal Obligations When Your Contract Ends
Every contract includes a termination clause that states whether or not the employer can terminate you without cause or if there must be a justified reason for letting you go. The termination clause should also detail what will happen if you decide to end your contract early.
For example, if you leave the job before your contract is up, there could be legal ramifications. Employers expect you to stay the duration of your contract, so ending your contract early could require you to pay back signing bonuses, relocation expenses, or student loan repayments that your employer made.
It’s also important to check the contract’s statement on tail insurance. Depending on the employer, you may have to pay for tail insurance, even if you work successfully through the end of your contract.
4. Your Contract May Affect Future Work Opportunities
Beware of restrictive covenants. Most employment contracts include them, and how they’re phrased can have a significant impact on where you can work after your current contract ends.
One of the most common types of restrictive covenants is the non-compete clause. This restricts you from working within an X mile radius of your current employer for X months or years after employment.
Failure to pay attention to non-compete clauses could result in having to work a great distance away or even relocating for your next job.
5. Contracts Are Negotiable
No matter how much you think you know about employment contracts, you should never sign one without having it reviewed by a contract lawyer first.
Contract review lawyers know exactly what employment contracts should and shouldn’t include. They will check to make sure that your salary and benefits package is equitable, that your obligations and duties are clearly spelled out, and that your termination clauses and restrictive covenants are fair.
Contract review lawyers can also help you negotiate a better contract to get you a bigger salary, increase your benefits package, or minimize your post-employment obligations regarding tail insurance and non-compete agreements.
Checkout this guide from Physicians Thrive to learn more about physician contract review and why it’s so important.
In Conclusion
No matter how excited you may be to sign a new employment contract, take the time to have a thorough contract review before signing it. That is the single best way to protect yourself, your income, and the future of your career.
