How to negotiate a physician contract?

Start by reviewing the entire contract for red flags like restrictive non-competes, missing tail coverage, and below-market compensation. Request changes in writing before signing. Key negotiation points include: base salary (benchmark against MGMA data), signing bonus, relocation allowance, CME allowance, call schedule, non-compete radius and duration, termination notice periods, and tail coverage. Never accept the first offer—employers expect negotiation.

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.

California Physician Contract Review

Reviewing a physician (or NP, PA, or psychologist) employment contract in California? Our AI flags red flags, non-compete traps, missing tail coverage, and below-market pay in ~60 seconds — with California-specific non-compete law built in.

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Are non-competes enforceable in California?

Largely unenforceable

California voids nearly all employee non-competes, and 2024 reforms (AB 1076 / SB 699) reinforce this — for every profession. This clause is almost certainly unenforceable.

Reference: Cal. Bus. & Prof. Code §16600

Educational summary of frequently-changing state law — not legal advice. Confirm with a licensed attorney in your state before relying on it.

What to check in a California physician contract

Non-compete enforceability (California): Confirm the radius, duration, and whether California law would even enforce it as written (see above).
Malpractice tail coverage: If the policy is claims-made, push for employer-paid tail — it can cost $25k–$50k on exit.
Base salary vs. market: Benchmark your base against the local median; aim for the 50th–75th percentile.
Productivity ($/wRVU): Compare your $/wRVU rate to CMS benchmarks — a low rate quietly costs tens of thousands a year.
Termination terms: Check that "without cause" notice periods are symmetric and the "for cause" definition is narrow.
PTO, CME & signing bonus: Compare to market norms (4–6 weeks PTO, ~$4k CME, $10k–$50k signing).

California physician contract review FAQ

Are physician non-competes enforceable in California?

California voids nearly all employee non-competes, and 2024 reforms (AB 1076 / SB 699) reinforce this — for every profession. This clause is almost certainly unenforceable. (Cal. Bus. & Prof. Code §16600) Educational summary of frequently-changing state law — not legal advice. Confirm with a licensed attorney in your state before relying on it.

How much does a physician contract review cost in California?

A California physician contract attorney typically charges $500–$2,000. WeekdayDoc's AI negotiation brief — red flags, salary percentile, California non-compete law, and an ask-script — is $97 one-time, or included free with Premium (10 briefs/year).

What should a California physician check before signing an employment contract?

At minimum: the non-compete (radius, duration, and California enforceability), who pays malpractice tail coverage, base salary vs. the local market median, the $/wRVU productivity rate vs. CMS benchmarks, and the termination notice terms for both parties.

Scan your California contract now

Paste or upload your offer and get your red flags, salary percentile, California non-compete analysis, value-at-risk, and a negotiation ask-script. $97 one-time — or free with Premium (10 briefs/year).

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Educational information only — not legal advice.