Physician Benefits Explanation

Physician Contract Negotiation: False Assumption

Don’t assume you cannot negotiate physician contracts

Most physicians who are finishing their training assume they will have little to no chance at negotiating with a potential employer. Seasoned physicians know from experience this is not true, even for first timers. Don’t get fooled by the employer’s first line of defense…”this is a standard physician contract…the same one we give everyone else…it is compliant with current state laws…and it will not be modified.” Continue reading…


Contract items to review

Physician Interviews: Employment Surprises

Don’t let inadequate interviewing cause employment surprises

When asked, most physicians say they feel equipped for the medical aspect of their career, but not prepared to interview and negotiate successfully. Many choose to ignore this and enter their interviews unprepared. Often times this leads to anxiety and a lack of information which can result in unfortunate surprises once employment begins.

Other physicians recognize this problem, but either don’t know where to start or can’t find the time to adequately prepare. In all of these circumstances physicians would benefit from knowing the following 5 rules which are a part of the 15 Basic Principles for a First Interview found in the Physician Employment Interview Kit™. Continue reading…


Fine Print in Physician Contracts

Physician Contract Review: Full Documentation

Don’t sign a physician contract without full documentation of the offer

Being offered a physician contract is one piece of the puzzle when joining a new practice. Signing without all of the components of an offer can lead to financially painful surprises down the road.

For example, a physician joins a practice and signs a three year agreement with the belief that he would make partner at the completion of three years. What he didn’t find out is that at the three year anniversary of his physician contract, it is at the discretion of the shareholders as to whether or not he is qualified and has earned partnership. If the owners decide that the time is not right, the physician may have to wait until the next annual shareholder meeting before he has another opportunity for partnership. Continue reading…


Physician Financial Review

Physician Contract Review: Financial Records

Don’t sign physician contracts without access to financial records

In order to determine the financial strength of the practice you may join, it is important to review certain financial records beforehand. If you don’t, you could be subject to poor business management causing you to be forced to take pay cuts, an excessive work load, early termination, or a bad partnership deal, just to name a few. The right time to review financial records is before, during and after employment.

As an employee you may find the employer unwilling to share certain information while as a partner, you must have access. Some of the key financial documents to review are the following: Continue reading…


Physician Contract

Physician Contract Review: Non-compete Clauses

Watch out for disguised or indirect non-compete clauses in physician contracts

One of the biggest issues new hires of medical groups deal with is misunderstanding the enforceability of restrictive covenants and non-compete clauses. Add to this the trickiness of employers telling them “we do not have restrictive covenants” when other provisions exist that essentially act as restrictive covenants. For example, an employer may offer a position with “no restrictive covenants” but the physician contract has a termination fee that acts as an indirect “restrictive covenant buyout.”

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Physician Restrictive Covenant

Physician Contract Negotiation: Restrictive Covenants

Watch out for termination provisions that can cause significant consequences

Negotiate restrictive covenants by offering palatable alternatives

Most physician contracts for employment relsationships or partnership agreements use language that is designed to protect the employer’s interests. A common provision used for this purpose is a restrictive covenant. These covenants provide much needed protection for the employer and they are a legitimate method used to prevent the business and its partners from experiencing unnecessary financial loss. For example, an employed doctor could build a successful practice by leveraging the stability and reputation of an existing group, later terminate the relationship and then, pull existing or prospective patients away from the group. Additionally, privileged information originated and maintained by the existing practice may benefit the terminated doctor in a way that causes unwanted competition. Continue reading…


Female Doctor

Physician Contract Negotiation: DOs and DONTs

DOs

Have clear objectives during physician contract negotiation.

If you do not have clear objectives when discussing your agreement with your employer, you could be signing an agreement that will cause uncertainty and unhappiness in the future. You should understand your own objectives and express them to your potential employer during negotiation to achieve an agreeable compromise.

Give immediate, continuous feedback to the employer.

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professional counsel

Physician Contract Review: Professional Counsel

Make an investment in your career with professional counsel to avoid future pitfalls and negotiate better terms

Before you sign on the dotted line, protect the foundation of your career with a physician contract review by a physician contract expert.

Signing physician contracts for employment relationships, partnership agreements, business formation documents and lease contracts is common for physicians who have completed their training. According to the 2010 Physician Retention Survey by the American Medical Group Association and Cejka Search, about 50% of doctors leave their first employer within three years and about 60% leave within five years. Therefore, it is recommended that doctors have a plan in place for dealing with multiple physician contracts. Continue reading…


Physician Tax Documents

Physician Contracts: Evaluating Malpractice Insurance Benefits

Ask what type of malpractice insurance is provided before signing on with a new employer

Employers typically provide physician malpractice insurance and it should be evaluated before signing.

Most employers provide professional liability insurance, also known as physician malpractice insurance, as a part of the employment benefits package. Even if a physician is employed as an independent contractor, in most cases, the corporation or group covers the cost of this benefit. But what exactly are they likely to cover?

On the surface, physician malpractice insurance seems simple enough, but there are many factors that must be taken into account. A working knowledge of how this type of insurance works is required to accurately assess the coverage being offered. Continue reading…


Physician Family

Physician Disability Insurance: Insure Your Earning Potential

The specialized nature of a physician’s occupation requires a specialized plan for protecting their most important asset – their “intellectual capital and ability to work.” Therefore, selecting the right disability insurance is a strategic choice in a physician’s overall risk management plan.

The Case for Adequate Coverage

In most cases, a physician’s career spans 20-30 years depending on when they finish their training. Over those years, a physician can earn $10 – $20 million, which is the return on their investment in their medical education and commitment to their patients through the years.
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