How to Negotiate a Physician Contract? Comprehensive List

Comprehensive 15 Point Checklist when Negotiating Physician Contracts 

How do you negotiate a physician's job? 

Experienced physicians know that the first job will not be their last, first contracts need to be looked at very carefully to plan ahead for how their future employment opportunities will be impacted. It is an awakening when a physician resident comes out of school and lose the immunity and cocooning that they had during residency. In reality, physicians in the working world are susceptible to lawsuits, licensure complaints, employers who are negligent in carrying out their processes, and often find themselves handcuffed into non-compete agreements that impact their future employment prospects.  

There are many things to negotiate in a Physician Employment Contract.  The terms include:  

  1. Important - Compensation Calculation: Is compensation based on a set salary or net revenues? Is performance based on wRVUs or profitability of the business? After-hours services compensation? Earning a bonus based on performance and attracting new patient business? 
  2. Important - Malpractice insurance: Will the employer provide it? Does it include tail coverage, nose-in coverage, and differences between claims made and occurrence based coverage.
  3. Minimum Obligations of the Employee: What is the physician obligated to perform: based on number of days worked or number of patients seen, wRVU's performed, or revenues collected.
  4. Important - Minimum Obligations for the Employer: Maintaining a support staff, a reliable Electronic Medical Record (EMR) system, scheduling, training, relaying patient messages, prescription refills (controlled and non-controlled), position on patient abuse of the professional.  
  5. Location: Will all the locations that the employer owns or is affiliated with apply to the non-compete? Which location is your primary location?
  6. Hours: What days and times will the physician work? Is the call schedule fair? Is it in-house call or home call? Call compensation?
  7. Paid time off (PTO):  How many vacation days, sick days, CME days, family medical leave, holidays set and calculated.
  8. Professional Expenses: Continuing Medical Education (CME), Annual Dues of various associations and licenses, obtaining certifications, related travel and lodging for annual meetings, journals, books, personal professional equipment (i.e. stethoscope, uniforms)?
  9. Non-solicitation: Can a physician take other employees? Contact vendors, consultants or pharmaceutical reps? 
  10. Confidentiality of business processes: What is the unique process the employer uses?
  11. Patient records: PHI - who is the custodian of records? And will the physician get access to them post-employment if there is a complaint against the license?
  12. Hospital Privileges: is the employment contract coterminous with hospital privileges? What happens to privileges if the physician leaves the employer?
  13. **Right of Termination: who can terminate with cause and without cause? How many days notice?
  14. Very Important - What happens post termination: earned paid time off, return of records and equipment, access to patient records if a question comes up later.
  15. Very Important - Non-compete: who or what entity is defined as a competitor? How many miles from what location? What area of medicine/specialty? Is the non-compete nullified if terminated without cause? 

 Reasons to retain an attorney: 

Most physicians do not understand the intricacies and ramifications of physician employment agreements. To review and negotiate a contract that does not limit the future of a young physician, it is best to get legal help earlier in the process to navigating the 5 most important things. 

  • Long lasting consequences of Non-compete  
  • Compensation is not clear or fair market value  
  • CME (Continuing Medical Education) benefits are not clearly listed – (association dues, license dues, course registration, and travel expenses) 
  • You may be restricted from serving on certain insurance panels 
  • You may have to relocate out of the area. 

What does it cost to Have an Attorney Review a Physician Contract? 

Our firm reviews physician contracts: 

- Option 1 - for $875, and we will give you insights on what and how to negotiate, and conduct a background check on the employer.

- Option 2 - Some physicians prefer for us to negotiate their contracts, ask us about fees if that is your preference. 

- Option 3 - If you just wish to get some substantive legal input and are not ready to retain a law firm, you may consider making a 1 hour appointment  to discuss the specifics of your situation, for a prepaid legal fee of $475 legal, click here

Here is an informative webinar on How Experienced Physicians Negotiate Employment Agreements.

Hosted by the South Florida Hospital News and Reporter.

For Personalized Attention Of Legal Counsel

Available by Appointment
Contact Us for an Initial Review and Consultation

If you are a physician, nurse, dentist, pharmacist, hospital, physician group, or medical lab looking for legal advice then you’ve reached the right site. Today’s healthcare environment is riddled with complex issues of professionalism, market strategy, and the law. Contact us now!


Office Location
401 E. Las Olas Blvd.
Suite 1400
Fort Lauderdale, FL 33301
Call or Text: 954-445-5503
Office: 954-634-2370
Email: [email protected]

Mailing Address
6100 SW 6 Street
Plantation, FL 33317