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You've got the offer, but is it everything you dreamed of? The Contract Negotiation community is designed with a young physician in mind. Don't be afraid to ask for what you want. Get insight into the world of contract negotiation through our helpful articles and questions.

Contract Negotiation Contributor

Wesley Millican, MBA
Founder and CEO
CareerPhysician

Most Recent Articles

Employment Agreement negotiations from the Practice Perspective

Employment Agreement negotiations from the Practice Perspective In any game, there is always a great advantage to getting inside the head of your opponent. Although employment agreement negotiations should never be approached from an adversarial standpoint, we think you will benefit greatly from an appreciation for what motivates an employer during the recruitment and job offer negotiation process. Whether you are considering joining a large ...

by admin on 02-28-2011
Strategic Employment Contract Negotiation Tips

It's a Process There are four, sequenced stages to any successful employment contract negotiation : the pre-agreement process writing the agreement negotiating the agreement closing the deal At each stage in the process you'll want to exert as much control and project as much confidence as possible while keeping a positive, good faith posture throughout. From a broad strategy perspective, this approach will greatly enhance your ability ...

by admin on 02-27-2011
Employment Contract Negotiation Tactics

In a companion Career Physician article , we offer a range of suggested tips and strategies for managing the process of a successful e mployment agreement and physician contract negotiation . Our approach in that article was a broad, strategic overview of employment agreement negotiations. In this article we focus more specifically on the actual negotiation itself, offering tactical advice on how to get the best deal you can. Dealpoints ...

by admin on 02-27-2011

Most Recent Terms

Standard Valuation

Valuation of an asset (valued in terms of the context in which this term appears) based on normal valuation methodologies (representing standard market practice) given the nature and stage of development of the asset being valued, providing certain principles...

by admin on 05-05-2009
Salvage Value

The estimated value of an asset at the end of its useful life. The acquisition cost minus salvage value yields the total amount that an asset is depreciated over its useful life. http://www.blackwellpublishing.com/zelman/glossary.htm

by admin on 05-05-2009
Signing Bonus (Sign-on Bonus)

An award, usually monetary, given to new employees who have just joined the company. This award serves two purposes: to establish goodwill and to buy out any compensation "left on the table" from a previous employer. http://www.salary.com/advice...

by admin on 05-05-2009
Nonsolicitation Clause

A contract or agreement entered between an employer and a physician which is designed to deter the physician from inviting patients or other employees to move with him or her into a new practice for a certain period of time. http://www.aafp.org/fpm/20000700...

by admin on 05-05-2009
Nose Coverage

The opposite of Tail coverage, although it fulfills the same need. Nose coverage most commonly provides prior acts coverage for insureds who are moving from a claims-made coverage form to an occurrence coverage form. It is provided by the replacement...

by admin on 05-05-2009
Production Bonus

A monetary award under which a certain percentage (perhaps 20%) of the new physician's production exceeding a pre-stated threshold is added to the base pay. One expert suggests this bonus be 2.5 to 3 times the base salary If the base salary is $100...

by admin on 05-05-2009
Letter of Intent

1. A written preliminary contractual document acknowledging a willingness and ability to do business. 2. A document stating serious intent to carry out certain business activities http://www.thefreedictionary.com/letter%20of%20intent

by admin on 05-05-2009
Nibbling

Art of asking for a little bit more after the deal has already been verbally closed. A good example of this technique is how car salesmen add on accessories after the decision has been made to buy a car. "Negotiating Skills for Contracting Your Recruited...

by admin on 05-05-2009
Incentive Compensation

A plan or agreement that is designed to tie pay to performance and achieve gains in worker productivity. Such compensation plans can take the form of merit pay, bonuses, profit sharing, corporate stock ownership, or commissions. Depending on the type...

by admin on 05-05-2009
Employment Agreement

A binding contract or document setting the terms of employment between employer and employee that is enforceable by law and often addresses compensation, severance pay, and other significant terms of employment. http://www.thefreedictionary.com/employment...

by admin on 05-05-2009
Golden Parachute

Payment or compensation package negotiated in advance and given to a top executive who loses his or her job as a result of a merger or acquisition. Golden parachutes usually include a severance package, bonuses, the continuation of benefits, vested stock...

by admin on 05-05-2009
Change of Control Clause

A provision in a golden parachute used to define a specific amount that will be paid if there is a takeover of the company or some other change in control or leadership. See also golden parachute. http://www.salary.com/aboutus/layoutscripts/abtl_display...

by admin on 05-05-2009
Buy-In Arrangement

An arrangement whereby an employed physician purchases an ownership interest or stake (partners or shareholders) in a group practice. "buy-in" arrangement should also be considered in the employment agreement. This buy-in option often is triggered...

by admin on 05-05-2009

Most Recent Questions

Under Murphy's Law, what can I expect to go wrong during employment agreement negotitations?

Twelve of the most common negotiation mistakes that might jeopardize a deal are: 1. Recruitment package is not finalized, but the candidate is ready to talk seriously 2. Letter of intent is not finalized 3. The final working agreement (contract) is not...

by admin on 06-08-2011
How aggressive can I get when negotiating the terms of an employment agreement without jeopardizing a possible long-term relatinship?

Believing that you may be pushing too hard in your contract negotiations is a common concern. You may fear that hard feelings will develop even before employment begins. But if you are convinced of your value. fight for the terms you feel are important...

by admin on 05-15-2009
When negotiating employment terms with my practice partners, isn't a verbal agreement just as valid as a written contract?

When negotiating employment terms with a small group practice, it may be up to you to insist that your agreement be put into writing. By all means don't just let it slide. A verbal agreement might suffice for as long as everyone is happy and the powers...

by admin on 05-15-2009
I'm determined to recruit a particularly talented physician, but I need some serious leverage in order to lure him in. What can I do?

When trying to lure a valued physician into your practice, first determine what deal elements are most importantn to them. Is is base compensation or equity and long-term returns? Are they motivated more by life-style value or financial? Find out as much...

by admin on 05-15-2009
When it comes to the nuts and bolts elements of a complex employment agreement I have a hard time beleiving that getting a true "win-win" deal is possible, even if it is desirable. Am I wrong?

Win-win is definitely achievable, but only when both parties enter into negotiations in good faith and both with a clear and dfensible idea about what their deal-breaker issues are. Compromise and give and take are essential, but both parties must be...

by admin on 05-15-2009
I've hear that a letter of intent is non-legally binding. If that's true, then why should I ask prospective partners or employees to sign one?

Some may view a letter of intent as a "casual/non-binding" document, however certain provisions within the document may have legal effect. Many letters of intent state that the parties agree to engage in good faith negotiations of the terms...

by admin on 05-15-2009
With very little experience in business negotiations what can I do to hold my own and get the best deal for me?

Remember, you are negotiating all the time during the recruitment process, and there are predictable responses to the maneuvers that take place in a negotiation. 1. If you the physician out who the real decision maker is within the employer's organization...

by admin on 05-15-2009
I need a plan for seeing the fewest candidates possible for a position, but I still want to be sure I am selecting from a pool of only top talent.

If you should consider working with an exectuive search rectruiter / head hunter that you trust and has come personally recommended. They will take much of the legwork out of the initial candidate search and could increase your odds of selecting the right...

by admin on 05-15-2009
What kind of information should I include in the package of information I'm preparing for inquiring prospective candidates?

When mailing information to interested candidates, include an overview of the practice’s specialty, geographic location, history, ancillary services, backgrounds of the current physicians, types of equipment used, support for continuing medical...

by admin on 05-15-2009