3 Signs You’re Ready to Give Your Physician Contract a “Check-Up” and Negotiate Your Value
Time flies when you’re having fun…and also when you’re a busy and overwhelmed physician. It seems like just yesterday that you signed your employment contract. Typical physician employment agreements have 1, 3, or 5-year terms and often contain provisions for auto-renewal. It’s easy to miss the renewal, and let’s face it, contract discussions and negotiation aren’t always the most pleasant tasks.
I stress to our clients that going into your career with a negotiation and self-advocacy mindset is critically important. It isn’t incumbent upon your employer and/or hospital administration to remind you to renew your contract or to volunteer additional compensation and benefits. I think Jack Welch said it best: “Control your own destiny or someone else will.”
Here are the three signs you need to review your physician contract and your compensation:
#1: Your Physician Contract is Nearing Renewal or Already Auto-Renewing
First, know your renewal date and your compensation numbers. MGMA Provider Compensation Data is updated annually, and it’s robust with data for specialties, compensation, bonuses, RVU productivity, geographic region, and benchmarks. It’s always in your best interest to have your compensation, RVU productivity, and benefits reviewed with the latest physician compensation data every three years and renegotiate your contract as appropriate. Consider it a routine compensation check-up and a best practice, which will benefit you immensely over the long term.
At SCC, we can help you review your current physician contract and comb through national physician compensation data to uncover meaningful insights for your personal situation.
#2: You are Considering Other Employment Offers
Physicians consider and/or seek alternate employment offers for various reasons. Perhaps you’re unhappy in your current position, suffering from burnout, frustrated due to a lack of support staff, or simply receiving other enticing salary offers. It’s in your best interest to weigh if this is a “grass is greener” scenario and if your current contract can be updated and amended to improve your current compensation, support staff, work-life balance, whatever the case may be.
For clients considering a change in employment, we compile a detailed analysis of Current Compensation and Contract vs. New Offer, with benchmarks including Cost of Living Indicators to determine issues that can be addressed to potentially improve job satisfaction. What we know for sure is that physician turnover is expensive and disruptive for your employer. Likely, they would much prefer to negotiate with you than lose you.
Are you comparing physician employment offers and benefits packages? Get in touch with the SCC team for actionable recommendations based on the most recent physician compensation data.
#3: You are Concerned You’re Not Being Paid, or Supported, Fairly or Equitably
Your compensation should not be a mystery or a surprise. If you’re concerned that you’re not being compensated, or supported, fairly and equitably, it’s important and reasonable to address those concerns. Your employer should be able to clearly explain your compensation, and work with you to address challenges. This isn’t rocket science. The best physician compensation plans are easy to understand and articulate, and abundantly transparent. I suggest physicians take a “trust but verify” approach.
For clients with pay equity concerns, we use the latest MGMA Provider Compensation Data to do an in-depth compensation audit, comparing current compensation with the most appropriate data benchmarks. This is a great way to alleviate concerns, identify areas for negotiation, and level the playing field with employers.
Is it Time to Negotiate Your Physician Contract? We Can Help!
For your professional success, work-life balance, and peace of mind, it’s essential to have your contract routinely reviewed, to verify the latest compensation and productivity data, and negotiate your contract accordingly.
I just finished reading Adam Grant’s “Think Again,” and I’ll leave you with his astute perspective:
“If knowledge is power, knowing what we don’t know is wisdom.”
Contact us at SCC to give your contract a “check-up” and negotiate your value.
Knowledge is Power. Know Your Value.