A physician finishes residency in June, gets an offer in July, and is asked to sign by Friday. The agreement is twenty pages long, the recruiter is friendly, and everyone calls it “standard.”
For many Maryland medical professionals, that first employment agreement is the most consequential contract they will sign. It sets the terms for pay, mobility, and exit for years, and it is far easier to negotiate before signing than after.
Maryland has changed one important piece of this picture. Under House Bill 1388, which took effect July 1, 2025, non-competes are void for licensed health care professionals who provide direct patient care and earn $350,000 or less in total annual compensation. That covers many physicians and dentists starting out. For higher earners, a non-compete is limited to one year and ten miles. However, a contract without a non-compete is not a contract without restrictions. Non-solicitation and confidentiality provisions are still allowed, and they can limit your options in ways that are easy to miss.
Whatever your specialty, these are the areas worth a close read:
Compensation: How base pay, productivity formulas, and bonuses are defined, and whether a bonus is still owed if you leave before it is paid.
Termination: Notice periods, what counts as “cause,” and whether you and the employer have the same right to leave without it.
Repayment obligations: Signing bonuses, relocation, loan repayment, and training costs that must be paid back if you leave early.
Malpractice coverage: Whether the policy is claims-made or occurrence-based, and who pays for tail coverage when you go.
Credentialing and start date: When you get paid if payor enrollment or hospital privileges are delayed.
Most of these terms can be negotiated, but only before you sign. Ask questions, ask for time, and have someone read it who does this for a living.
To help, we created the First Contract Checklist, a free, plain-English guide for new Maryland physicians and dentists, with the questions worth asking before you put your name on anything. Get your free copy here.
At MDRXLaw, we counsel physicians, dentists, and healthcare practices on employment agreements and the regulatory issues that come with them. Please feel free to contact our attorneys at info@mdrxlaw.com or at 212.668.0200.
