How to Evaluate a Letter of Offer or Contract

Abstract

This chapter reviews the process of evaluating the official contract or letter of offer that concludes the recruitment process. It frames how to navigate the search process with the final negotiation phase in mind, which includes accurate self-assessment of personal and career goals; meeting with mentors; preparing questions for the interview day; accumulating institutional information before, during, and after the interviews; and creating decision grids. The chapter reviews what to look for in the contract or letter of offer and what are the most common negotiable components. Components of the legally binding contract or letter of offer that are commonly not reviewed in enough detail include job-specific responsibilities articulated in amendments and employee handbooks. Contract components covered include terms, terminations, and restrictive covenants; academic rank; duties and responsibilities; and compensation. The components and importance of employee handbooks are discussed. The rationale for retaining legal counsel is reviewed and depends on the complexity of the job, rights related to intellectual property, and an individual’s personal situation. A sample is included.

Appendix: Sample Letter of Offer

[Date]

Dear Dr.:-----------------

We are pleased to extend to you an offer of appointment to the full-time faculty in the Department of-----------------------, anticipated to commence on------------------.

Your appointment will be proposed at the rank of Assistant Professor. Policies governing faculty appointments are contained in the enclosed Information for Faculty handbook.

Your initial contributions to college and departmental missions in the areas of patient care, teaching, research, and administration/service will be as follows:-------------------------.

Patient care: Your primary clinical assignment will be----------------. In addition to this inpatient work, you will devote approximately six (6) hours per week to the Department’s------------Program----------------directed by------------------. You will be expected to participate in the on call rotation, with duties consistent with your team members. We anticipate this will be--------------------.

Teaching: In your role, you will be expected to participate in the multidisciplinary educational programs of the Department, to include---------.

Research: In your role, you will be expected to collaborate with faculty involved in clinical trials and other clinical research protocols on average for four (4) hours per week.

Administration/Service: You will be expected to participate, to the extent that you may be reasonably called upon, in administrative and/or service functions of the Department and the Medical School.

Your salary for the -------- academic year will be at the annual rate of $ --------. Thereafter, your compensation will be reviewed at least annually, and sources of funding and FTE allocations may change that may affect your salary.

The Department will cover the registration fee for the--------board certification examination should you choose to take it. We encourage you to do so. This reimbursement may be considered taxable income to you.

Faculty Practice Plan; Clinical Services Agreement; Compliance with Medicare and Medicaid Laws and Regulations; Mandatory Education: You will become a member of the------------and be subject to its rules and the Faculty Practice Plan. You will also be required to enter into a Clinical Services Agreement and Restrictive Covenant with------------and to comply with and attend educational sessions on Medicare and Medicaid laws and regulations. All patient care performed by you will be billed through the Faculty Practice Plan, and the resulting income will be the property of-------------------. A Faculty Practice Plan billing number will be issued to you prior to your engaging in any patient care activities.

The-----------------has adopted a Code of Conduct, a copy of which is enclosed. As a condition of employment, you must acknowledge that you have received, read, and understood the Code of Conduct. The acknowledgement form is also enclosed and must be signed and returned.

Additional Conditions of Appointment. This offer of appointment is also subject to the following:

• 1. Your agreement to comply with the bylaws, policies, and procedures of----------------, including the Information for Faculty handbook, and the Code of Conduct;

• 2. Your obtaining and maintaining an unlimited----------------medical license and DEA registration;

• 3. Your acceptance by the-----------------for ­professional liability (malpractice) insurance coverage;

• 4. Your obtaining and maintaining medical staff membership and clinical privileges at the hospital(s) where you will be assigned;

• 5. Your eligibility to participate in the Medicare and Medicaid programs, and your ability to be credentialed for treatment of managed care patients; and------------------.

Your anticipated start date is dependent on the satisfaction of all conditions specified in this letter. Because the process is time sensitive, it is important that you complete and return all required forms promptly. If you accept the terms and ­conditions of the appointment ­contained in this letter of offer, please sign and return one copy of the letter within the next two weeks, accompanied by the Code of Conduct acknowledgement form, Clinical Services Agreement, Professional Liability Self-Insurance Questionnaire, and Credentialing Application completed according to the enclosed instructions.

Upon receipt of your signed acceptance of this offer and other required materials, and the satisfaction of all other conditions of appointment, we will forward our recommendations to our Dean’s office for consideration.

Very truly yours,

Chair,

Department of----------------

                    Dean and Executive Vice President

Enclosures

ACCEPTANCE OF OFFER OF APPOINTMENT

I accept the offer of appointment described in this letter subject to all its terms and conditions.

------------------------

Signature

Print name: ------------------------

Date: ------------------------