Employment options - contract versus not?

[SteinUmStein]

Hello all,

I've discussed this issue via PM with a few people but wanted to open this up for discussion as it's an important area that I still don't fully understand, and I think it could be helpful for others in training/early career.

Going into the job application process, I had the notion that everyone who is employed by a company/hospital/government agency would sign a contract on the dotted line after accepting an offer. As I'm learning from potential employers and from reading on SDN, this is not the case. I was wondering if anyone could speak to the risks/benefits of a formal contract in physician employment, and whether it is safe/reasonable/advisable to accept employment without a formal contract (i.e. with an employment agreement or other document). Also, how common is it in general to be employed as a physician without a formal contract in place? This is all new territory for me.

Thanks in advance - it's much appreciated!

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[bluewelder]

I'm finding myself in a similar situation currently in searching for Urgent Care jobs. Since no one seems to be speaking up, would you mind posting the information you've learned through PM? Any advice would be much appreciated!

 

[SteinUmStein]

I don't have any specifics on how common different types of arrangements are, but I had some PM responses suggesting that both contracted positions and non-contract positions are plentiful. Some PMs recommended sticking to a contract when possible. Several faculty I've spoken with in person have listed pros/cons of a formal contract, and they are as you would expect - a contract has the potential to be more binding with potential unfavorable clauses (if you allow them, such as non-compete), while guaranteeing a kind of stability. Maybe someone can add other helpful points or guidance on this post - there was a surprising lack of information when I looked, as I thought this would be a common question for new residency grads.

 

[DJspreadsheet]

I certainly know of well-established places that don't do contracts. So it's not necessarily a scam. I guess my barometer would be how established they are. That being said, even if they aren't established, no contract means none of the potential negatives of a contract, such as the aforementioned non-compete. So worst case scenario, if they F with you, you traverse to greener pastures without any consequence.

 

[SteinUmStein]

Agreed, I know of several large hospital systems, HMOs, and academic medical centers who hire psychiatrists without a contract, and all of them have at least a few psychiatrists who have worked there for 15-20+ years. In a field like psychiatry, employers are looking to keep employees, not vice versa. Contracts can come with some definite negatives, and not only in the form of non-competes. Definitely worth considering a lawyer to review every line before signing if going the route of a contract.