Coffee and Contracts: Benefits

Physician employment contracts often lack specific details regarding benefits, frequently omitting precise terms for life insurance, disability coverage, and retirement plans. While CME allowances typically range from $1,000 to $5,000 and vacation time spans three to five weeks, many core benefits are governed by separate plan documents rather than the contract itself. This distinction is critical because employers can unilaterally alter policies, such as reducing CME funding during the pandemic or changing retirement matches, without breaching the employment agreement. For independent contractors, the absence of these benefits can create a financial deficit exceeding $30,000 annually. Furthermore, employer-provided disability insurance often lacks portability and carries coverage caps—frequently limited to $7,500 or $10,000 per month—which may be insufficient for high-earning physicians. Understanding these nuances is vital since items like 401k vesting schedules and match percentages are generally non-negotiable fixed institutional policies.