What should I look for in a physician employment contract?

Key areas to review include: compensation structure (base salary, RVU bonuses, quality incentives), non-compete clauses and geographic restrictions, termination provisions (with/without cause), tail coverage for malpractice insurance, call schedule requirements, PTO and CME allowances, and partnership track terms if applicable.

How much does a physician contract lawyer cost?

Most physician contract attorneys charge between $500-$2,000 for a comprehensive contract review. Some offer flat-rate packages while others bill hourly ($200-$500/hour). Given that physician contracts often span 2-3 years with compensation exceeding $200,000 annually, professional review is typically a worthwhile investment.

What is tail coverage and why is it important?

Tail coverage (or extended reporting period coverage) protects you from malpractice claims filed after you leave a position for incidents that occurred during your employment. Without it, you could be personally liable for claims filed years later. Tail coverage can cost 1.5-2x your annual premium, so negotiating employer-paid tail coverage can save $20,000-$50,000+.

Are physician non-compete clauses enforceable?

Enforceability varies significantly by state. Some states like California largely prohibit non-competes, while others enforce them if reasonable in scope, duration, and geography. Common terms include 1-2 year durations and 10-25 mile radius restrictions. Always have a local healthcare attorney review non-compete language specific to your state.

What are common red flags in physician contracts?

Watch for: one-sided termination clauses (employer can terminate without cause but you cannot), overly broad non-compete restrictions, unclear RVU thresholds or bonus calculations, no tail coverage provision, excessive call requirements without additional compensation, automatic renewal clauses, and vague language around duties and expectations.

What are the biggest red flags in a physician employment contract?

The most critical red flags include: (1) Broad non-compete clauses with large geographic radius or long duration, (2) No tail coverage for malpractice insurance, (3) Termination without cause with short notice, (4) Vague productivity requirements or unrealistic RVU thresholds, (5) Restrictive moonlighting policies, (6) Unilateral contract modification clauses, and (7) Below-market compensation without clear justification.

Should I hire a physician contract lawyer?

Yes, for your first few contracts or any contract worth over $300,000 annually. A physician contract attorney typically charges $500-$2,000 for a full review but can save you tens of thousands by catching unfavorable terms. Look for attorneys who specialize in physician employment contracts, not general practice lawyers. Many offer flat-fee reviews.

What is tail coverage and why is it important?

Tail coverage (also called extended reporting period coverage) protects you from malpractice claims filed after you leave a job for incidents that occurred during your employment. If you have claims-made malpractice insurance and leave without tail coverage, you're personally liable for any claims filed later. Tail coverage typically costs 1.5-2x your annual premium. Always negotiate for employer-paid tail coverage or occurrence-based insurance.

How do I know if my physician salary is competitive?

Compare your total compensation (base + bonus + benefits) against MGMA, AMGA, or SullivanCotter benchmarks for your specialty, experience level, and geographic region. Consider cost of living differences. Also calculate your $/wRVU rate if you have productivity-based compensation. A fair offer typically falls between the 50th-75th percentile for your specialty and location.

What is a reasonable non-compete clause for physicians?

A reasonable non-compete for physicians typically has: (1) Geographic radius of 5-15 miles in urban areas, 15-30 miles in rural areas, (2) Duration of 1-2 years maximum, (3) Carve-outs for hospital privileges and academic work, (4) Clear definition of 'competing practice'. Some states like California ban non-competes entirely. Always negotiate to narrow the scope, reduce duration, or add buyout provisions.

WeekdayDoc

Important: This tool provides educational information only and is NOT a substitute for professional legal advice. Always consult a qualified physician contract lawyer or healthcare attorney before signing any employment contract.

Free Physician Contract Review Tool

Learn how to negotiate a physician contract. Our AI identifies red flags, non-compete traps, and below-market compensation in seconds.

How to Negotiate a Physician Contract

Review Before Signing

Never sign on the spot. Take at least 1-2 weeks to review all terms carefully.

Benchmark Your Salary

Use WeekdayDoc's Job Analyzer to compare compensation across similar positions. Most offers are negotiable by 10-20%.

Check Non-Compete Terms

Negotiate radius, duration, and carve-outs. Some states ban them entirely.

Verify Tail Coverage

If claims-made insurance, negotiate employer-paid tail coverage.

Review Termination Clauses

Understand notice periods and "for cause" vs "without cause" terms.

Get Everything in Writing

Verbal promises mean nothing. All negotiated terms must be in the contract.

Paste your contract below for a free AI-powered review ↓

Free Physician Contract Review Tool

How to Negotiate a Physician Contract

Related Resources

Salary Negotiation Guide

Salary Calculator

RVU Calculator

Browse 8,000+ Jobs