3 Common Mistakes to Avoid Before Signing a Contract
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Physician contract review can be overwhelming due to the length of documents, confusing language, and legally binding terms contained in an agreement. Make sure you sign with confidence, and avoid these common mistakes.
Rushing to Sign a Letter of Intent or Full Contract
Employers may pressure you to sign before you have a chance to review the contract. Most offers come with a signing deadline, but this date can often be changed, allowing time to negotiate and revise contract terms.
Take time to evaluate your offer before signing anything, even a letter of intent (LOI). Although a letter of intent is not usually legally binding, employers will often hold you to the terms in it during the contract phase. Employers are less likely to increase the salary, ensure malpractice coverage, or change other terms that were in the LOI, because they will argue you have already agreed to them. So, before you sign an LOI, take time to review its terms, know what you want, and ask for an extension if needed.
Overlooking Duties and Responsibilities
It may seem simple, but you need to make sure your contract specifically outlines the duties and responsibilities of the position. A position titled "physician" can vary with each employment opportunity. Duties may include administration work, clinical time, APP supervision, call shifts, and much more.
What is required of you within your salary? Which shifts give you extra pay? When do you have the option to accept or deny a shift or event? Where will you be located? Can the employer require you to change locations? These are all important questions that should be asked as soon as possible, or else you may find yourself taking on more responsibilities than you thought you agreed to.
Clarifying the position with the employer is the first step. Then you must ensure the duties and responsibilities are reflected in the contract. Getting everything in writing will protect you while in the position and ensure all parties understand employment obligations. In the long run, it will keep you happier in your job, because you will know exactly what is expected of you.
Not Understanding Exit Strategies
With most employment, but especially if the job was not as expected, you may eventually find yourself wanting to leave. This is why you should understand your exit strategies before signing your contract and starting your job. Even if you choose not to negotiate or change anything in the contract, understanding termination will make you aware of future obligations and help plan for the next phase of your career.
Termination terms often include ways you can exit, notice periods, repayment obligations, and restrictive covenants. Review each section, negotiate where needed, and come to an agreement before you sign. If you don't, you may be limited to terminating only for a specific cause or stuck in a six month notice period when you want to move on. Then, there are obligations after termination that may include you repaying thousands from bonuses or breaching the contract due to incorrectly terminating, and non-competes and non-solicitation clauses will likely restrict you.
Avoid These Mistakes Now, and Be Happy in Your New Job
The contract review and negotiation phase of employment can be stressful for any physician, but avoiding these three common mistakes will help you get ahead in the process and feel more confident when you do find the right job. Don't be pressured to sign before you are ready, agree with the employer about your duties, know your exit plan, and get the job you've spent years working toward.
3 Common Mistakes to Avoid Before Signing a Contract (Merxbauer, Resolve, 8/7).
