Accepting a New Position as a Doctor or Dentist? Review Your Employment Contract Before You Sign

Accepting a new position is an exciting milestone. Whether you're finishing residency, joining a private practice, accepting a hospital position, or transitioning to a new opportunity, you've likely spent years working toward this moment.

It's natural to focus on the salary, benefits package, signing bonus, and start date.

But for physicians and dentists, the employment contract often contains provisions that can affect your career long after you've accepted the position.

Taking the time to review your agreement before signing can help you understand your rights, responsibilities, and future opportunities.

Why physician and dentist contracts are different

Employment agreements for healthcare professionals are often far more detailed than standard employment contracts.

Beyond compensation, they frequently address issues such as:

• Non-compete restrictions

• Productivity-based compensation

• Call responsibilities

• Malpractice insurance

• Tail coverage

• Restrictive covenants

• Partnership opportunities

• Buy-in provisions

• Termination rights

• Continuing education requirements

Many of these provisions can have long-term financial and professional implications.

Compensation is more than your base salary

A competitive salary is important—but it's rarely the whole picture.

Many physician and dentist contracts also include:

• Production bonuses

• Collections-based compensation

• RVU incentives

• Quality bonuses

• Signing bonuses

• Relocation assistance

It's important to understand how these incentives are calculated and whether there are repayment obligations if you leave the practice earlier than expected.

Pay close attention to restrictive covenants

One of the most significant provisions in many healthcare employment contracts is the restrictive covenant.

These clauses may limit:

• Where you can practice

• How long restrictions last

• Which patients you may treat

• Whether you can solicit former patients or staff

Understanding these terms before signing is essential, particularly if you hope to remain in the same geographic area.

Malpractice coverage matters

Professional liability insurance deserves careful attention.

Your agreement should clearly explain:

• Who pays for malpractice insurance

• Whether claims-made or occurrence coverage is provided

• Who is responsible for tail coverage if employment ends

These provisions can carry significant financial consequences.

Understand the path to partnership

If your employer discusses future partnership opportunities, ask whether those terms are included in writing.

Questions worth considering include:

• Is partnership guaranteed or discretionary?

• When are you eligible?

• How is the buy-in determined?

• What ownership rights come with partnership?

Verbal expectations should be supported by clear documentation whenever possible.

Before you sign...

Receiving a job offer is exciting, and it's understandable to want to move forward quickly.

But an employment agreement is a legally binding contract—not simply an administrative formality. Understanding the terms before signing allows you to make informed decisions about your future career.

Ready to review your employment agreement?

Whether you're accepting your first position after training or considering a new opportunity later in your career, understanding your employment contract is an important step before signing.

Schedule a free consultation with Attorney Arij, Esq. to discuss your employment agreement and gain clarity on the terms that could affect your professional future.

FAQs

Should doctors have an attorney review their employment contract?

Yes. Physician employment agreements often include complex provisions related to compensation, restrictive covenants, malpractice insurance, and termination rights. A legal review can help you understand these terms before signing.

Should dentists have an attorney review an employment agreement?

Employment contracts for dentists frequently address production compensation, non-compete clauses, ownership opportunities, and other important legal provisions. Reviewing the agreement before signing helps ensure you understand your obligations.

Can physician employment contracts be negotiated?

Many physician contracts contain terms that may be negotiable depending on the employer and the circumstances. Understanding your agreement is the first step before discussing possible revisions.

What should I look for in a physician employment contract?

Key areas include compensation, bonus structure, restrictive covenants, malpractice coverage, partnership opportunities, termination provisions, and any repayment obligations.