How to Evaluate a Job Offer as a Doctor

Starting a new position is an exciting milestone, especially for physicians entering the workforce after years of education and training. But evaluating a job offer as a new doctor requires more than a quick glance at the base salary.

Physician employment contracts can be complex, often packed with clauses and compensation models that have long-term implications for your finances, career growth, and lifestyle. Understanding the full scope of what’s being offered—and what’s not—is key to making an informed decision.

This guide walks through the essential elements of a physician job offer and how to assess both its immediate value and its long-term fit.

Understanding the Structure of a Physician Job Offer

Before reviewing individual line items, it’s important to understand the common components of a physician job offer and how they typically function.

Base Salary and Compensation Models

Your base salary might not tell the full story. Many employers use different compensation models:

Fixed Salary: A set annual amount, typically offered in the early years of practice or during guaranteed periods.
RVU-Based Compensation: Pay is tied to productivity, measured in Relative Value Units. Common in hospital settings.
Collections-Based Compensation: Pay is based on the revenue you generate, more common in private practices.

Each model has pros and cons. Fixed salary offers stability, but RVU or collections-based plans can offer higher upside with more risk. Be sure you understand which model applies to your offer and when it might shift.

Bonuses and Incentive Pay

Bonuses can be enticing, but they often come with conditions. Types of bonuses may include:

Signing Bonus: Paid upon joining, but often requires you to stay for a minimum period.
Productivity Bonus: Based on hitting RVU or patient volume targets.
Retention Bonus: Offered to encourage you to renew your contract or stay through certain milestones.
Quality-Based Bonus: Tied to patient outcomes or satisfaction metrics.

Ask for clear documentation on how these bonuses are calculated and paid.

Benefits and Perks

Don’t overlook the extras, as they can add significant value to your overall package. Common perks include:

Health, dental, and vision insurance
Retirement contributions (e.g., 401(k) match)
Continuing Medical Education (CME) stipends
Relocation assistance
Housing allowances or signing stipends
Loan repayment support

Evaluating Total Compensation, Not Just Salary

A high salary can be undercut by poor benefits or hidden costs. That’s why total compensation is the better metric.

Malpractice Insurance and Tail Coverage

This is a critical inclusion for any physician contract.

Claims-Made Policy: Only covers you while the policy is active. You’ll need tail coverage if you leave the practice.
Occurrence Policy: Covers claims from the period when the policy was active, regardless of when the claim is made.

Tail coverage can cost tens of thousands of dollars. Clarify who is responsible for this payment—you or your employer.

Paid Time Off, CME, and Scheduling Flexibility

Ask about vacation time, sick leave, and CME allowances. Scheduling flexibility also plays a big role in quality of life.

Are weekends or holidays required?
Is there built-in time for family, personal appointments, or recovery from call duty?

Retirement and Long-Term Financial Benefits

Review whether the employer offers:

Matching contributions to a 401(k) or 403(b)
Access to a pension plan
Deferred compensation or profit-sharing

These benefits can significantly increase your long-term financial security, especially if you plan to stay for several years.

Physician’s Resource Services helps new doctors navigate employment contracts, evaluate total compensation, and plan for long-term success. Explore our financial planning services to make your next career move with clarity and confidence.

Our Financial Solutions

Workload and Work-Life Balance Considerations

Salary is only one part of evaluating a job offer. Sustainability matters.

Call Schedule and Clinical Expectations

How often are you on call? Is it shared equitably? Be sure to ask:

Is there night or weekend coverage?
How are emergencies or inpatient care handled?

Overly demanding schedules can lead to burnout, even with great compensation.

Administrative and Non-Clinical Responsibilities

Physicians are expected to handle a growing amount of administrative work. Clarify:

Time allotted for documentation and EMR
Meeting requirements
Non-clinical committee participation

Too many non-clinical obligations can detract from patient care and personal time.

Legal and Contractual Elements to Review Carefully

A well-written contract protects you and defines your limits.

Non-Compete Clauses

Non-compete agreements restrict your ability to practice in a certain area after leaving the job. Key considerations:

Radius and duration (e.g., 20 miles for 2 years)
Applicability to your specialty
Impact if the contract ends early

Overly broad non-competes can make relocating or changing jobs difficult.

Termination and Renewal Terms

Review:

How long the contract lasts (e.g., 1, 2, or 3 years)
What notice is required to terminate the contract
Whether severance is included

You’ll also want to understand how the contract renews and under what terms.

Partnership Track or Equity Opportunities

In private practice or group settings, partnership may be offered. Ask:

Is partnership automatic or competitive?
What is the buy-in amount?
Will you have voting rights or management responsibilities?

Equity or ownership can increase your earning potential, but also your risk.

Evaluating Career Growth and Professional Development

A good job supports your long-term ambitions, not just your next paycheck.

Mentorship and Collegial Support

Consider the culture of the practice:

Will you be mentored or left to figure it out alone?
Are senior physicians approachable and supportive?

A collaborative environment often leads to better outcomes and job satisfaction.

Opportunities for Advancement

If you’re interested in teaching, research, or leadership, evaluate:

Academic appointments
Departmental roles
Administrative leadership pathways

Make sure the organization aligns with your career aspirations.

Creating a Job Offer Evaluation Framework

A consistent process makes it easier to compare options and make informed choices.

Step 1: Define Your Personal and Professional Priorities

Before evaluating offers, ask yourself:

What kind of lifestyle do I want?
Do I want to live near family?
Do I prefer academic or private practice?
What kind of clinical load am I comfortable with?

Knowing what matters most will help you avoid “shiny object syndrome.”

Step 2: Create a Scoring or Ranking System

Use a spreadsheet or worksheet to rank job offers based on key criteria like:

Compensation and bonuses
Call schedule
Location
Growth potential
Work culture

This helps you compare apples to apples.

Step 3: Seek Expert Review Before Signing

A physician-focused contract attorney or financial advisor can:

Identify red flags
Help you negotiate terms
Provide perspective on what’s standard in your specialty or region

This small investment can save you from years of future stress.

Choose the Role That Aligns With Your Life and Goals

Evaluating a job offer as a doctor is about more than income. It’s about career fit, personal well-being, and financial stability.

By carefully reviewing the compensation model, legal clauses, benefits, and lifestyle factors, you can choose a role that supports your goals today and prepares you for the future.

Take your time, ask the right questions, and don’t hesitate to seek guidance from an experienced partner like Physician’s Resource Services. Your future self will thank you for making a smart, confident choice now.

This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation. All information contained herein is derived from sources deemed to be reliable but cannot be guaranteed. All views/opinions expressed in this article are solely those of the author and do not reflect the views/opinions held by Advisory Services Network, LLC.

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