Benefits of contract review

Contracts might seem set in stone, but there's often room to improve them if you know what to look for. Even if an employer makes it clear they don't amend contracts, you'll still want to review what they offer to know whether there are any major issues that could affect your career long-term. When you review your contract, you help yourself by:

• Catching major red flags that could make it hard to leave a job if it doesn't work out
• Flagging areas for negotiating or discussing with your attorney
• Getting an idea of the workplace environment and how good of an employer the organization is for family physicians

If you're not sure where to start when it comes to reading a contract, we've outlined the most helpful steps in review, made a simple yes and no checklist to help you review a contract and partnered with a business that offers access to attorneys specializing in physician contracts.

5 steps for successful employment contract review

• Step #1: Read your employment contract carefully. Highlight items that appear concerning or that you don’t understand so that you can review them in more detail at a later time or with an attorney. 
• Step #2: Start an outline of issues to be discussed with an attorney. This list might include your top career priorities, items you'd like to negotiate, and items that you had specific questions about during your read through of the contract.
• Step #3: Review all your documentation and notes for missing or inconsistent information. Going back through your notes from interviews and comparing them to details in email correspondence, letters of intent, and your employment contract is a good way to identify any inconsistencies or details that you need to address in your negotiations.
• Step #4: Hire a health care lawyer. An experienced attorney can guide you in evaluating the physician employment agreement and provide counsel as you prepare to negotiate with an employer.
• Step #5: Develop a list of questions and issues essential to you before negotiation begins with the employer.

Key employment contract provisions to know

Physician contracts share many common provisions. You'll likely find all of these in your contract, and if you download a member exclusive checklist of questions to ask in each category, it's easier to focus on what's important.

• Term and Termination. This provision stipulates how your employment begins and ends. It should outline details of the length of agreement, automatic renewal or expiration, termination for cause, automatic termination, termination without cause, and non-renewal termination.
• Job Duties. Your employment agreement should clearly spell out expectations and define your essential duties, practice location, and schedule. Ensure what is in writing matches your expectations. A lack of clarity in daily activities and expectations can lead to misunderstanding or conflicts.
• Malpractice. Be sure you understand the type of policy provided in your agreement, who is responsible for paying for the policy, and how tail coverage will be paid for when your employment ends. AAFP Insurance Services Inc. can help you evaluate the malpractice provisions of your contract and understand your coverage needs.
• Benefits. Common benefits include paid time off, CME stipend, AAFP membership dues, and malpractice insurance. Additional benefits can include health insurance, retirement plans, and professional association dues.
• Compensation. A number of physician compensation models exist, including salary-only, salary plus bonus, and productivity-based compensation. Your employment agreement should clearly define your compensation plan, how it is calculated, and how it might change over time. 
• Non-compete. Non-compete provisions (or restrictive covenants) are enforceable in many states. Non-compete provisions may include geographic radius, length of time, scope of practice, and non-solicitation of patients, staff, or vendors. The non-compete you agree to will impact your potential future practice opportunities.
• Future Equity. For physicians joining an independent practice, a contract will ideally outline when you will have the opportunity to become an owner of the practice and the terms of ownership. 

Rate your contract

See how your contract stacks up against market data for family medicine. Use a tool from AAFP partner Resolve to generate a score for your contract based on real-time data from other physician contracts. Members can use code AAFP10 for a discount on additional Resolve services.