Reviewing and signing employment contracts is something that most pediatricians will do multiple times throughout their career. And no matter how great the contract may seem, there is always room for negotiation.
Getting ready to sign a new contract or renew an existing one?
Here’s what to look for when negotiating a pediatrician contract.
Salary and Bonuses
As a pediatrician, you deserve fair compensation for the challenging work you do. Before you agree to a specific salary, take the time to research what pediatricians in your region and at your experience level are earning. If your employer has offered less than you deserve, counter their offer in contract negotiations.
In addition to salary you can also negotiate other financial benefits, such as signing bonuses or relocation costs if you’re moving to a new state.
Not sure if your salary or signing bonus is fair?
This guide from Physicians Thrive goes into depth on how your geographical location will affect your salary and includes average annual salaries for pediatric subspecialties.
Benefits and PTO
From paid time off to how much you’ll pay for employer-sponsored healthcare, consider negotiating your benefits package. You may be able to get more vacation days, paid time off for CME, or better malpractice insurance coverage.
It’s also important to make sure that your contract includes everything you’ve been promised. This includes things such as dental insurance, vision insurance, and employer contributions to retirement savings accounts.
You cannot rely on verbal promises or agreements — every benefit you expect to receive should be listed in the contract. If it’s not, negotiate with your employer to include those terms before you sign.
Weekly Schedule and On-Call Hours
Does your contract call for unreasonably long shifts or extensive on-call hours?
Negotiate clear and concise terms for both your regular work schedule and your on-call obligations, including the location from which you’ll do those hours. Your contract should specify the number of hours you will work each month as well as how many on-call shifts you’ll need to cover, including those on weekends and holidays.
If you don’t like the hours or shifts offered you, you might be able to negotiate for a more flexible work schedule. For example, if the contract requires you to be on-call every other weekend, you may be able to negotiate it down to once every three weeks.
Non-Compete Clauses
Non-compete clauses won’t affect your employment when you’re working under contract, but they can have a serious impact on where you can and can’t work when your contract ends.
The non-compete clause usually stipulates that you can’t work within X number of miles of the employer for X number of years. This could significantly hinder your future employment opportunities.
Think your non-compete is unreasonable for its geographical limitations or length of time?
You can negotiate it.
For example, if an employee agreement states you can’t work within 20 miles of them for a period of two years, you might be able to negotiate a 15 mile radius for a period of three years.
Contract Length
Whether you’re looking for more job stability with a longer contract or hoping for more flexibility with a shorter one, you might want to negotiate your contract length.
Most physician contracts last a duration of about one to three years, though you may be able to get a slightly shorter or longer term.
The longer the duration of the contract, the more important it is to understand your termination clause as well. Should you wish to end your contract early, you could be penalized financially by having to pay back your signing bonus or relocation expenses.
Tail Insurance Obligations
Many employers protect pediatricians with malpractice insurance, but they often provide claims-made coverage. With claims-made coverage you’ll have to purchase tail coverage when your employment ends.
Your contract should clearly state who will be responsible for paying for tail coverage. In some cases, the employer and physician will share the expense. In other cases, the physician will be responsible for paying 100% of the cost of coverage. That can be thousands of dollars that you’ll have to shell out in one lump sum.
If your contract stipulates that you will be on the hook for 100% of the cost of tail coverage, try to negotiate this point.
In Conclusion
Physician contracts are complex and contain numerous legal terms that many physicians don’t fully understand. The best way to identify what you should negotiate is to hire a contract review attorney to review the document for you.
Without a legal expert on your side, you could lock yourself into an unfavorable contract that pays less than you deserve, hinders future job opportunities, and costs you thousands of dollars when the contract comes to an end.
