When physicians accept an employment offer, many focus primarily on salary and title, leaving critical contract terms under-scrutinized. Even well-intentioned employers may include terms unfavorable to the physician’s autonomy or financial future. That’s why many doctors engage a physician contract lawyer to spot hidden risks and suggest improvements. Below are frequent mistakes and practical suggestions to avoid them.
1. Overlooking the Fine Print on Work Obligations
Employers often describe duties vaguely — “hospitalist coverage as needed,” “on call,” or “clinic hours.” If the contract doesn’t precisely match what was promised in interviews, the physician may be stuck with more work than expected. Always insist on language that mirrors the verbal commitments regarding time off, call schedule, clinic location, and protected nonclinical time. Request clarity and avoid ambiguous terms.
2. Misunderstanding Compensation Models
Many doctors assume “salary” is all that matters. But physician compensation often involves multiple components: a base salary, productivity incentives (wRVU or volume metrics), bonuses, and sometimes benefits tied to collections or P&L. Without clear language on how each component is calculated and triggered, doctors may be shortchanged. Ask for detailed definitions and sample calculations in writing. Ensure that benchmarks, caps, and clawback provisions (if any) are spelled out.
3. Ignoring Exit Strategy and Termination Clauses
All contracts end someday. If you don’t negotiate terms for exit, you could be trapped in unfavorable obligations. Contracts commonly include “without cause” or “for cause” termination language, notice periods, and sometimes post-termination obligations. Negotiate notice periods of 90 to 180 days (or more, if appropriate), and define what happens on termination — for example, your duty to stay on for “transition,” or obligations related to noncompetes or restrictive covenants. Insist on clarity around what constitutes “cause” and whether termination without cause is allowed.
4. Accepting Overly Broad Noncompete or Restrictive Clauses
Some agreements impose noncompetes that limit your ability to move, even after fair years of service. Doctors may inadvertently surrender flexibility. Make sure any noncompete or non-solicit clause is reasonable in geography, duration, and specialty. Push back on terms that unduly restrict your ability to change employers or start an independent practice. Also be aware whether the contract imposes a “clawback” of certain benefits if you leave prematurely.
5. Neglecting Malpractice Tail or Liability Provisions
Often, a contract offers malpractice coverage while you are employed, but is silent on what happens after you leave. If the employer does not cover your tail insurance (covering claims filed post‐employment), you might incur massive costs. Make sure the contract explicitly states who bears responsibility for tail coverage in termination or resignation scenarios.
6. Commingling Duties Between Clinical and Administrative Tasks Without Compensation
Some contracts expect physicians to take on administrative or leadership roles, committee work, or teaching without separate pay. If these additional tasks are not compensated or clearly defined, they can erode your time and income. Request addenda or compensation for extra duties, or ensure that nonclinical expectations are limited and manageable.
7. Failing to Benchmark and Use Comparative Data
A physician may just accept the offered terms because they seem “good enough” without comparing to the market. That’s a mistake. Use compensation data and benchmarks (national, regional, specialty) to evaluate whether the offer is fair. Ask the employer for transparency on how compensation compares to peers, or bring your own data points. Having comparative data strengthens your negotiation position.
8. Inadequate Recordkeeping and Documentation
If disagreements arise later, being unable to prove what was promised or performed undermines your claim. Keep all offer letters, email exchanges, billing reports, productivity statements, and documentation of employer representations. Insist that the final contract version reflect all negotiated changes, and avoid side letters or verbal agreements not confirmed in writing.
Conclusion
Doctors entering employment must recognize that an employment agreement is not just a formality — it’s a roadmap for your career, obligations, compensation, and mobility. By avoiding these common mistakes — from vague work obligations, unclear compensation, weak exit terms, overbroad noncompetes, omission of tail coverage, uncompensated duties, lack of benchmarking, to poor documentation — you put yourself in a stronger position. Even a 500- to 600-word preparation of “red flags” can guide a more confident negotiation. With care, you can secure a contract that supports both your professional growth and financial well-being.
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