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POSTED: December 1st, 2023
POSTED IN: 2023 Quarter 4, EM Pulse - The Official Newsletter of MOCEP,

Contract Review and Negotiation Tips

Physician Contracts are a topic that often raises many questions. We sought advice from Resolve, experts in this field, to provide some key points on what to look for in a contract. Here’s what they shared with us. For more guidance from Resolve, visit the ACEP website here.

Contract Review and Negotiation Tips

Employment contracts greatly affect not only your work, but your personal life as well. Therefore, it is important to make sure your contract includes everything you need to be happy and successful for years to come. Here are some tips on what to look for in a contract and how to negotiate terms if necessary.

Compensation

Your compensation package is likely one of your top priorities in a contract, and for good reason. Before signing off on the first salary you are offered, make sure it is in line with market value for emergency medicine physicians in your location.

Consult data on average salaries for physicians like you, so you know whether you are being underpaid or not. Most employers reference the Medical Group Management Association’s (MGMA) annual report to determine what they will offer you. It is recommended that you access the same data, so you can negotiate on a level playing field.

Schedule and Call Hours

Scheduling is often an underrated part of an employment contract, and the right schedule can go a long way in preventing burnout. Ensure any language surrounding scheduling and call hours is clearly defined. If the wording is vague, like “hours defined by employer,” you could find yourself working at unexpected times.

Benefits

Your benefits package can include many different items, but some key details of your disability insurance and malpractice insurance will be particularly important to check.

Physicians usually want specialty-specific, own-occupation disability insurance. However, disability plans tend to have many options and you will still want to research the coverage that works best for your unique situation.

Malpractice insurance is a bit more straightforward and usually covered by your employer. When reviewing your coverage options, make sure to note whether the offered coverage is occurrence-based or claims-made. Occurrence-based is often preferred, but if your only option is claims-made, you will also need tail coverage.

Restrictive Covenants

Non-compete clauses are the most common type of restrictive covenant you will want to watch for. A non-compete prevents you from working within a certain radius of your employer’s location(s) for a specified amount of time after leaving your job.

Non-competes can be very restrictive if you want to leave your employer at any point but do not want to relocate your place of residence. Prevention is key, so even if you do not expect to change jobs in the near future, try to reduce the effectiveness of a non-compete or negotiate it out of your contract completely.

Additional Contract Terms

Physician employment contracts are usually long, complex agreements, and there will be many more terms which have not been mentioned here. Although, if you give considerable thought to the items mentioned above, you will be off to a great start. Asking for the terms you need, especially before ever signing a contract, will help you stay satisfied with your employment and develop a better relationship with your employer in the long run.