A practical, experience-based look at what matters in your first contract—and what’s worth a closer look before you sign.
What Should You Look for in an Ophthalmology Contract? (Quick Answer)
When reviewing your first ophthalmology contract, focus on:
- How compensation is structured (base salary and productivity bonus)
- PTO and CME (time off, structure, and reimbursement)
- The non-compete / restrictive covenant (radius, duration, enforceability)
- The notice period and termination terms
- Any partnership track details (if offered)
- Call expectations and schedule
- Malpractice coverage, including tail insurance
Most contracts are reasonable. The key is understanding how these terms work—and how they may affect your flexibility and long-term options.
A Brief Note on Contracts- This is not legal advice
We’re not attorneys, and we don’t provide practices or candidates with legal advice.
What we’re sharing comes from what we see day in and day out across a wide range of ophthalmology practices and physician offers.
Every agreement is a little different, and we always encourage having a healthcare attorney review your contract. Our goal here is simply to give you a clear sense of what’s typical—and what may be worth a closer look.
A Quick Perspective Before We Begin
Contracts matter.
But in our experience, most agreements aren’t designed to be adversarial—they’re designed to create structure and clarity for both sides.
That said, there are almost always a few areas that deserve a closer look.
Over the years, we’ve walked alongside many ophthalmologists as they’ve talked with us about their first contracts, and we’ve found that it’s rarely the headline terms that create confusion—it’s the details underneath them.
The goal here isn’t to make you cautious about every line. It’s simply to help you understand what’s typical, what tends to matter, and where it may be worth slowing down and asking a few thoughtful questions.
Compensation — It’s Not Just the Number
If you’ve read our guide on ophthalmologist salary and compensation for new graduates, you know that compensation is usually made up of:
- A base salary
- A productivity bonus
In the contract, pay attention to:
- How the bonus is calculated
- When it begins (thresholds)
- How often it’s paid (monthly, quarterly, annually)
Taking a few minutes to understand how the model actually works can go a long way.
PTO, CME, and Time Away from Practice
Most ophthalmology contracts include provisions for time off and continuing education, and while these tend to be fairly standard, it’s still worth understanding how they’re structured.
In many cases, we see:
- 3–4 weeks of PTO
- 1 week of CME
- A CME allowance in the range of $2,500 to $4,500
Some practices keep PTO and CME separate, while others combine them into a single bank of time.
Neither approach is inherently better—but it’s helpful to understand:
- How much time you’ll realistically have away from clinic
- Whether CME time is protected or expected to come out of PTO
- How the reimbursement process for CME works
This is one of those areas that may feel fairly straightforward when you review the contract, but it can shape your overall rhythm of practice more than expected. Over time, having the ability to step away, recharge, and continue learning tends to matter more than most physicians anticipate early on.
Non-Compete Clauses (Understand This Clearly)
This is one of the most important—and most frequently misunderstood—parts of a contract. Non-competes are not enforceable in every state in the U.S.
A non-compete typically defines:
- A geographic radius (for example, 10–25 miles)
- A time period (often 1–2 years)
The goal is to prevent direct competition if you leave.
In most cases, these are reasonable and fairly standard—but how they apply can feel very different depending on the market you’re in.
What matters is understanding:
- How large the radius is in your specific market
- Whether it limits your ability to stay in the area if your plans change
- Does it apply to the location you’re working at, or to all of the locations a practice owns
If something feels broad or unclear, it’s worth asking questions.
Notice Period and Termination
Most contracts include a notice requirement if either side decides to end the relationship.
Typical ranges:
- 90 days to 6 months
This is standard.
What to think through:
- How flexible is that timeline if your situation changes?
- What happens if you need to transition more quickly?
Clarity here helps avoid surprises later on.
Partnership Language (If Offered)
Some opportunities mention a path to partnership.
This can be a meaningful part of your long-term decision—but it’s important to understand how defined that path is.
Consider:
- Is there a clear timeline?
- Do most associates become partners?
- Is the buy-in structure explained, even at a high level?
