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Article

6 Contract Negotiation Tips for New Ob-Gyns

Amanda Spencer
January 26, 2023 • 4 min read
contract negotiation ob-gyn Salary

Negotiating your employment agreement is an integral part of the hiring process. But it can also be intimidating and leave new physicians wondering where to start.Together with contract review team Resolve, we’ve compiled six tips to help empower Ob-Gyn residents and new fellows as you prepare to take the next steps toward your dream job.

1. Know the Market

When it comes to compensation, you’ll want to ensure that the package you’re being offered reflects current trends. Check the salary data for Ob-Gyn physicians in your location so you can be aware of the market for positions like yours. If your offer is less than what other physicians receive in your area or for your specialty, you should negotiate for fair compensation.

While it’s important to advocate for your needs, remember that your number should remain aligned with fair market value rather than reaching too far above the median. If your employer sent a low offer, this might still mean there’s room to ask for a considerable increase. Therefore, knowing the average for your area and specialty can help you confidently enter a compensation discussion.

2. Make Sure the Language Is Clear

Contracts sometimes work in broad language rather than specifics, allowing employers to change certain terms in the future. For factors like scheduling, call hours, and work location, make sure that the contract is specific and meets your needs from the beginning.

Be cautious of vague wording like “hours to be defined by the employer” so that you don’t end up working hours you didn’t consent to. The same goes for your location. Your contract should expressly state where you’ll be working so that you won’t have to work at satellite locations unexpectedly.

3. Look Out for Non-Compete Clauses

Non-compete clauses only come into play when you need to leave a job, but it pays for new Ob-Gyns to address them from the get-go. This type of clause is intended to keep you from taking patients or staff with you if you decide to leave and work for a local competitor; however, they can be written too harshly and can sometimes leave physicians feeling trapped.

The American Medical Association’s (AMA) Code of Medical Ethics warns physicians against entering restrictive covenants that could go too far in limiting their ability to practice medicine for a certain duration of time or in a specific location if a contract is terminated. For example, if every nearby potential employer is restricted as a competitor, you could be forced to move to a different city if you want to change jobs.

Try to negotiate a non-compete clause out of your contract, or at least have the time frame and radius reduced.

4. Define a Path to Partnership for Private Practice

If you are joining a private practice, it can be beneficial to delineate your, and your employer’s, expectations regarding partnership early on. Private practices will not always outline a road to partnership in your employment contract, so if this is a goal, it’s important not to assume it will be on the table down the line. During the negotiation process, clearly defining how and when you can attain partnership can help you and your employer avoid miscommunication later in your tenure.

5. Check if Your Malpractice Insurance Has Tail Coverage

Tail coverage can be crucial if your malpractice insurance is a claims-made policy. This inclusion protects you from any claims made against you after leaving a job, but it’s not always offered. If your contract offers claims-made malpractice insurance, either negotiate for your employer to cover the cost or consider purchasing tail coverage yourself.

6. Inquire About a Relocation Bonus and Student Loan Repayment

If a relocation bonus is not initially offered, you can still ask about it as an option. Most practices have funds allocated for relocating new hires that may be made available to you—even if you don’t technically have to move for the job. For example, if you are continuing employment at the same place you completed training, it may still be possible to receive a relocation bonus.

Additionally, substantial medical school loans are a reality for many new Ob-Gyns. If this benefit is absent, asking your employer about the option for a repayment plan is another way to add value to your contract.

Contract negotiation for doctors—both new and tenured—can seem overwhelming. But using the above tips to advocate for your needs early in the employment process can go a long way towards building a healthy relationship with your employer and ensuring your happiness and success as an Ob-Gyn.

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