Don't worry you can unsubscribe at any time! In negotiating a physician contract, it can be easy … You do NOT want to lock yourself into a contract that doesn’t serve you or your needs. Some contracts renew automatically, using the evergreen clause, Stagg Elliott writes, unless you or the health system initiates terms of renegotiation. A contract is just a vehicle to set expectations, but understanding those expectations is very important. But the reality is that these arrangements often do not go as intended. The Steps of Negotiating Your Physician Employment Contract Every contract negotiation goes through the same basic formula. The life insurance, however, was minimal and no group disability is offered so I did purchase these on my own. Other benefits of Resolve’s physician contract review service includes: Flat-rate pricing, with no additional or hidden attorney fees. 4. We feel embarrassed. How do you feel about your current contract? It’s about your situation and not anyone else’s. I’ve had many medical students shadow me in my office over the years and I always sit down with them and discuss potential income and lifestyle. Increasing physician compensation is one of the best ways to accelerate your financial independence. My Stock Portfolio Is Better Than Your Financial Advisor's, Physician Side Gigs to Make You Passive Money, How to Screen & Analyze Investment Properties the Right Way. Don’t miss the opportunity to ask for what you want. Many will tell you that it is a standard part of the contract, however everything is negotiable. What mistakes have you made in the past? Are you nervous about negotiating your first (or next) contract? I’m not saying my contract is perfect. That’s $22,800 additional money that will grow tax free via compound interest that is basically a part of your contract. By the end of my negotiations, I had so many eyeballs, notably my own, review the contract so many times that the lawyer didn’t have a ton to add. Still Need a Written Personal Financial Plan? episode recap is all about finding a job in medicine. increase your income or minimize your expenses. For those physicians in your last year of training, job season is coming up in a hurry. I negotiated a contract with a base salary that represented 96% of my total salary. And, for the first time, you will be in a position to actually negotiate your contract. Make a list of the unique skills that you have that make you more valuable than an average physician in your field. You never want to go into a job thinking that it will not work out. The remaining 4% was performance-based. “After a physician figures out the renewal date, he or she needs to collect data to support the compensation requested, whether or not it is higher than the original salary,” Stagg Elliot says. This is obviously such an important contributor and factor in your financial and overall well being. So just ask. These numbers should be available from your employer. Writes Stagg Elliott, “Contract experts say administrative duties can creep in, especially as hospitals and large health systems turn to physicians to help establish accountable-care organizations and other novel care delivery models. Everyone will prioritize different things in their contracts. This will reduce or eliminate the need to buy expensive individual policies on your own dime. You can be sure that the administrators negotiating the contract with you know exactly how much value the average physician in your position brings. But it fits me really, really well. I would encourage all medical students/residents to politely ask about future income, lifestyle, and what to watch out for in signing a contract. A contract discusses the physician's time and job responsibilities, along with how they will be compensated, what benefits are provided, and what happens when that employer-employee relationship is terminated. As one expert said, “Figure out what has worked and what has not worked. Compensation, schedule, and contract duration are typically negotiable. If they balk at doing this, they either promised you something that they can’t guarantee or are not operating in good faith. Currently, volume still dominates how a physician is paid, but don’t be shocked to see that change. Once you are in that range in negotiating your contract, you can get further into the details. It also dovetails nicely off Read more…, As a reminder, here at The Prudent Plastic Surgeon, I’m going to be doing something new. Episode #12: Finding A Job in Medicine, Sorta Random Sunday: My Quest to Be Healthier. Also find out if your employer offers a Health Savings Account (HSA). 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