Physician contracts often hold the key to career satisfaction or frustration. At Lucens, we know that understanding the nuances of your agreement is essential to aligning with your goals and avoiding surprises down the road.

This week, we asked Omar Shakir, MD, to share his advice on how to approach contracts with clarity and confidence, especially when working with larger organizations.

Question:

What’s something you’ve seen in contracts that can catch doctors off guard?
– S.P., Houston

Omar:

The first thing I’d say is to look carefully at who’s actually offering the contract. If the agreement doesn’t come directly from the practice you’re joining but instead from a holding company or private equity group, that’s worth paying attention to. It could mean that the practice is part of a larger corporate structure.

This isn’t necessarily a bad thing—there can be benefits to being part of a bigger organization, like access to resources or broader career opportunities. But it’s important to understand how these structures operate. They often have their own priorities, such as maximizing profit or meeting the expectations of investors. That can sometimes create a disconnect between the practice’s day-to-day operations and your professional goals.

For example, the practice might retain its original branding and seem like a small, community-focused operation, but if it’s owned by a larger entity, your compensation and workload might be determined at a corporate level. If you’re not aware of this setup going in, it could lead to surprises later on.

Another key point is transparency. Your contract should clearly explain how your compensation is calculated—whether it’s based on patient volume, RVUs, or another metric. Without this clarity, it’s hard to know what’s expected of you or whether the role aligns with your financial goals.

Don’t hesitate to ask questions during the interview or when reviewing the contract. For example, you might ask, “How is compensation structured?” or “What’s the connection between the practice and the larger entity?” If the answers aren’t clear or the employer seems hesitant to provide details, take a step back and think critically about whether this is the right fit.

The main thing is to approach contracts with your eyes wide open. Understanding the dynamics at play allows you to make an informed decision and find an arrangement that supports your long-term growth.

The Bottom Line

Physician contracts can vary widely, especially when a practice is part of a larger organization. Dr. Omar emphasizes the importance of clarity—both in who’s offering the agreement and in how compensation is structured. Corporate entities can offer valuable opportunities, but asking the right questions upfront ensures that the role aligns with your goals and expectations.

Do you have a question for the community?

Have you ever felt uncertain about the terms of a job contract? Or have you learned something the hard way? Share your story or ask your own question—we’d love to feature your perspective in an upcoming article!