How to review your physician employment contract

Hand highlighting word in legal agreement, studying and reading an employment contract.

Contracts might seem set in stone, but there's often room to improve them if you know what to look for.

Benefits of contract review

Even if an employer makes it clear they don't amend contracts, you'll still want to review what they offer to know whether there are any major issues that could affect your career long-term. When you review your contract, you can help yourself by:

  • Catching major red flags that could make it hard to leave a job if it doesn't work out
  • Flagging areas for negotiating or discussing with your attorney
  • Getting an idea of the workplace environment and how good of an employer the organization is for family physicians

What to do when reviewing a contract

If you're not sure where to start when it comes to reading a contract, we've outlined the most helpful steps in review, made a simple yes and no checklist to help you review a contract and partnered with a business that offers access to attorneys specializing in physician contracts.

AAFP member exclusive: Contract review checklist

Tough-to-negotiate items and red flags are common in contracts. Use this contract review checklist to catch them all. Member login required.
Download the checklist

5 steps to successfully review the contract

  1. Read your employment contract carefully. Highlight items that appear concerning or that you don’t understand so you can review them in more detail later or with an attorney.

  2. Start an outline of issues to discuss with an attorney. This list might include your top career priorities, items you'd like to negotiate and items you have specific questions about when you read through the contract.

  3. Review all your documentation and notes for missing or inconsistent information. Going back through your notes from interviews and comparing them to details in emails, letters of intent and your employment contract is a good way to find inconsistencies or details you need to address in negotiations.

  4. Consider hiring a health care lawyer. An experienced attorney can guide you in evaluating your employment agreement and provide counsel as you prepare to negotiate with an employer.

  5. Develop a list of questions and issues you want addressed before negotiations begin with the employer.

What to know about contract review

Physician contracts share many common provisions. Download a member-exclusive checklist of questions to ask in each category. It makes it easier to focus on what's important.

Contract provisions you need to know

  • Term and termination

    This provision stipulates how your employment begins and ends. It should outline details of the length of agreement, automatic renewal or expiration, termination for cause, automatic termination, termination without cause and non-renewal termination.

  • Job duties

    Your employment agreement should clearly spell out expectations and define your essential duties, practice location and schedule. Ensure what is in writing matches your expectations. A lack of clarity in daily activities and expectations can lead to misunderstanding or conflicts.

  • Malpractice


    Be sure you understand the type of malpractice policy provided in your agreement, who is responsible for paying for the policy and how tail coverage will be paid for when your employment ends. AAFP Insurance Services Inc. can help you evaluate the provisions of your contract and understand your coverage needs.

  • Benefits

    Common benefits include paid time off, a CME stipend, AAFP membership dues and malpractice insurance. Additional benefits can include health insurance, retirement plans and professional association dues.

  • Compensation

    A number of physician compensation models exist, including salary-only, salary plus bonus, and productivity-based compensation. Your employment agreement should clearly define your compensation plan, how it is calculated and how it might change over time.

  • Non-compete

    Non-compete provisions (or restrictive covenants) are enforceable in many states. Non-compete provisions may include geographic radius, length of time, scope of practice and non-solicitation of patients, staff or vendors. The non-compete you agree to will impact your potential future practice opportunities.

  • Future equity

    For physicians joining an independent practice, a contract will ideally outline when you will have the opportunity to become an owner in the practice and the terms of ownership.

Rate your contract

See how your contract stacks up against market data for family medicine. Use a tool from AAFP partner Resolve to generate a score for your contract based on real-time data from other physician contracts. Members can use code AAFP10 for a discount on additional Resolve services.

Related blogs

Related articles

Related podcasts

Related videos