When a new job offer comes along, most doctors zero in on compensation, including salary, signing bonuses, or relocation packages. But your physician employment contract is far more than a number on a paycheck. It governs your day-to-day obligations, sets financial expectations, and can even limit where you’re allowed to work in the future. If you sign without a thorough physician contract review, you could be agreeing to terms that hurt your career.

Below are five common red flags physicians should watch for before signing an employment agreement.

1. Restrictive Covenants That Limit Your Career Options

Many physician contracts include non-compete clauses or non-solicitation provisions that restrict where and how you can practice after leaving an employer. Some are so broad they could force you to relocate or leave behind your patient base. Always check how wide the restricted area is, how long the restriction lasts, and whether your state even enforces physician non-compete agreements.

2. Unclear or Unfair Compensation Terms

A generous salary offer may sound great, but the fine print can tell a different story. Many physician employment agreements tie pay to productivity metrics like RVUs, which can reduce your income if targets aren’t realistic. Some bonuses may also need to be repaid if a physician leaves employment for whatever reason before the end of a certain time period. If the language around bonuses, incentive pay, or hybrid compensation models isn’t crystal clear, you may be taking on more financial risk than you realize.

3. Tail Coverage That Becomes Your Burden

Medical malpractice insurance is a must — but many contracts require physicians to pay for their own tail coverage when they leave. Depending on your specialty, that cost can reach tens of thousands of dollars. Find out whether your employer will cover this expense in certain circumstances, or whether an occurrence-based policy could eliminate the need for tail coverage altogether. You also want to ensure that your policy limits are sufficient such that you are not underinsured for potential malpractice claims against you.

4. Vague Call Schedule or Workload Requirements

Call coverage and patient volume expectations can dramatically impact your work-life balance. Unfortunately, many contracts leave these obligations undefined or give employers too much leeway to change them later. Make sure your physician employment agreement spells out how call is shared and whether limits are placed on required clinic or hospital hours.

5. One-Sided Termination Clauses

Some contracts allow employers to terminate physicians without cause on very short notice — sometimes just 30 days — while requiring physicians to give much longer notice to resign. Look for termination provisions that are balanced and give you enough time to transition patients or protect your income if you’re unexpectedly let go.

Why Every Physician Needs a Contract Review

These are just a few of the most common pitfalls. Every physician contract is unique, and small details can have major consequences. An experienced physician contract lawyer can help you identify hidden risks, negotiate fairer terms, and protect your career flexibility.

Before signing your next physician employment agreement, have it reviewed by an attorney who focuses on physician contracts. It’s an investment in your career, your financial security, and your long-term future.

Contact us now to review your contract and understand any red flags in your employment agreement.