A physician contract is a critical document that defines the terms of a professional relationship between you and an employer. Though you may feel confident enough to negotiate your physician contract on your own, getting assistance from an attorney can significantly improve outcomes. Lawyers provide invaluable insights, ensuring that contracts are legally sound, fair and aligned with your best interests.

Understanding employment contracts 

Employment contracts outline various elements of a physician’s working arrangement, including:

  • Salaryandbenefits:Compensation structure, bonuses, insurance coverage, retirement plans
  • Jobdutiesandexpectations:Defined roles, responsibilities, performance expectations
  • Noncompeteandconfidentialityclauses:Restrictions regarding future employment and protection of company-sensitive information
  • Terminationconditions:Severance packages, grounds for dismissal, notice requirements

These contracts are legally binding. Therefore, understanding the nuances before signing is vital.

The importance of negotiation 

Many physicians accept initial contract offers without negotiation, fearing rejection or employer dissatisfaction. However, negotiating employment terms is standard practice and often results in better compensation and legal protections. Key reasons to negotiate include:

  • Ensuring fair market compensation
  • Securing benefits that align with personal and professional goals
  • Avoiding restrictive clauses that could limit future career opportunities
  • Protecting oneself from unjust termination or exploitation

Common negotiation mistakes 

Mistakes during contract negotiations can lead to unfavorable terms. Common pitfalls include:

Failing to research compensation benchmarks.Physicians should research industry-standard salaries to ensure competitive pay. Resolve, for example, provides access to compensation data and market intelligence for physicians and other advanced practice providers. Accepting an offer without verifying market rates may result in lower compensation.

Ignoring non-salary benefits. Compensation is not just about salary. Negotiating paid time off, professional development stipends and work flexibility can enhance overall job satisfaction.

Overlooking  legal  terms.Contracts often include complex legal clauses regarding intellectual property, non-compete restrictions and severance terms. Misinterpreting these clauses can lead to unexpected consequences, like being unable to generate income from a side gig.

Acceptingverbalagreements.Employers may make promises that are not reflected in the written contract. Physicians should ensure all agreed-upon terms are documented.

How an attorney helps 

While physicians can negotiate contracts independently, legal professionals provide expertise that maximizes favorable results. Here’s how attorneys improve contract negotiations:

Identifying  legal  risks  andclarifyingambiguouslanguage.Attorneys are trained to analyze employment contracts and identify clauses that may pose risks.

Strengthening compensation and benefits. An experienced, physician- focused employment lawyer help physicians negotiate higher salaries, performance bonuses, health care coverage and retirement benefits.

Enhancingbargainingpower.Physicians with legal representation demonstrate professionalism and preparedness, leading employers to take negotiations more seriously.

Providingstrategicguidance. Attorneys guide physicians through negotiation tactics, helping them confidently address counteroffers and objections.

Real-world examples


Consider these examples of real-life changes physicians have received in negotiations, provided by Resolve:

  • Noncompete modifications in a “standard” employment agreement from a large health care system from a large health care system
  • $200,000 increase in base compensation after review of fair market value data
  • Adjustment to consider a four-day workweek as full time for a busy surgical practice

When to seek legal assistance 

Physicians should consider hiring an attorney in the following situations:

  • Contracts include unfamiliar legal terminology
  • Negotiation involves high-stakes compensation or physician- level benefits
  • The agreement contains restrictive clauses, such as non-compete restrictions or intellectual property ownership claims
  • The physician is transitioning from independent contractor to full- time employment
  • The employer has provided a complex or lengthy contract

While hiring a lawyer requires financial investment, the benefits of securing favorable employment terms often outweigh the costs.

Final thoughts 

Employment contract negotiations are essential to ensure fair and beneficial working conditions. While physicians can navigate these discussions independently, attorneys provide expertise that enhances compensation, protects legal rights and strengthens negotiating power. Seeking legal assistance not only prevents unfavorable contract terms but also maximizes job security and career growth.

An investment in legal assistance is an investment in long-term professional success. •