But who knows, maybe in time you find that you love this geographic area and want to stay even after leaving your current job situation. You don’t need to listen to everything or follow each piece of advice, but the more eyes on it the better. Op-Med is a collection of original articles contributed by Doximity members. If you are a trainee, you will eventually be negotiating a contract. Other benefits of Resolve’s physician contract review service includes: Flat-rate pricing, with no additional or hidden attorney fees. Agreeing to a change without getting it in writing. What mistakes have you made in the past? There is usually some wiggle room within the contract to make more or less over time. IP addresses are logged and tracked to maintain the integrity of our service. Don’t miss the opportunity to ask for what you want. But we have some great news, with our new contract management software, this cost is drastically reduced and we even provide you with the tools needed to negotiate on your own if you want to really save some money. Until now, I’ve written a lot about very personal aspects of my financial life and overall life. Know the Conditions of Your Employment. Jordan D. Frey MD is a plastic surgeon specializing in microsurgery and breast reconstruction. Everyone will … If you are moving somewhere with a temporary plan or would not stay in that city without being at that job, then a non-compete may not be as big of a deal to you. All compensation must be set at fair market value without regard to referrals to the hospital. Focus internally and ask how you could alter things to be the best for you. You can be sure that the administrators negotiating the contract with you know exactly how much value the average physician in your position brings. As one expert said, “Figure out what has worked and what has not worked. If you are joining a private practice or partnership, make sure that the details of your partnership track are completely spelled out to the last detail in your contract. But rather than get upset, I just used those “no’s” to help get a “yes” to two in other parts of my contract. You must know the strength of your position, play your strategy accordingly, and finally ensure that you keep the client happy. Your wealth is what you make (your income) minus what you spend (your expenses). That is such an incredible service that you are offering! Most contract negotiation projects cost between $8,000-$12,000 and typically yield at least a 12% increase in your annual collections over 24 months. When I signed my first employment contract (private practice hire) many years ago, I was clueless. [Even if you are not about to negotiate your first contract, I’m sure that this post will help you! Also affecting the payment structure for physicians are value-based models such as accountable-care organizations and patient-centered medical homes. At Physicians Thrive, we’re here to help you understand and negotiate your contract before you sign. But the reality is that these arrangements often do not go as intended. Everyone will prioritize different things in their contracts. Still Need a Written Personal Financial Plan? I feel that this amount of time allows for both parties to make a good faith effort at making the relationship work, even if there are bumps in the road. This was not an issue with the hospital-based job that I took but was something that I made sure was very clear with other potential opportunities. As our next tip shows, productivity payment formulas have largely replaced straight salary in many organizations. “This is important, because hospitals are limited in what they can pay physicians by Stark regulations. Soon, you will be interviewing for and evaluating potential job opportunities. When preparing for an interview, it is helpful to utilize one’s personal, professional and Don't let any unrelated factor determine your worth, such as your gender or race. So just ask. The Best Contract Deal Requires Negotiation To reach your financial and personal goals, you must become an effective physician negotiator. But really, this is going to be the crux of your negotiation. Flexible consultations with your lawyer to … The non-compete clause is a big one. Contract Diagnostics only does physician employment contract reviews – so we want to serve you the best, so you’ll return and refer colleagues. It sounds so obvious that it almost doesn’t seem helpful at first. You are not trying to get the best contract compared to your peers or anything like that. I’ll give an example from negotiating my contract. broadly diversified, low cost index funds, make real estate investing an active pursuit, average physician in your field does annually, Ask your mentors how much they make and how their contract is structured, Ask recent graduates in your field how much they make and how things went negotiating their contract, Find out how many relative value units (RVUs) the. Limit your spending so you create a savings rate of at least 20% to invest. You can even send me your contract, I’d be happy to look it over. Furthermore, there’s a time period in which you have to “give notice” that you are looking “to negotiate a new one.” An expert interviewed in the article said, “This is absolutely something a physician