How to Handle Concessions in Physician Contract Negotiations
Key Takeaways
✅ Label your concessions clearly: Say “I am prepared to offer this...” to highlight the value.
✅ Start small: Don't jump to big compromises too early.
✅ Always tie your concession to a condition: If you give something, ask for something in return.
Why Do Concessions Matter in Physician Contracts?
Ever wondered why some doctors get better deals than others, even when they’re less experienced? It’s often because they know how to handle concessions.
Negotiations aren’t just about asking for more. They’re about knowing what to give up, and when. If you’re not careful, you can give away too much without gaining anything in return.
What Are Concessions in a Contract?
Concessions are the trade-offs you make during a negotiation. For doctors, this can include things like:
- Agreeing to work one extra weekend per month
- Accepting a lower signing bonus in exchange for higher base pay
- Taking on more call shifts for better vacation terms
Handled poorly, concessions can make you feel like you’re losing ground. Done right, they can turn a shaky offer into a win.
Step 1: Label Your Concessions
Why bother labeling concessions? Because without it, the other side won’t see them as meaningful.
📌 Instead of: "Sure, I can take extra call."
✅ Say: "I am prepared to offer extra call coverage, but in exchange, I’d like a reduction in weekend shifts."
When you label what you’re giving, you highlight its value.
Step 2: Start Small
Too often, we get cornered and throw out a huge concession too early. That's a mistake.
📌 Imagine this: You’re negotiating PTO. Instead of instantly agreeing to fewer days off, try this:
✅ “We can adjust my PTO slightly, but I’d like to explore more flexibility in my schedule.”
Starting small leaves you room to negotiate further if needed.
Step 3: Always Ask for Something in Return
This part’s crucial. If you give something, ask for something back, every single time.
📌 Example: "I’d be willing to start a week earlier than planned, but I’d like to secure protected time for CME."
If you don’t tie concessions to conditions, you’re just giving away leverage.
How Does This Play Out in Real Life?
Imagine this:
You're negotiating your contract with a hospital. You’ve asked for a higher salary, less call, and extra PTO.
📌 Instead of saying:
❌ “I’ll give up the PTO if you raise my salary.”
Try this:
✅ “I’m prepared to be flexible with PTO if we can adjust salary to match MGMA benchmarks and confirm my clinic schedule won’t increase.”
This way, you're giving a little, but you’re gaining even more.
Prepare to Win
Physician contracts are full of potential pitfalls. Knowing how to handle concessions can make all the difference.
✅ Label your concessions.
✅ Start small to leave room for later moves.
✅ Tie every concession to a request.
If you want to walk into your next contract discussion feeling confident, prepared, and ready to ask smart questions, consider taking The Real Contract Course.
It’s designed to help physicians like us:
- Understand tricky contract language.
- Spot red flags before they become problems.
- Focus on the key points that matter most.
The better prepared you are before meeting with your lawyer, the stronger your position will be when you negotiate.
