Chase Howard, a healthcare attorney with Bochner PLLC, said the average physician employment contract spans more than 20 pages, according to a Nov. 6 Medscape Medical News article.
Even if physicians understand their contract basics, many elements can have long-term impacts on job satisfaction and professional growth. Here are eight common mistakes young physicians make when signing their first employment contract, per Medscape:
1. Not negotiating. "Negotiating a contract is vital for securing conditions that will allow you to thrive," Annie DePasquale, MD, founder of Collaborating Docs, told Medscape. Effective negotiation leverages the connection between job satisfaction and both tenure and performance.
2. Failing to prioritize work-life balance. While salary is a key element, physicians should also consider call schedules, bonus structures, vacation time and other benefits. "Within a year, the demanding call schedule was burning me out," said Matthew Casavant, DO, owner of South Lake OBGYN and Advanced Surgery in Clermont, Fla.
3. Overlooking non-competes. Noncompete agreements remain controversial in healthcare, and young physicians should carefully review these clauses. "Assess what the mile radius relates to," said Todd Baker, CEO of the Ohio State Medical Association. "Understand if it pertains to the primary facility or any owned by the employer."
4. Skimming malpractice insurance and OR time clauses. Some facilities may impose higher rates for malpractice insurance and OR fees on new physicians eager to start. "The key is to approach these discussions professionally and with an open mind,” said Thomas Jeneby, MD, a cosmetic surgeon in San Antonio.
5. Focusing on sign-on bonuses without caution. Physicians noted that repayment obligations can come with sign-on bonuses. Elizabeth Esparas, MD, recommended "ensuring the bonus is prorated over a set number of years" to avoid repayment if leaving the practice early.
6. Not protecting intellectual property. Intellectual property rights aren't always negotiable, but for those interested in research or development, it's crucial to ensure protections are in place. "Ensure anything created on your own time remains yours," Mr. Howard told Medscape.
7. Glossing over compensation models. Physicians should fully understand their compensation model, which affects both patient care and their own well-being. Additional streams of income, such as supervisory pay and on-call stipends, are also important.
8. Overlooking exit strategies. Physicians have noted that they wish they had reviewed exit clauses more carefully, as notice periods can be longer than anticipated. "Without cause termination rights are in virtually every physician employment agreement. If not, that's a huge red flag," said Laura Lauth Andrews with Lauth O'Neill Physician Agency.