Renegotiating Physician Contracts
Even well-written physician employment contracts present opportunities for alterations. Between health system changes, amendments to governing laws, and a physician’s age and life stage, there are plenty reasons to have a second look before your contract renews.
Negotiating subsequent physician contracts is a much different process than the first employment agreement. At this time, the physician and practice, or hospital system, has had a chance to work together, further understanding the strengths, weaknesses and value that both parties bring to the table.
Resolve’s team works on your behalf to negotiate a new contract with the provisions that matter most to you.
Resolve's Renegotiation Offers:
Review of productivity and practice financials.
Review of old contract, new contract, and negotiations.
Full compensation and benefits analysis.
Unlimited access to advisor and attorney for one year.
When to Renegotiate
A typical physician contract lasts between one and three years for hospital systems, and slightly less for group and individual practices. Generally both types will have mutual termination clauses allowing either party to opt out in 30, 60 or 90 days and will auto-renew at the end of the term if no action is taken.
Resolve recommends alerting our team of your intentions of renegotiating as soon as possible to allow our team to review your current contact and ensure no key dates are missed. As your contract approaches the end of its term, Resolve will open renegotiations to provide you with a better contract package.
Note: It’s always easier and less expensive for a hospital or group to keep an established physician than to incur the recruitment costs associated with finding a new physician.
Know the Renewal Date
As previously mentioned, physician contracts often automatically renew if no action is taken by the time of the opt-out clause. Automatic renewal directly benefits the hospital system. If you are past the auto-renew period, Resolve offers services to determine the options you have.
Prepare the Data
Resolve uses the most current MGMA compensation data to ensure you are fairly compensated in the new contract. Additional data you provide also helps in contract evaluation and negotiations, such as quality, productivity and volume.
Current Work Load
Analyze your current work load and determine if this fits where you want to be in the near future. Physicians with children or those preparing to retire may not focus on the compensation, but on the hours and call schedule. Conversely, those paying off debt obligations may want increased hours and higher compensation.