Career and Life Planning Guidebook for Medical Residents

R E A D : Commonly Asked Questions What items are open for negotiation in my contract offer? In some agreements, none of the terms are nego- tiable. In others, some terms may be negotiable, most often salary, signing bonus, and start date. Other terms that are occasionally negotiable are vacation time, relocation package, and type of compensation structure. How do I recognize if something is or isn’t open to negotiation? One of the conditions on whether or not terms of the agreement are negotiable is the market. The more in-demand the position, the more likely there will be flexibility. The geographic market may also play a significant role in whether there is room for negotiation. Opportunities in the Midwest tend to offer more flexibility than opportunities in the Northeast, and opportunities in rural markets tend to be more negotiable than metro markets. The ability to negotiate primarily depends on supply and demand — the higher the demand for a physician in a specific market and specialty, the more likely the terms will be negotiable. In addition, flexibility increases as income potential for the employer rises. Income potential may depend on the payor mix and the rate of collections on billable dollars, so procedure-heavy specialties and those with high rates of testing referrals may be more flexible Organizations with higher profit margins may also be more willing to negotiate. Do I need an attorney to help in negotiation? Attorneys may help with interpreting the language of the agreement and may have suggestions or recommendations; however, the attorney should NOT participate in negotiation. How long can negotiation go on? After you provide the terms that you would accept, the organization should be able to provide an answer quickly, usuallywithin a day or two. If the organization comes back with a counter offer, you may have one more opportunity to go back and work out some small terms. Overall, negotiation should not take longer than a few days to complete. On the other hand, delays may occur due to decision-makerswho are on vacation, or committees and board meetings scheduled two, three, four weeks away. The Art of Physician Negotiation 305 WWW.PHYSICIANCAREERPLANNING.COM