The College’s Advocacy Council works hard to keep practicing allergists informed about critical socioeconomic and regulatory issues. The Council assists in resolving complex payment disputes, monitors and lobbies state and federal elected officials and government agencies, and represents the profession before payers, managed care, and other health care entities. We’re advocating for practicing allergists. When it comes to physician employment contract negotiations, it’s important that you advocate for yourself. The Advocacy Council has advice for developing a strategic approach to securing the contact that fits your needs – and your employer.
Whether you are fresh out of fellowship and eager to earn your first paycheck, or transitioning to a new practice, understanding and negotiating an employment contract is a critical skill set you need to develop. Medical school and residency programs excel in preparing physicians to care for patients, but limited training is provided for students and residents on the fundamentals of employment contracts.
Preparing for negotiations starts by understanding the elements of physician contracts and developing a strategic approach to signing a fair and mutually beneficial agreement with an employer.
Prioritization and doing your research
You have your own unique priorities for your career. Some physicians prioritize paid time off and call schedule, while others are concerned with benefits packages and compensation structure. Not every part of a contract is negotiable, and negotiation requires compromise on both sides to achieve desired outcomes. Physicians should prioritize the most critical aspects of their contract and prepare for compromises on less important contract terms. Establishing clear goals and a realistic understanding of what the employer can offer is essential for satisfaction. Take time to determine what parts of the contract are most important to your life before heading into a conversation with a potential employer.
Physician employment contracts generally involve compensation, benefits, work expectations, and termination clauses. Before entering into a negotiation on an employment contract, you should familiarize yourself with important terms and understand industry standards.
Compensation
Salary and compensation packages are a central component of a physician’s employment contract. Compensation can be a touchy subject, but you need to understand the market average for allergists in your geographic area. Leverage salary data from reliable sources like the Medical Group Management Association (MGMA) and the College to understand fair market compensation. Additionally, consider speaking with colleagues or mentors with experience negotiating contracts in similar roles or regions. Physicians may be offered a base salary, productivity-based pay, such as RVU-based compensation, or a combination of both. In addition to base salary, be sure to solidify details on bonuses and profit-sharing.
Benefits
“Benefits” refers to the non-salary compensation provided by an employer and can include health insurance, retirement plans, paid time off, disability and life insurance, continuing medical education (CME) allowances, malpractice insurance, relocation assistance, student loan repayment assistance, and wellness programs. It is important to carefully review the benefits offered by a potential employer. Pay close attention to details in the contract like the type of malpractice insurance (claims-made vs. occurrence-based) and who pays for tail coverage if needed.
Work expectations
Ensure that work expectations such as call schedule, administrative responsibilities, and clinic hours are clearly outlined in the contract. These expectations directly impact work-life balance and overall satisfaction. Ask about holiday schedules, weekends, and the process for requesting time off. Reflect on your ideal work/life balance and the flexibility the contract offers for parental, bereavement, and caretaking leave. You may choose to negotiate for fewer hours overall in exchange for a reduced salary or bonus package. Clarify how after-hours responsibilities are compensated. Be sure to ask if CME hours, conferences, and other training are compensated as work, or if paid time off is used.
Termination clauses: Contracts should specify how either party can terminate the agreement, including “without cause” termination clauses. Physicians should negotiate for a reasonable notice period to allow time to find a new position or transition patients.
Review before you sign
Once you and your potential employer agree on the terms of the contract, remember to review the final document carefully before signing. Ensure that all negotiated items are documented in the written agreement and seek clarification if anything remains unclear.
By approaching contract negotiations with preparation, understanding, and professional support, physicians can secure terms that reflect their value while fostering long-term career satisfaction. Strongly consider an attorney with experience in medical contracts to review the agreement. It is an investment that is often worth the expense.
The College has partnered with Resolve to offer employment contract negotiation services to ACAAI members at a reduced rate. Resolve is a national firm specializing in physician employment contracts that provides professional guidance on navigating and negotiating salary and benefits to physicians.
The Advocacy Council – ADVOCATING FOR ALLERGISTS AND THEIR PATIENTS.
