Why Physician Employment Agreements Must Be Reviewed by a Healthcare Attorney – and How to Navigate Negotiations the Right Way

For physicians and healthcare providers, employment agreements are more than just paperwork—they are legal frameworks that shape your career trajectory, financial future, and professional freedom. Yet too often, we see clients sign on the dotted line without a clear understanding of what they’re agreeing to. In both New York and New Jersey, the healthcare employment landscape is complex and increasingly competitive. That’s why having an experienced healthcare attorney review and help negotiate your employment agreement isn’t just smart—it’s essential.

At our firm, we work with physicians, practice owners, and healthcare professionals across specialties, and one thing is clear: no two contracts are exactly alike. While many agreements appear “standard” on the surface, the details hidden in fine print can have outsized consequences. Whether you’re a newly minted resident evaluating your first job offer or an experienced provider transitioning between practices, understanding the nuances of your contract—and ensuring it’s tailored to protect your interests—can save you from future legal and financial headaches.

When we review employment agreements, we focus on several critical areas: compensation, restrictive covenants (non-competes), and productivity metrics like RVUs. These clauses often carry the greatest financial and professional implications—and they’re also the most likely to be misunderstood or underexplained.

Compensation structures can be especially murky. Many contracts include base salary figures that seem attractive at first glance, but the real story often lies in how bonuses are calculated. Vague language around collections-based incentives or RVU thresholds can leave physicians working harder for less than they anticipated. We’ve seen contracts that lack clear definitions for what counts toward a bonus—or worse, leave bonus eligibility entirely at the employer’s discretion. These ambiguities can be negotiated, but only if caught early.

Non-compete clauses are another landmine. While New Jersey has traditionally taken a more flexible stance on enforceability, New York courts tend to uphold well-drafted restrictive covenants—especially when they’re narrowly tailored. The problem is, many agreements go too far, restricting a physician from practicing within unreasonable geographic areas or timeframes. We regularly advise clients on how to push back on these clauses, either by narrowing the scope or negotiating carve-outs based on specialty or location.

Beyond the headline items, there are other contract provisions that deserve scrutiny—especially termination clauses and notice requirements. Some agreements contain “without cause” termination rights that heavily favor the employer, allowing them to end the relationship on short notice while leaving the physician bound by non-competes and without a safety net. We’ve also seen severance provisions omitted entirely, or phrased in ways that make collecting them extremely difficult.

Another commonly overlooked issue is malpractice tail coverage. In both New York and New Jersey, providers who leave a practice often must secure “tail” insurance to cover claims that arise after they’ve moved on. If the contract doesn’t clarify who is responsible for purchasing that coverage, the physician could be stuck with a surprise bill that runs into the tens of thousands.

The Myth of the “Non-Negotiable” Clause

A frequent concern we hear is that employers present agreements as “standard” or “non-negotiable.” While some language may be boilerplate, that doesn’t mean it’s set in stone. We’ve successfully negotiated numerous so-called “standard” terms, from adjusting compensation formulas to softening restrictive covenants to clarifying vague legal jargon.

The key is timing and strategy. Ideally, we’re brought in at the offer letter stage—before a full contract is presented. This gives us more flexibility to influence the terms from the outset and align the structure of the agreement with our client’s goals. However, even if you’re already reviewing a full contract, it’s not too late. Employers expect candidates to raise questions and request changes. Doing so with the support of knowledgeable counsel not only protects your interests, but also signals that you take your career—and your legal rights—seriously.

Behind-the-Scenes Guidance or Direct Negotiation: You Choose

Our role as attorneys extends beyond redlining contracts. Depending on your comfort level, we can guide you behind the scenes—arming you with talking points, negotiation strategies, and legal context—or we can negotiate directly on your behalf with the employer or their counsel. Some clients prefer to take the lead in discussions, while others appreciate having us at the table. Either approach works, and we tailor our involvement to fit your style and needs.

We also understand that these conversations can feel intimidating, especially for physicians early in their careers. That’s why we aim to be both legal advisors and strategic partners. We don’t just review contracts for loopholes—we help you assess the broader picture: how a proposed agreement aligns with your long-term goals, financial priorities, and work-life balance.

In our experience, investing in legal review of your employment agreement is one of the smartest career decisions a healthcare provider can make. The cost of having a contract attorney review your offer is minimal compared to the potential financial and legal exposure of entering a poorly negotiated deal. We’ve helped clients recover six figures in unpaid compensation, avoid restrictive covenants that would have disrupted their careers, and clarify ambiguous terms that could have led to litigation down the road.

As healthcare laws evolve and employment models shift, the stakes are only getting higher. Whether you’re joining a hospital system, private group, or telemedicine startup, having knowledgeable legal counsel in your corner ensures you’re making informed decisions from day one.

If you’re reviewing a job offer, facing a contract renewal, or simply want to better understand your legal options, we’re here to help. Our team works with physicians and healthcare providers across New York and New Jersey, offering personalized, strategic advice that reflects both legal nuance and real-world industry knowledge. Let’s make sure your next move is one you can make with confidence.