Most providers receive a first offer, feel relieved to have a job, and sign without reading the fine print. The following five clauses appear in the majority of psychiatric employment contracts and carry significant financial and professional risk. Know them before you sign anything.
A non-compete clause with no geographic limit or an unreasonably large radius
Non-compete clauses restrict where you can practice after leaving the employer — typically for 1–2 years within a specified radius. A clause with no radius cap, or a radius of 25+ miles in a densely populated area, can effectively prevent you from practicing in your city after you leave.
Claims-made malpractice coverage with no tail coverage provision
Claims-made policies only cover you while employed. If a patient files a claim after you leave — even for care you provided while employed — you're not covered unless you have "tail" (extended reporting period) coverage. Tail coverage can cost $10,000–$30,000 out of pocket.
Productivity or RVU compensation with no guaranteed base floor
Pure productivity compensation means your income is entirely dependent on volume. In psychiatric practice, where new providers see fewer patients while building skills and a panel, this can result in significantly lower income than expected in the first 6–12 months.
Termination without cause with a short notice period
Most contracts allow the employer to terminate you without cause with 30–90 days notice. A 30-day clause leaves you very little time to find a new position. If you are the one terminating, the same short notice period may create liability if your patients are left without care.
An IP clause that claims ownership of work you do outside employment
Broad intellectual property clauses sometimes claim employer ownership over any work you create "related to your field" — including courses, books, speaking engagements, or consulting work you do on your own time.