Contract Negotiations

Our thanks to Ann Sheehan, MA, CPNP, for providing the answer to this question.

Question: I am beginning to look for a new place of employment. Can you give me some suggestions for things that I need to look for when negotiating a contract?

Answer: "I want to review a few basic principles of finding a new job and contract negotiating. When you are looking for a new job, be sure the prospective employer knows what they are looking for. Don't compromise your education, abilities and independence by taking a position that was designed for a PA. Ask the prospective employer for a job description. Ask many questions to be sure the employer understands the difference between NPs and PAs. Does the employer really know what job needs to be filled? You don't want a job that will cause you to be frustrated.

Once you have decided on a new NP position, be prepared to negotiate a contract. Don't assume your new employer will be fair or will have thought of all of the ways you will be beneficial to the office. You need to go in prepared with strategies and numbers to negotiate an equitable contract. Don't take the first offer. Take time to think about what you want and what has been offered. Can you compromise in some areas and not lose the big picture?

If you are in a position to renegotiate a contract this year, be sure you have hard evidence of your productivity. Have your billing person pull up your productivity numbers from last year. In fact, you may want to pull up two to five years worth of productivity numbers to document your increasing worth over the last several years. You can then use these numbers to negotiate a productivity-driven salary.

There are several areas to consider when you are negotiating a contract, including: base salary, bonus payments, on-call requirements and compensation, malpractice insurance, health insurance, dental insurance, disability insurance, number of days/hours you are expected to work per week, vacation time, sick time, CE time, CE reimbursement, licensing fees, professional journal subscriptions, professional organization dues, hospital rounds and reimbursement, restrictions to competition, termination clause, non-clinical or administrative work, NP name and/or picture to appear in all advertising and on the name plate outside the office, and the possibility of partnership. These are all important items that should be covered in your contract. Probably, the most important item along with the base salary is understanding how your bonus will be figured. You will want to ask very specific questions about this. Does the formula for your bonus benefit you or the employer? You need to expect to pay overhead-how is this calculated? You should also expect to pay a small percentage of your profits to your collaborating physician. This percentage should not be greater than 10% to 15% unless you use an unusually large amount of your collaborating physician's time.

Don't feel like you have to make a decision about all of these items during one meeting. Take good notes and then reschedule a meeting after you have heard what the employer has to offer. Look at your productivity numbers and see if what is proposed seems reasonable. Don't be afraid to ask someone else for advice. You may even want to contact a lawyer who is familiar with NP practice. It is reasonable to counter the employer's offer, after you have had time to prioritize your thoughts. Once you sign a contract it is difficult to change until it expires.

Above all, be sure you get what you are worth. An employer may try to tell you that you are not worth what you are asking. This is a great opportunity to educate your employer about what an NP is capable of doing. Don't compromise your education, abilities or independence by taking less than you are worth. Documented productivity cannot be disputed. Don't be afraid to ask for something; if you don't ask you certainly will not get it. You are the only person who knows what you are worth to the employer, be sure you get what you are worth.

In addition, the NAPNAP Career Resource Guide is an excellent tool. It can be obtained by calling the national office or by ordering on-line at www.napnap.org.