UNDERSTANDING PHYSICIAN EMPLOYMENT CONTRACTS AND COMPENSATION AGREEMENTS
Employment compensation and contracts can be difficult to understand. Whether seeking employment with a group practice, hospital, academic medical center or other setting, a physician must understand employment contracts to properly evaluate the actual employment offer. A typical employment contract can contain items that seem harmless until you look further, or you might find yourself in hot water when an unforeseen event triggers certain contractual obligation. Your employment contract is an important legal document that dictates how you practice and how much you get paid.
Understand Your Compensation Package
- Fixed compensation is a set salary not dependent upon a physician’s performance. This model is often used for new physicians.
- Variable compensation models use formulas to account for a physician’s performance when determining salary. More experienced physicians typically receive this type of compensation.
- Equity purchase option and path to partnership
- How is production-based bonus calculated? Productivity by RVUs, net collections, or gross charges? Will you have access to collection records to verify your bonus pay?
- Who pays for licensing fees, professional dues, CMEs, liability insurance, and disability insurance? Direct payment versus reimbursement.
- Vacation and sick days, holidays, CME days, and sabbatical
- Health insurance – contributory versus non-contributory
- Pension plan and other retirement benefits
- Educational loan forgiveness