needs to keep track of, because the automatic renewal gives hospitals the advantage.”, 2. Benefits. You can therefore increase your wealth in two broad ways: increase your income or minimize your expenses. You might be told yes to a request verbally, … Most contracts are performance-based using the amount of relative value units (RVUs) generated by the surgeon. As a physician, you … I’ve had many medical students shadow me in my office over the years and I always sit down with them and discuss potential income and lifestyle. Enter your email address to subscribe to this blog and receive new posts by email. Negotiating a contract renewal is pure sales. Maybe you even agree to take less money to reduce or eliminate the constraints of the non-compete clause. The first season of Making the Rounds , a new podcast from the AMA, focuses on the complexities doctors confront while negotiating their first physician employment contract. In the case that you find yourself unhappy with things, you want to make sure that you can make changes that improve your life without restriction. If you just throw it at fancy cars, homes, and toys, you’ll be just as broke as you are now. In large groups it is typically a … That’s another feeling that can and will lead to burnout. You do NOT want to lock yourself into a contract that doesn’t serve you or your needs. This may be the best single piece of advice that I received regarding contract negotiation. Remember, if you negotiate an $80K, $100K, or a $120K salary, five years later, an annual 5 percent raise lands you at approximately $97K, $122K, or $146K, respectively. In negotiating a physician contract, it can be easy … I negotiated a relatively short contract (3 years). The goal is to reach ideal terms, or at least a feasible compromise, for both the prospective employer and the physician applying for the position. The contract serves as a framework for the working relationship. Where do you see yourself in three or five years? Who governs the practice? Consider how pay is structured. A contract renewal with a major vendor is always a key milestone for any procurement or ITAM professional as it provides the opportunity to showcase your true worth to your employer. Therefore, I sought a contract with minimally incentive-based pay. The least restrictive non-compete clause is obviously to your greatest advantage. I’m not saying my contract is perfect. 1. Communicate clearly, and often. Furthermore, there’s a time period in which you have to “give notice” that you are looking “to negotiate a new one.” By the end of my negotiations, I had so many eyeballs, notably my own, review the contract so many times that the lawyer didn’t have a ton to add. Like most physicians, I am highly motivated by incentives. 1. 1. Avoid “going to the well” too often – “This is a very common mistake, when candidates make multiple requests for... 3. Your expenses are completely in your control. All of these questions, cited by experts in the article, are worthy of consideration as you renegotiate your contract. Writes Stagg Elliott, “Contract experts say administrative duties can creep in, especially as hospitals and large health systems turn to physicians to help establish accountable-care organizations and other novel care delivery models. Revealing My Secret Strategy to Pay My Huge Student Debt, Finance Flash Go! Ranging from physician employment contracts to physician shareholder agreements, and after drafting well in excess of 1,000 such contracts, our founder is indeed experienced. This is your life and you have every right to know what to expect! Know your renewal date. But always make sure that you contract allows for these extracurricular pursuits. “After a physician figures out the renewal date, he or she needs to collect data to support the compensation requested, whether or not it is higher than the original salary,” Stagg Elliot says. A contract is just a vehicle to set expectations, but understanding those expectations is very important. It also dovetails nicely off Read more…, As a reminder, here at The Prudent Plastic Surgeon, I’m going to be doing something new. Once you are in that range in negotiating your contract, you can get further into the details. Physician Contract Negotiation is Just One Part of the Puzzle. You had better know that as well…and then know why you are way more valuable than the average physician in your field. Right now, incentive pay comprises three percent to five percent of a physician’s package. At the same time, many physicians wonder if they really need a lawyer to come to a fair contract. You know what fair compensation is. No handshake agreements, no verbal promises, nothing. The providers in the group include one physician, who is also the owner of the practice, and two other nurse practitioners. Now I understand that many people may desire a strong incentive component in their salary. Physicians should enter negotiations with a clear idea of what they want and what is minimally acceptable. Failing to do so is leaving money at the negotiating table. Here…Use Mine! However, for most physicians, their work as a doctor will represent the large majority or all of their income. For those unfamiliar, a non-compete clause essentially says in varying terms that if you leave this job you cannot work within X miles of the job site for a certain length of times, usually 1-3 years. 