How To Negotiate Your First Contract Salman A

How To Negotiate Your First Contract Salman A. Arain, MD, FACC, FSCAI Univ. of Texas Health Sciences Center Houston, Texas salman. a. arain@uth. tmc. edu

I, S. Arain, DO NOT have a financial interest/arrangement or affiliation with one or more organizations that could be perceived as a real or apparent conflict of interest in the context of the subject of this presentation.

My History • Completed training at Ochnser Clinic in 2007 • On faculty at Tulane University between 2007 and 2013 • Private practice between 2013 and 2014 • On faculty at UTHealth (Houston) since 12/2014 • A decade of looking for the perfect job!

Medical Contracts • Thousands of physicians sign medical contracts every year • Many sign their first contract – but just as many sign their second or third contract • What you sign up for will affect all aspects of your life – biggest decision you will make

The First Job • Your first job will probably not be your last job • Average time spent at the first job: 3 years • Most common reason for leaving: lack of growth (aka failed expectations) • My take: You need to craft the ideal job for yourself – and that process starts now

Five Common Mistakes 1. Not being aware of your own expectations 2. Not vocalizing your expectations 3. Not taking time to review the contract i. e. the fine print 4. No seeking counsel (or asking for it when it is too late) 5. Not knowing your employer well enough

How To Negotiate Your First Contract 1. 2. 3. 4. Define your philosophy Prioritize your needs Take your time Take control of the negotiation process 5. Do your research; ask questions 6. Use facts not feelings 7. Know how to get out

Tips For Success 1. Know the legal terms used – Terms are often defined in the contract towards the start (italics, bold or quotations) – Contract definitions ≠ dictionary definitions 2. Look for ambiguities – and clarify them – Ambiguities in a contract are a frequent cause of litigation

Tips For Success – Don’t rely upon the employer to be fair and reasonable – Beware of vague and unclear responsibilities, for e. g. ‘call will be shared amongst all employees’ 3. Research your employer – Salary, benefits and location are important – But don’t overlook the employer’s past history and reputation

Tips For Success • Things to look for – Turnover rate – Percentage of physicians who make partner – Profit and loss history – Malpractice claims and pending litigation – Reputation of the employers and partners 4. Pay attention to the fringe benefits – Make a checklist of benefits that are open to negotiation

Tips For Success – List these in order to priority (starting with the ‘must haves’) – Remember: If you don’t ask for it, you probably won’t get it! • Things to consider q Car allowance q Vacation and sick leave q Maternity leave q CME reimbursement q Professional dues q Paid holidays q Relocation expenses q 401(k) and other retirement plans q Parking q Flex time q Loans

Tips For Success 5. Consider the restrictive covenant aka non-compete clause – Hope for the best but prepare for the worst – Components of the con-compete • Length of term • Geographic limitation • Provisions for exception 6. Protection for ‘additional income’

Parting Words This is one of the most important decisions of your life, so • Take your time • Use all resources at your disposal • Be true to yourself • Don’t be shy • Most importantly – don’t be devastated if it doesn’t work out the first time!

Thank You Salman A. Arain, MD, FACC, FSCAI salman. a. arain@uth. tmc. edu