While most physicians operate under formal employment contracts, many Advanced Practitioners (APs), such as Nurse Practitioners (NPs) and Physician Assistants (PAs), may find themselves in a different situation. In some healthcare settings, APs are classified as "non-physicians" and told that only physicians require contracts. If you’re an Advanced Practitioner considering a new position where contracts aren't standard, it’s important to evaluate whether or not a formal employment contract is right for you. Below, we’ll explore the pros and cons of employment contracts for Advanced Practitioners to help you make an informed decision.

The Pros:
Contracts Can Protect Your Interests. One of the key benefits of having a contract is that it formalizes the terms of your employment. As the saying goes, "If it’s not in writing, it didn’t happen." Verbal agreements about salary, benefits, working hours, and conditions of employment can be difficult to enforce. A contract ensures that these agreed-upon terms are clearly defined, making it easier to hold both parties accountable.
They Can Have Long Term Benefits. In addition to protecting your current terms of employment, a contract can help guarantee long-term benefits. For example, you can include provisions for annual reviews and outline how raises, bonuses, or revenue-based incentives will be determined. This is especially important if you are agreeing to a revenue-based income, as it ensures transparency in how your earnings are calculated.
They Clarify Possible Ambiguities. Contracts can help clarify the scope of your benefits and other key terms of employment. For instance, it’s essential to define what types of Continuing Medical Education (CME) funding, liability insurance, or professional development support your employer will provide. By laying out these terms in writing, you can avoid misunderstandings down the road.
Contracts Provide Stability. Having your employment terms clearly laid out in a contract can provide a sense of stability. Knowing exactly what your salary, PTO (paid time off), sick days, and benefits are gives you peace of mind. This stability can be especially valuable when navigating the pressures of a healthcare career.
The Cons:
Contracts Can Be Limiting. One common drawback of employment contracts is the inclusion of a non-compete clause. These clauses restrict your ability to work in similar positions, specialties, or geographic areas during and after your employment. This means that if you leave your job, you may be limited in your future employment options within a specific region, so it’s critical to review these clauses carefully.
There May Be Less Room For Negotiating. Once you sign a contract, renegotiating the terms can be challenging. Employment contracts often lock you into specific pay rates, benefits, and time-off policies, making it harder to negotiate changes, such as salary increases or additional PTO, after the contract is in place.
Pay a Lawyer or Pay the Price. Employment contracts are typically filled with complex legal language, which can be difficult to interpret without a law degree. To ensure you fully understand the contract’s terms, it’s recommended that you hire a contract lawyer before agreeing to any terms. While hiring a lawyer can be expensive upfront, it can save you from legal complications or costly mistakes down the road.
They Generally Protect the Employer, Not You. It’s important to remember that many employment contracts are designed primarily to protect the employer’s interests. Organizations may include provisions that safeguard their assets while leaving you with less leverage. Be mindful of any one-sided terms that could place you at a disadvantage during or after your employment.
For Advanced Practitioners, deciding whether to request or sign an employment contract is a significant step in securing your career. Contracts can provide job stability, clarify your rights, and offer long-term financial benefits. However, they can also limit your flexibility and may include provisions that primarily benefit the employer. Before signing any contract, it's crucial to carefully weigh the pros and cons and consult with a contract lawyer to ensure your interests are protected.
*Originally posted on 5/26/2020. Last updated on 9/11/2024.

With a career focused on healthcare Business Development and Service Line performance, Paul had recently been at the forefront redefining the traditional In-house Provider Recruiting role. In his position as Medical Staff Development Officer at University Hospitals, Lake Health Region in Cleveland, Ohio, Paul integrated collegial interaction, analytics, and provider experience expertise to drive a differentiated recruitment strategy.
Paul has brought that knowledge and experience to Client Sourcing at PracticeMatch. Joining PracticeMatch in 2021, Paul supports Client Sourcing’s pro-active recruiting model that generates a robust prospect pool, creates an effective and efficient recruiting experience, and identifies key metrics to ensure optimal performance for the client. Paul has a commitment to learning, development and passion for building a team of recruiting professionals to leverage their national footprint which benefits its client organizations and their candidates.