March 14, 2025
Negotiating Contracts: Ask the Right Questions
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Evaluating a potential job and employer is all about asking the right questions. The more answers you can find, the better equipped you will be to negotiate a contract and make the final decision to sign or not. You obviously want to know your salary, benefits package, or paid time off. However, there are other inconspicuous terms of employment that you'll want to know about sooner rather than later. Here are a few questions to ask your future employer.
What are the other physicians like, and how do you fit in?
Getting to know who you would be working alongside will absolutely give you a better idea of how the practice functions. If you're able to speak with physicians and other current employees directly, you could also gain some insight into what they do or don't like about their workplace.
Most importantly, you want to understand where you fit with the other physicians from a scheduling standpoint. The way they are scheduled will affect when you work, and vice versa. Find out how many other physicians are working and how you share call time with them. Ideally, call time should be equal and rotating between all physicians involved. Whether or not this is the case, also investigate capping your call time to avoid taking an unnecessary amount.
Finally, know what happens when another physician must be absent. Will there be a backup, or will you have to pick up the slack? Similarly, what happens if someone leaves the practice entirely? Find out how the employer plans to handle these situations, and ensure your contract protects you from taking on any excess workload.
What patient volumes can be expected?
Production bonuses are great, but only if you can meet the threshold. When your earnings are dependent on the number of patients you see, you must either see more patients or lower the expectations defined by your employer. While the former is mostly out of your control, the latter can be changed in your employment contract.
Inquire about patient volumes early in your talks with an employer. If you get the chance, ask other employees as well, so you get a more neutral view of the situation. Once you receive a contract, if you know what volumes to expect, you can determine whether the proposed bonus rate and threshold are reasonable. You don't want to sign a contract with a bonus threshold you will never realistically reach.
What happens in the event of a buyout?
Questioning these more unassuming contract details helps you prepare for the "what-ifs," and a buyout is a big what-if to plan for. Even if it seems unlikely, do not write off the possibility of a buyout or acquisition taking place.
Your contract should include specific language designed to protect you in such situations. For example, if your contract includes a non-compete, that clause should be written in a way that it is waived in the event of a buyout. When you sign the contract, you agree to non-compete terms relative to your employer's current location(s). You don't want the clause applied to additional locations owned by an acquiring company, and you may want to leave the practice altogether if you don't like the new direction. Being unrestricted by a non-compete allows you the freedom to change jobs without changing location.
Malpractice tail coverage also becomes a topic of concern when ownership changes. It's ideal that your employer is responsible for 100% of your tail coverage costs if a buyout happens, provided they aren't already. Like waiving the non-compete, this gives you additional flexibility if you decide to leave the practice, since you won't have to worry about paying for tail coverage.
Additionally, ensure your path to partnership is uninterrupted, and preferably accelerated as well. You don't want to put a lot of time into a practice, get close to obtaining partnership, and then have a buyout postpone or even negate everything. The effects of a buyout on your partnership should also be specified in your contract.
It's all in the details
When searching for a new job, you can save a lot of time and avoid trouble down the road by ironing out the small details early. Don't be afraid to ask questions, even if they regard situations that seem insignificant or unlikely to happen. Some employers may downplay the possibility of a buyout or staffing changes. Even so, after you've found sufficient answers to your questions, ensure that you have protection written into your contract. Although you may be able to renegotiate later, it's always best to fully understand your employment terms and negotiate them before you sign.
--This article is brought to you by WSMA's preferred partner, Resolve, providing WSMA members discounts on employment contract review services and salary data.
You may also find WSMA's Career Center of interest in your job search. Find out more here.