Deciding on a candidate for a professional position with your medical practice is only one piece of the puzzle. Next comes the negotiation phase.

Physician recruits today are more knowledgeable about business contracts than ever before. Most employed physicians have already selected a healthcare attorney before they are presented with an offer.

In this stage of the negotiation, the practice should know its limits. What is the practice’s maximum limit with respect to the entire compensation package?

A typical employment contract should include a base salary with an incentive component. The incentives can be tied to financial and nonfinancial benchmarks.

Financial benchmarks might include charges, collections, relative value units and profit. Nonfinancial might focus on leadership, quality and patient satisfaction.

The incentive component of the compensation plan should be at least 30 percent of the total compensation for it to produce the desired effect.

Practices often prepare a “term sheet,” which itemizes the basic terms of a proposed agreement. The term sheet is something tangible that candidates can use in their decision-making process.

It is important to remind candidates that they must compare apples to apples. For instance, your practice may offer to pay the physician’s occurrence malpractice premium. If the candidate has another offer in which the practice provides claims-made coverage and does not pay for tail coverage, the candidate is not comparing apples to apples.

Be upfront with physicians about deal breakers. These are the details of the contract that the practice is unwilling to negotiate, such as a requirement for candidates to pass their boards within two years.

Knowing when and when not to negotiate terms can lead to a candidate who fits your practice.