Physician Contracts, Disability Insurance and Investments

June 27, 2024April 19, 2015 by Justin Nabity

Contracts: Horrible Unexpected Results Of Casual Contracts

It’s tempting to trust your new employer and assume he or she has your best interests at heart. Employers are, after all, showing faith in you when they offer you a contract. However, it’s not uncommon for unexamined contracts to contain unintended pitfalls that make things go horribly wrong, sometimes long after you’ve been hired. That’s what happened to a physician in the Chicago area, as described in this article. How do you overcome contract dangers like this?

Physician Contract Negotiation: False Assumption

June 27, 2024April 19, 2015 by Justin Nabity

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.”

Physician Interviews: Employment Surprises

June 27, 2024April 19, 2015 by Justin Nabity

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™.

Physician Contract Review: Full Documentation

July 27, 2021April 19, 2015 by Justin Nabity

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.

Physician Contract Review: Financial Records

June 27, 2024April 19, 2015 by Justin Nabity

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:

Physician Contract Review: Non-compete Clauses

October 20, 2022April 19, 2015 by Justin Nabity

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.”

Physician Contract Review: Professional Counsel

November 4, 2022April 19, 2015 by Justin Nabity

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 … Read more

Physician Employment and Partnerships: Evaluating Options

June 27, 2024April 19, 2015 by Justin Nabity

Don’t run out of time!

Begin interviewing and evaluating employment and/or partnership opportunities one to two years before finishing training or at least six months before the initial term of your current contract.

Residents and fellows have often told us that they receive very little training in the business and financial areas that are critical to beginning their career after completing training. Many find their last year and especially the final months to be a sprint, having to cram many very important things in all at once. Such as…

Physician Contract Negotiation: Letters of Intent

December 22, 2022April 19, 2015 by Justin Nabity

Be careful not to “tie your negotiation hands” when signing an offer letter.

Many employers use a Letter of Intent, also known as an Offer Letter, to get new physicians to agree to certain terms before they draft the actual employment contract. This is a routine part of the negotiation process, but it should not be treated as such.

Sometimes the Offer Letter is written in such a way that it is binding and other times it is not. The key point here is to make sure that when signing an Offer Letter, the employer knows that you are signing it without settling on the final terms until you have reviewed the entire contract. It is advisable to consult with an experienced contract attorney early in the process, even before a letter of intent is on the table, so you can address key terms up front. The longer you wait to bring up concerns and areas of negotiation, the harder it will become to get the employer to consider alternate terms.

Physician Contract Negotiation: Value of Multiple Offers

March 4, 2022April 19, 2015 by Justin Nabity

Using Multiple Offers for Contract Negotiation

Having multiple employment offers provides additional leverage during contract negotiations

When physicians are considering more than one employment offer, they often have additional leverage during negotiations. The reason for this is that the physician can utilize the strengths of each offer as a way to request changes in the competing offer(s).

For a very simplified example, all else being equal, Employer A offers a compensation package of $200,000 with a signing bonus of $20,000 while Employer B offers $215,000 and no signing bonus.

Contracts: Horrible Unexpected Results Of Casual Contracts

Don’t assume you cannot negotiate physician contracts

Don’t let inadequate interviewing cause employment surprises

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

Don’t sign physician contracts without access to financial records

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

Don’t run out of time!

Be careful not to “tie your negotiation hands” when signing an offer letter.

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