5 grave mistakes physicians make in negotiating contracts
Despite the significance of employment contract, many physicians don’t put in enough time to read it carefully. Therefore, they make serious mistakes that can adversely affect them in the negotiation stage.
Since employment contracts typically differ from one healthcare organization to another, they contain different terms and conditions.
Here are the most common mistakes physicians make in negotiating contracts:
# 1 Not conducting adequate research on the prospective organization
Knowing your employer is important to assess the overall company culture. Before contract negotiation, physicians should conduct a complete research on their prospective healthcare employer /organization.
How’s the reputation of the organization? Speak to the employees working at the healthcare setting. Are they satisfied at the place? Also, analyze the organization’s profit and loss history, malpractice claims and pending litigation.
# 2 Lack of attention to fringe benefits
The first thing most physicians do is check their salary in the contract. While salary does matter, it’s just as important to take fringe benefits into consideration.
These include, bu
t are not limited to, health insurance, car allowance, life insurance, disability insurance, dental insurance, paid holidays, sick leave, maternity leave, malpractice coverage, loans, journal subscriptions, retirement plans, relocation expenses and transport and parking.
Before employment contract negotiation, physicians should assess fringe benefits. It’s better to consult a legal counsel for assessing and negotiating them.
# 3 Not specifying employment conditions
A physician employment contract specifies the conditions of employment. It summarizes the prospective employee’s rights and obligations. It states what the employee will be required to do and how they will be expected to perform these responsibilities. Some of these duties include an employee’s work hours, hospital rounds, office duties, etc.
Physicians should create a list of proposed duties, which they can negotiate with the prospective employer. Once both parties agree to the proposed duties, the physician should discuss compensation issues.
# 4 Overlooking the term of contract
Overlooking the term of contract can cause a multitude of problems, including litigation. Some employment contracts are renewable, while others are renewed via mutual agreement or the employer.
It’s therefore vital for prospective physician employees to understand the term of contract. In other words, how many years is it going to run?
# 5 Not understanding the legal sigificance of defined terms
Employment contracts consist of legal terms, which are usually in quotes, italics or underlined. For an average person, it can be difficult to understand what these terms mean.
Thus, it’s essential to consult a legal advisor to understand them and negotiate the contract – if needed.
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