Things You Need To Know About The Physician Employment Agreement

 Employment contracts and compensation can sometimes be difficult to understand. So whether seeking employment at an academic medical center, hospital, group practice, or in some other setting, you must fully understand your physician employment agreement to negotiate alternatives or discuss different options. Below are a few important things that you must understand before signing your employment contract. 

Understand the Compensation Model 

It is crucial for you to understand the compensation model. Generally, a contract can have two types of compensation models, which are as follows:

• Variable Compensation Model: When determining salary, this model uses specific formulas to explain a physician’s performance. Physicians who are more experienced get this type of compensation. 

• Fixed Compensation Model: This type of model focuses on a set salary and does not depend upon a physician’s performance. The fixed compensation model is mostly designed for new physicians.

You should thoroughly understand your compensation model and be comfortable with the way it’s structured. If you are unable to figure it out, ask someone to guide you using numeric examples. Additionally, before you sign any physician employment agreement, you should be familiar with the median wage rate of a physician in your regional area. 

Remember, if you do not know the worth of your skills in the local market, you would also not know whether the salary provided by the employer or practice is fair enough. All in all, make sure you are aware of all the factors that impact your income. 

Know Your Obligations

As an employed physician, the agreement must contain a detailed explanation of what is required of you on the job. This covers the number of hours you are supposed to work, the type of medicine being practiced, and administrative or outpatient care duties. Even though it may seem basic, knowing your obligations and responsibilities will help you have a successful career as a physician. 

Learn About Your Compensation Benefits

Benefits contribute positively to your basic compensation and can be a major factor determining how content you are with your new job. Knowing the benefits included in your compensation is an essential step towards completely understanding your employment agreement. 

Some of the major benefits include payment of student loans, payment of dues to professional societies, payment of your licensing fees, time off, disability insurance, liability insurance, and funds to complete continuing medical education requirements. 

Consult an Expert 

You may feel that hiring or consulting a lawyer to review your agreement is an additional cost. However, the impact of signing a long-term agreement can be way heavier on your pocket and career. 

So whether you are looking for a medical office space for lease or planning to join a new position as a physician, an experienced healthcare lawyer can help you identify and resolve tricky contract terms before it becomes a cause for concern.