What Happens If You Leave? Building a Clean Exit Into Your Contract

By DR Advisors | Physician's Trusted Advisor

He had been in the position for eighteen months when he realized it wasn't the right fit. The culture wasn't what he'd been told. The call burden was heavier than the contract suggested. The administrative support he'd been promised never materialized.

He wanted to leave. But when he sat down with his contract, the path out was harder than he expected. His notice period was 60 days — shorter than ideal, but manageable. His non-compete covered a 25-mile radius for two years. His tail insurance was his responsibility in all scenarios. And his signing bonus had a two-year clawback — he was fourteen months in.

None of these provisions were unusual. None of them were illegal. But together, they made a difficult situation significantly more complicated — and more expensive. He could leave. It was just going to cost him.

The time to think about your exit is before you sign, not when you're ready to go.

Why Exit Planning Belongs in Your Contract Review

Most physicians approach a contract review focused entirely on what they're gaining — the salary, the benefits, the opportunity. That's natural. But a complete contract review also looks carefully at what happens if things don't go as planned.

Jobs end. Sometimes on your terms. Sometimes not. The provisions that govern your exit determine how much financial exposure you carry, how quickly you can move, and where you can go next. Getting these right before you sign is significantly easier than negotiating them after you've decided to leave.

The Physician Contract Review Worksheet includes a section on exit provisions — review yours before your session. Download the Worksheet → Physician Contract Review Worksheet

The Four Provisions That Govern Your Exit

1. Notice Period As we covered in our post on termination clauses, 90 days is the standard for without-cause termination. This is your financial runway — the period during which you continue to be paid while you search for your next position. Less than 90 days is a red flag. Make sure it's in the contract and that pay continues through it.

2. Non-Compete The non-compete defines where you can practice after you leave — geographic radius, duration, and the specific services covered. A well-structured non-compete is an inconvenience. A poorly structured one can force you to relocate, step back to a different practice setting, or leave your market entirely.

Before you sign, map the non-compete against your life. Where does your family live? Where would you realistically want to practice next? Is the radius drawn around your primary location, or does it cover every site where you provided services? These details matter.

3. Tail Insurance If you have a claims-made malpractice policy — which most private practice agreements provide — you need tail coverage when you leave. Who pays for it, and under what circumstances, is one of the most negotiable provisions in your contract. Get clarity on this before you sign, not when you're calculating the cost of your exit.

4. Repayment Obligations Signing bonuses, relocation allowances, and CME advances often come with clawback provisions. If you leave within a defined window — typically one to two years — you may be required to repay some or all of these amounts. Understand the structure: is the repayment prorated over time, or does it reset at year boundaries? Does it apply if the employer terminates you, or only if you resign?

Expert Advice: The exit provisions in a physician contract aren't pessimistic — they're practical. Every physician I've worked with who navigated a difficult departure well had one thing in common: they understood their contract before they signed it. They knew their runway, they knew their non-compete, and they knew their financial exposure. That knowledge doesn't just protect you when you leave — it gives you leverage while you're still there.

Want every exit provision reviewed before you commit? Book Your Physician Contract Review → Physician Contract Review

The Bottom Line

A clean exit starts with a well-structured contract. Notice periods, non-competes, tail coverage, and repayment obligations all shape what your departure looks like — financially and professionally. The time to get these right is before you sign, when you still have leverage to negotiate them.

Related reading: [The Termination Clause Nobody Reads — Until They Need It] | [What Is Tail Insurance — And Who Should Pay For It?] | [Non-Competes Are Negotiable — But Only Before You Sign]