Physicians and other medical professionals are in high demand. That means these professionals have plenty of room to negotiate their own employment contract terms.
If you’re a medical professional looking to enter physician contract negotiations, don’t just sign the first offer letter that comes your way. Learn how to successfully negotiate your contract terms to get the best start to a new job or contract renewal.
Whether you’re a medical school resident or career physician, know your worth and take charge of the negotiation process.
Consider the following when reviewing new job offers.
You can get a good idea for what your salary range should be by comparing your job offer’s salary to benchmarks from reputable sources of physician compensation data, like Medical Group Management Association (MGMA) reports and U.S. Bureau of Labor Statistics.
In the United States, the average annual wage for physicians was $248,640 in May 2023.
In May 2023, the following states had the lowest average annual salary range, between $172,030 – $225,650:
In May 2023, the following states had an above-average annual salary range of $302,110 – $351,270:
The state with the highest average annual wage in May 2023 ($351,270) was Montana.
When you sit at the negotiation table, you can advocate for a higher salary or hourly pay by having the following documented and ready:
With these details ready, you can politely and confidently ask for higher pay with clear points to back up why you think you deserve better compensation.
No one but you knows your own limits. When reviewing potential call schedules and coverage, make sure they seem reasonable for you to avoid burnout.
What’s a Good Call Schedule for Physicians?
The answer to this question will vary based on who’s asking it. That said, many physicians prefer a rotating schedule that offers plenty of flexibility, with no one physician receiving an unfair distribution of hours or duties.
Know the laws and regulations of the area you wish to work in. Non-compete clauses may not always be legal where you’re at, or they may be legal with certain restrictions. Do your due diligence and refer to reputable sources like the American Medical Association (AMA) to learn more about the legality of these clauses in your area.
Which States Ban Non-Compete Agreements?
The following states have full or nearly complete bans on non-compete employment agreements for most workers:
Sign-on bonuses aren’t required, but decent ones can show that potential employers value your skillset and are making offers in good faith.
What is a Good Sign-On Bonus for Physicians?
According to AMN Healthcare’s 2024 Review of Physician and Advanced Practitioner Recruiting Incentives, the average signing bonus for physicians was $31,473.
How long is the duration of your contract? Does it line up with your short-term and long-term goals?
How Long are Physician Employment Contracts?
The initial employment contract for physicians is typically between one and three years.
While 2 weeks is standard for most resignation notices, standards are different for physicians. Most contracts have a one- to three-month notice requirement for resignations. A significantly longer or shorter resignation requirement might not necessarily be a deal-breaker itself, but it could signal a need to more carefully comb over the details in other parts of the contract.
Physician job benefits packages will vary from location to location, but most employment agreements will typically include most, if not all, of the following:
The following red flags can signal that a potential employer is not acting in good faith and could be grounds for stepping away from an offer:
Ultimately, it’s up to you to decide what’s negotiable and what constitutes a deal-breaker.
Work smarter, not harder, during the negotiation process. Keep these dos and don’ts in mind for a physician employment agreement:
When in doubt, get a second opinion from a licensed contract lawyer or a team of registered financial advisers. These professionals can help you navigate complex legalese found in employment contracts and give you an outsider’s opinion on what parts of the contract are worth negotiating over.
25 Financial’s team of financial planning and investment experts have years of experience working closely with physicians and other high-net-worth medical professionals. We work with our clients at every step of their careers, from planning student loans to managing debt to retirement planning.
Disclaimer: This article does not constitute professional advice. Information is accurate at the time of writing but may be subject to change.
Content is intended for informational purposes only and should not be considered as financial advice. Please consult with a professional financial advisor and perform your own analysis before making any decisions. It is very important to do your own analysis before making any investment based on your own personal circumstances.
25 Financial Advisors are not tax professionals. You should consult with your tax professional before taking actions which affect your tax situation.