3. As long as your are reasonable and respectful, the worst that the other side can say is “no”. This week, it’s about my quest to Read more…. Find out how long it will take to become partner. Know your renewal date. Do they split them evenly or based on seniority? Are you allowed to practice part-time elsewhere? And, for the first time, you will be in a position to actually negotiate your contract. Your income is also in your control, but perhaps to a lesser degree. We feel embarrassed. These numbers should be available from your employer. I just graduated in July 2020 (less than 4 months from the time of writing this post) which means that I found a job and the negotiated and signed a contract successfully. However, you largely set the scale of your physician income as soon as you sign on the dotted line. We specialize in physician contract review and physician agreements. Contract Negotiation for Nurse Practitioners Preparation is very important to the nurse practitioner hoping to conduct a successful interview and negotiate an employment contract. Men often expect to earn salaries that are much higher than what women expect to earn. After 3 years, I will be free to re-negotiate according to the value that I bring to my employer at that point or to move on. This is especially important if you are new to concepts like non-compete clauses, partnerships, buy-ins, or malpractice coverage. I used their precedent to remove the clause from my contract. I bet there is at least something!]. I was told “no” for a couple of the “asks” in my contract. Many times, resident/fellow physicians feel uncomfortable asking their attendings about money and contracts. A physician must negotiate whatever terms he or she feels are truly essential to job satisfaction. I would encourage all medical students/residents to politely ask about future income, lifestyle, and what to watch out for in signing a contract. This will reduce or eliminate the need to buy expensive individual policies on your own dime. There is so much... 2. This is obviously such an important contributor and factor in your financial and overall well being. Why or why not? Great post! The goal of negotiation is to create a win-win solution, not to win at the expense of the other party. Assisting first physician contracts and various physician contract types. Until now that is! What would you have changed last time in retrospect? Ask about pay for nonclinical duties. In general, hospitals and health system employers offer a better range of benefits … Don’t be bashful to share the specifics of your contract and encourage others to talk openly about their contract. This is a simple matter of not allowing organizations to take advantage of you and your skills. Many will tell you that it is a standard part of the contract, however everything is negotiable. They provide flat rate – transparent pricing so you can evaluate your compensation at your own pace – get answers to your questions, and negotiate the best terms … You can start a side gig (check out this list of physician side gigs) or make real estate investing an active pursuit, among other options. That high salary is like seed money to grow your wealth. A helpful article by Victoria Stagg Elliott at American Medical News gives physicians five key tips for renegotiating an employment contract, especially since the second time around, you’re a known quantity and probably valuable to the organization. But what I realized is that this endless pursuit ultimately frustrated me and contributed to my burn out. My Stock Portfolio Is Better Than Your Financial Advisor's, Physician Side Gigs to Make You Passive Money, How to Screen & Analyze Investment Properties the Right Way. You don’t want to go into a situation with the implication that you will be made partner in 2 years to find out that it actually will take 7 years and require a significant buy-in. Save 20-30% of your income and invest wisely in broadly diversified, low cost index funds or well vetted real estate investments and you will put yourself in a great position. Five Tips for Renegotiating a Physician Contract. So, I was very happy to take a base salary that paid me a very good amount of money that I could grow through smart investing and live very comfortably. If you are in need of a Physician Contract review, I have negotiated a deal with the physician contract review company Resolve to get The Physician Philosopher readers a 10% discount on their contract reviews. As an aside, make certain that you contribute enough to your retirement account to trigger the employer match. What does your noncompete clause say? That’s $22,800 additional money that will grow tax free via compound interest that is basically a part of your contract. Learn if your employer offers group malpractice, disability, or life insurance and how much it covers. The most important terms in this regard are your contract length and the existence or nature of your non-compete clause. This range could soon increase to seven or even 10 percent. But you just signed your dream contract because you took the time to really think it through and make it the best arrangement for both sides!