Retention Provisions - Physician Contract Glossary

Retention Provisions

Definition

Contract clauses designed to keep you in a particular position or location for a specified period—often tied to bonuses or guaranteed income.

Examples in Context

“If Physician remains employed for two full years, the entire sign-on bonus is forgiven.”

“Physician agrees to remain employed with ABC Health for a minimum of 18 months to retain the relocation reimbursement.”

“Retention bonuses will be paid in two installments: 50% after the first year and the remaining 50% at the end of year two.”

Implications for Physicians

• Encourages longer tenure.
• May be linked to financial penalties if you leave early.
• Could delay your ability to pursue other career opportunities.

Negotiation Tips

• Ask for a prorated scale if you must exit early.
• Ensure the time period is realistic for your career goals.
• Request that retention bonuses are paid incrementally to reduce risk.

Red Flags and Pitfalls

• Retention bonuses not fully disclosed in the contract.
• Employers enforcing retention with liquidated damages clauses or lawsuits.
• Retention clauses tied to unreasonable requirements, such as excessive call coverage or practice restrictions.

Related Terms

• Hospital Assistance Agreement
• Income Guarantee Agreement
• Sign-on Bonus
• Termination without Cause

FAQs

• “Are retention clauses common in physician contracts?”
  • Yes, especially in hospital contracts or underserved area agreements.
• “Can retention bonuses be forfeited?”
  • Yes, typically if you leave before completing the required retention period.
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Legal Disclaimer

The information provided in this glossary is for educational and informational purposes only and should not be construed as legal advice. While we strive to provide accurate and up-to-date information, this content is intended to help physicians better understand common contract terms and does not replace professional legal guidance.

For personalized advice regarding your employment contract or other legal concerns, we strongly recommend consulting with a qualified attorney who specializes in physician employment contracts.

You can find experienced legal professionals through our Physician Contract Lawyer Directory.