There’s no question that psychiatrists are in high demand. In fact, the Bureau of
Labor Statistics (BLS) estimates that there are 25,250 psychiatrists employed in
the U.S., with a mean hourly wage of $103.89 and a mean annual salary of
$216,090. About four in ten work at hospitals or outpatient care centers. Plus, the
profession’s outlook is bright. The BLS anticipates that another 5,350
psychiatrists will be needed by 2026.
The short supply of psychiatrists translates to power at the negotiating table. Yet
it’s not always easy to discern a stellar contract from one that is subpar. Here are
six important considerations when it comes to psychiatrist contract negotiations:
Compensation Model
The hospital or practice you’re considering will use one of several compensation
models. The model itself is typically non-negotiable, so it’s crucial to understand
the basis for your compensation. For example, your pay may be tied to the
amount you bill, it could be an amount equal to the compensation of others in the
practice, or it might be derived from a unique formula. Prior to entering
psychiatrist contract negotiations, it’s crucial to understand and agree to the
compensation model.
Know Your Priorities
In a psychiatrist contract negotiation, neither side will achieve every one of its
objectives. That’s why, before entering negotiations, you must prioritize what’s
important to you and brainstorm creative ways that can bring you closer to your
goal. For example, if compensation is at the top of your list but your potential
employer has a hard limit on wages, you might be able to negotiate a signing
bonus, repayment of student loans [INTERNAL LINK TO PRIOR ARTICLE],
better benefits, moving expenses, and so forth.
Look at Restrictions
Some psychiatrist contracts include restrictions on outside activities like teaching
or sitting on boards, while others consider compensation from that work as group
revenue rather than individual compensation. Other restrictions might include
non-compete and non-solicitation clauses. It’s important to think about all aspects
of your work life – now and in the future – prior to agreeing to specific restrictions.
Serve Up a Negotiating Sandwich
It’s usually easier for a recipient to hear negative feedback when is sandwiched
between two pieces of positive feedback. Similarly, negotiations will go more
smoothly if you begin by asking for something that’s easy for your potential
employer to give, then make your most difficult ask, followed by another easy
ask.
Consider Outside Help
Because your employment contract will have a profound impact on your work life,
your family life, and your financial future, you may want to invite a third-party
negotiator to broker your deal. If you negotiate on your own behalf, it is still a
good idea to have a contract attorney experienced in physician contracts to
review the agreement before you sign on the dotted line.
Best Foot Forward
Throughout your psychiatrist contract negotiations, keep in mind that these are
the people you will be partnering with to provide care to your patients. Being a
strong negotiator and looking out for your best interests are important, but ensure
that the negotiations don’t tip over into combativeness. While contract
negotiations are, indeed, a zero sum game, the name of the game is
compromise. Recognizing that each party will get some of what they want can go
a long way to ensure civil discussion in the present and mutual respect moving
forward.
If you’re ready to move into a new position, PsychWorx can help. Our clinicians-
turned-recruiters can find your perfect fit. Call 202-380-9606 to get started.