The 5 Contract Questions Every Physician Should Be Able to Answer Before Signing

By DR Advisors | Physician's Trusted Advisor

You have the offer. You've read the contract — maybe more than once. But reading it and understanding it are two different things.

Before you sign, there are five specific questions you should be able to answer clearly and confidently. They're not trick questions. They're the baseline — the minimum any physician should know before committing to an employment agreement.

If you can answer all five, you're in good shape. If you can't — or you're not sure — that's exactly the conversation we're here to have.

The 5 Questions

Question 1: How confident are you that you understand all of your contract terms?

Not "have you read it" — confident that you understand it. There's a meaningful difference.

Most physicians who come to us have read their contract. Many have read it more than once. What they're missing isn't the words — it's the context. What's standard? What's unusual? What's a red flag versus what's just how these agreements are written?

If you'd rate your confidence below a 3 out of 5, you have real exposure. A professional review isn't a luxury at that point — it's a risk management decision.

The Physician Contract Review Worksheet walks you through a structured self-assessment before your review session. Download the Worksheet → Physician Contract Review Worksheet

Question 2: Do you know your exact compensation in Year 1 — and can you reasonably estimate Year 2?

Year 1 is usually straightforward. Most offers lead with a base salary or a guaranteed draw, and that number is easy to find.

Year 2 is where it gets complicated — and where most physicians are caught off guard. When the draw period ends and productivity kicks in, the formula that determines your income can look very different from the number you negotiated. RVU thresholds, conversion factors, and panel build timelines all affect what you actually take home.

If you can't estimate Year 2 with reasonable confidence, you don't have a full picture of what you're agreeing to.

Question 3: Do you have at least 90 days for a no-cause termination notice period?

This is one of the most negotiable provisions in a physician contract — and one of the most frequently overlooked.

Either party can invoke without-cause termination for any reason. The notice period is what protects you financially while you figure out your next step. The standard is 90 days. Anything less leaves you exposed. Anything significantly more can work against you too — if you want to leave, you're bound by the same notice requirement.

Ninety days is the floor. Make sure it's in your contract.

Question 4: If the position is a poor fit, can you live with your non-compete?

Nobody signs a contract expecting to leave. But the non-compete is written for exactly that scenario.

Geographic radius, duration, and the specific services covered all determine whether your non-compete is a manageable inconvenience or a career-altering constraint. Depending on your specialty, your market, and your family situation, a poorly structured non-compete can force you to relocate, take a significant step back, or leave the area entirely.

Non-competes are negotiable before you sign. Review the terms now — while you still have leverage.

Question 5: If you leave for any reason, will the employer pay for tail coverage?

Tail insurance — also called a reporting endorsement — covers claims filed after your policy ends for incidents that occurred while you were covered. If you have a claims-made malpractice policy and you leave, you need it.

The cost can run tens of thousands of dollars. Who pays for it, and under what circumstances, is one of the most financially significant provisions in the entire contract. Some employers cover it if they terminate without cause. Others make the physician responsible in all scenarios. A few cover it regardless of how the relationship ends.

Know what your contract says before you sign — not after you're negotiating your exit.

Expert Advice: These five questions are a diagnostic, not a checklist. Answering "yes" to all five doesn't mean your contract is physician-favorable — it means you have the baseline covered. The real work is in the details: how the language is written, what's defined narrowly versus broadly, and where the employer has given themselves discretion they shouldn't have. That's what a professional review surfaces.

Can't answer all five with confidence? That's what the review is for. Book Your Physician Contract Review → Physician Contract Review

The Bottom Line

These aren't trick questions. They're the baseline — the minimum a physician should understand before committing to an employment agreement. If any of them gave you pause, that's not a reason to panic. It's a reason to get clarity before you sign.

Related reading: [What Does a Physician Contract Actually Cover? A Plain-English Breakdown] | [The Year 2 Trap: Why Physicians Earn Less Than They Expected] | [What Is Tail Insurance — And Who Should Pay For It?]