Signing a new physician employment agreement is a big step in your career. The terms you agree to will shape your compensation, schedule, and even your ability to practice medicine in the future. While contracts can look straightforward, there are often hidden risks. Knowing how to spot red flags before you sign can save you from costly mistakes down the road.

One major red flag is a non-compete clause that is too broad. Many physician contracts limit where you can practice after leaving a job, but if the geographic radius or time period is excessive, it may seriously restrict your options. A careful physician contract review can help determine if the non-compete is reasonable or needs to be narrowed.

Another issue to watch for is unclear compensation terms. If your pay is based on RVUs, collections, or bonuses, make sure the formula is spelled out in detail. Vague language can lead to disputes or unexpected reductions in pay. Always confirm whether you will also receive benefits such as malpractice insurance, CME allowances, and retirement contributions.

Pay close attention to termination provisions. Some contracts allow the employer to terminate you “without cause” with very little notice. That can leave you scrambling to find new employment. Look for language that provides fair notice or severance protections. Confirm that you also have the ability to terminate “without cause” so that you have flexibility to leave before the end of your term.

Call coverage obligations are another area where physicians often feel trapped. If the agreement does not specify limits, you could end up with an unmanageable schedule. Make sure your duties are clearly defined and reasonable.

Finally, review malpractice coverage carefully. If you are responsible for purchasing “tail coverage” when you leave, it can cost tens of thousands of dollars. Negotiating for the employer to share this expense can make a huge difference.

In the end, the best way to protect yourself is through a thorough physician contract negotiation. Having an experienced physician contract lawyer review the agreement ensures that you understand the risks and gives you leverage to request changes. A few adjustments up front can protect your career, income, and peace of mind.

Contact our physician contract review lawyer to set up a review of your contract.