Financial Residency Grand Rounds: Contract Term Lengths with Jon Appino of Contract Diagnostics - Do They Matter?
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Mar 27, 2023 Jon Appino, founder of Contract Diagnostics and physician employment contract expert, breaks down how contract term lengths influence salary guarantees, signing-bonus repayment, tail coverage, and termination windows. He also touches on noncompete developments and how credentialing delays can push start dates. Short, practical breakdowns with real-world considerations for physicians navigating offers.
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Check What Compensation Is Tied To Term Length
- Do confirm which contract provisions are tied to term length before signing.
- Jon Appino warns signing bonuses, relocation repayment, and tail insurance often tie to multi-year terms and can create big repayment risk if you leave early.
Long Term Contracts Can Be Functionally Short
- Insight: Term length alone often doesn't determine job flexibility because most contracts include no-cause termination.
- Jon explains an evergreen three-year contract with a 90-day no-cause clause functions like a rolling short-term commitment.
Negotiate Guarantee Duration Before Production Pay Kicks In
- Do negotiate guarantee length when compensation will switch to production.
- Jon advises reducing a three-year guarantee to one or two years if the eventual production plan could pay you more earlier.