There are three key points to keep in mind when negotiating a successful contract for a physician.
How to Successfully Negotiate a Physician’s Contract
The prevalence of chronic diseases and the aging of the population have resulted in a high demand for physician services. When negotiating a physician contract with any new employee, keep these three key points in mind.
Balancing Risks and Revenue
During any contract negotiation, both parties must balance the risks versus the revenue. When negotiating a contract with a particular physician, your medical practice or hospital must balance risks such as a lack of experience or the opportunity cost of hiring this physician as opposed to another candidate who might apply with the potential revenue that the physician can bring to the organization. If the doctor turns out to be a bad fit for your clinic, you would be out the costs of hiring and be short-staffed until a replacement physician can be hired. On the physician’s side of the contract, the doctor must balance the risk of tying himself or herself to an organization against the income that working for your hospital will provide.
Take Negotiations Step by Step
Negotiating the contract for a physician is not a sprint. Think of the process as a marathon. It will take a while, and you need to take it step by step in order to succeed at reaching the finish line. Consider each term of the negotiation as one step in the process. For example, first consider the start date when the physician will join your organization. Then, consider the scheduling, followed by the work duties, on-call requirements and end date of the contract.
Remember That Everything Is Negotiable
It is essential to remember that everything is negotiable when you are working on a physician contract. You could negotiate for anything within the law, from wages to work hours and uniforms. Prioritize what you want the most for your organization, and focus on those aspects. If you get two out of your three most desirable terms and the physician is able to negotiate for items of his or her interest, such as paid time off, flexible hours for work and family balance, or a longer daily lunch break, consider your negotiations a success.
References:
1. http://www.nolo.com/legal-encyclopedia/contract-negotiation-basics-33337.html
2. https://www.entrepreneur.com/article/248732