By Leo John
A Physician’s job/service comprises various responsibilities in the stack. Among that, the most important and even imperative part is the Physician Contract. However, here’s where that many Physicians are least comfortable with. Many Physicians are tempted by the attractive offer to accept it and get to work. However, this could lead to loss of compensation, an undesired working environment and missing opportunities.
positive negotiation and a careful review of the Physician Contract can make all this work differently! This article could change your career as a Physician , by acquiring all your needs during the Contract. Learn how to negotiate, what to look for in a Contract, and mistakes to avoid during negotiation.
What Should Be Considered Before Negotiation?
For satisfactory working conditions, you must consider many things before you ever sit at the table. Initially, you have to determine what’s most important to you, for instance, which is your priority, the right work-life balance, career advancements, and more one-on-one time with patients. Moreover, it’s advisable to include the other stakeholders and decision makers in your life as well.
Yes, you’re right! Not everything is negotiable. Of course, you’re not going to get everything that you want. In fact, you’re possibly going to need to make a list of priorities of what you actually need and what your deal makers and deal breakers are.
Experts recommend that you define your BATNA (Best Alternative To a Negotiated Agreement). This defines the minimum you are willing to accept. If you can’t get your BATNA after negotiation, it means it’s time to consider other options.
Ask the Right Questions
You’ll be an effective negotiator if you’re well-informed before negotiation. So, take the time to learn as much as you can about the potential employer and the position, by asking a bunch of questions. Initially, you may have to get out of your comfort zone to do it.
Here are Top Questions for You to Ask
- How is Compensation Structured?
- Is there a Base Salary Along with Incentives or Bonus?
- Is There a Non-Compete?
- If So, What are the Terms?
- What are the Schedule Expectations?
- Is Call Coverage Covered?
- If So, How Many Hours are Included in the Base Salary?
- What are all the Benefits offered?
Effective Tips to Physician Practices Contract Negotiation
- Know your worth
- Signing your Offer Letter is Where You Begin your Negotiation
- Read it properly
- Seek a professional for guidance
- Don’t Let the Intricate Policies trick you
- Don’t undermine your primary objective
- Always have a Backup Strategy
Determine If the Offer is Competitive
It’s crucial to evaluate the Offer’s Level of Competition before deciding whether to accept it (or make a counter offer). Insights on the patterns they are noticing among the Doctors they are staffing in your specialty and region can be shared by Lawyers, Companies, and Staffing Agencies like CompHealth that evaluate a lot of Contracts. Some businesses could also provide information on Comparative Pay from sources like MGMA.
According to Jon Appino, “We can discuss trends that we detect over time and mix it with localized data.” For instance, Boise is experiencing an outbreak of infectious disease as well as the formation of a new group. That’s not the same as if there was an infectious disease in Boise and three people had recently left their jobs or would be retiring in five years.
What to Contract Negotiate
Depending on your personal priorities, you can decide what to negotiate. A Non-Compete may not matter to you if you only want to reside in the area for a short while. How a Signing Bonus is Refunded, how you can leave, and how malpractice is covered, might be of more relevance to you. The Non-compete provisions can be more significant to you as a Doctor who plans to settle down, create a home, and start a family.
How to Negotiate Physician Contracts
Negotiating may introduce you to a new zone, basically out of your comfort zone but practically speaking, it’s well worth the effort. You may feel awkward asking for any money. Let’s see what experts say about their experiences during their negotiations. Dr. Thieszan opens up about his uncomfortable experience: “I felt awkward asking for any more money, but in the 30 seconds it took, the Healthcare agreed to $20,000 as a Sign-on Bonus. Still, that was the best 30 seconds of awkwardness I ever spent.”
From the Physician’s perspective, it’s their responsibility to negotiate, but it’s also their responsibility to keep in mind that there are several Do’s and Don’ts to consider.
Do: Make it Comfortable for the Employer
The first and foremost thing is to make the Physician Contract Negotiation as Comfortable as possible for the Employer. Ensure to check the following things: Does the Employer prefer Phone Calls or Emails for correspondence? Does the Physician perceive the Employer as being quite forthright or does the Employer like to be a little less so during Negotiations? In any case, you should emulate that Employer’s Communication Approach.
Do: Have All Your Questions Ready Up Front
It’s advisable to come up to the table prepared with all of your Questions. Return to the Employer as little as possible, bringing a List of all the Modifications you want, any Questions you have, and anything else you wish to address.This would reduce the amount of back-and-forth time for Physician Contract Negotiation.
Do: Have a Justification for What You’re Asking For
You should have a Justification for any requests for additional compensation, benefits, or special treatment. “Always have an explanation for what the Doctor is requesting. “More than just “Well, since that’s what I want” will suffice, “, says Holloman. “The Physician must explain why the Employer should agree to their request for an additional $30,000 in remuneration, if one is made. The Doctor shouldn’t request that $30,000 if they are unable to respond to that query.
Do: Obviously, Go with Positive Attitude
For a successful Negotiation, an Optimistic Outlook and willingness to make concessions are essential. “I win, you lose, or you win, I lose”, says Appino. It reads, “Let’s get there to aid patients. Let’s work together to make sure we understand each other.
Don’t: Sign a Letter of Intent Prior to Negotiation & Try to Renegotiate It
Physicians frequently make the error of accepting an Initial Offer and then Signing a Letter of Intent (LOI) before trying to Negotiate the Compensation or other Terms of the Contract. Holloman advises against doing this. “An LOI is similar to a handshake, but is not legally binding. I often argue that you would be miffed if the Company issued a Contract with a Salary of $270,000 after you Signed a Letter Of Intent with a $300,000 Compensation. However, the inverse is also accurate. You cannot approach the Employer and request $330,000 after Signing an LOI for $300,000. Therefore, it is advisable to Avoid Signing a Contract, before the end of Negotiations, whether binding or not.
Don’t: Demand Changes to Things That are Determined by Policy
FAQ's
Why Is Contract Negotiation Important for Physician Practices?
Contract negotiation is important for physician practices to ensure that they receive fair compensation, favorable terms, and incentives that align with their goals and values.
What Are Some Key Strategies for Effective Contract Negotiation for Physician Practices?
Effective contract negotiation involves researching the market, understanding the practice’s worth, preparing thoroughly, negotiating for fair compensation and incentives, and seeking legal advice.
What Factors Should Physician Practices Consider When Negotiating Contracts?
Physician practices should consider factors such as reimbursement rates, scope of services, quality measures, patient volume, and any regulatory or legal requirements.
How Can Physician Practices Prepare for Contract Negotiations?
Physician practices can prepare for contract negotiations by analyzing their financial and operational data, identifying their key priorities, and developing a negotiation strategy that aligns with their goals.
What Role Does Legal Counsel Play in Contract Negotiations for Physician Practices?
Legal counsel can provide valuable guidance and protection during contract negotiations, helping to ensure that the terms of the contract are fair and align with the practice’s interests.
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