Oftentimes, partnership language is not included in your initial employment agreement. We’ve found that when partnership is clearly defined—with a track record of associates moving into that role—it tends to feel very different than situations where the path is less structured.
Call Responsibilities
Call expectations can vary quite a bit.
It’s worth understanding:
- How often you’ll be on call
- Whether call is shared evenly
- Whether it’s tied to hospital coverage or ASC responsibilities
This is one of those areas that’s easy to overlook early on—but can shape your day-to-day experience more than expected.
Malpractice Coverage
Most contracts include malpractice insurance, but the structure matters.
Two common types:
- Occurrence coverage (less common, but simpler)
- Claims-made coverage (more common)
This isn’t something that needs to feel complicated—but it’s one of those areas where a little clarity upfront can prevent confusion later.
Who Pays for Tail Coverage?
This is where contracts can vary—and where it’s worth having clarity.
In many cases, we see a few common approaches:
- The practice covers tail if they terminate the physician without cause
- The physician covers tail if they choose to leave
- The cost is shared or negotiated between both parties
There isn’t a single “right” approach here, but the difference can be meaningful.
Tail coverage can be a significant expense depending on your specialty and time in practice, so it’s helpful to understand:
- When it applies
- How it’s structured
- And what your responsibility would be in different scenarios
Common Contract Mistakes We See
Over time, a few patterns tend to repeat themselves—especially for physicians reviewing their first contract:
- Not fully understanding the non-compete
- Skimming over termination and notice terms
- Assuming partnership is guaranteed without clarity
- Not asking how compensation details actually work
- Focusing on headline numbers rather than structure
These are easy to miss—but can have a meaningful impact over time.
Common Contract Terms (Simply Explained)
When reviewing your first contract, you’ll likely come across a number of terms that aren’t always clearly defined. Here are a few that are worth understanding:
Base Salary
Your guaranteed compensation, typically paid regardless of productivity—especially in the early part of your contract.
Productivity Bonus (Collections-Based Compensation)
Additional income based on what you produce, usually calculated as a percentage of net collections after reaching a certain threshold.
Net Collections
The actual revenue collected for services you provide—not what is billed, but what is ultimately paid.
Threshold
The level of production you must reach before a productivity bonus begins (often expressed as a multiple of your base salary).
Non-Compete (Restrictive Covenant)
A clause that limits where and when you can practice if you leave the position, typically defined by a geographic radius and time period.
Tail Coverage
If your malpractice policy is “claims-made,” tail coverage protects you from claims filed after you leave the practice for care you provided while employed.
Claims-Made vs. Occurrence Coverage
Claims-made: Covers you only while the policy is active (tail may be needed after leaving)
Occurrence: Covers you for any incident that happened during the policy period, regardless of when the claim is filed
Notice Period
The amount of time you’re required to give before leaving a position, often 90 days to 6 months.
These terms are fairly standard, but how they’re structured can vary from one practice to another. Taking a few minutes to understand them can make the rest of the contract much easier to navigate.
Frequently Asked Questions About Ophthalmology Contracts
What is a typical non-compete for an ophthalmologist?
Most non-competes include a geographic radius (often 10–25 miles) and a duration of 1–2 years, though this can vary depending on the market and practice. So for example, in a densely populated metropolitan area like New York City, your restrictive covenant radius may be very small.
How long is a typical physician contract notice period?
Most ophthalmology contracts require between 90 days and 6 months’ notice.
Should I hire an employment attorney to review my contract?
Yes. Absolutely.
What is tail coverage in malpractice insurance?
Tail coverage protects you for claims filed after you leave a position when you were previously covered under a claims-made policy.
How much PTO and CME do ophthalmologists typically receive?
Most new ophthalmologists receive 3–4 weeks of PTO, 1 week of CME, and a CME allowance between $2,500 and $4,500, though structures can vary by practice.
Should I have a lawyer review my ophthalmology contract?
Yes. While many contracts are standard, having a healthcare attorney review your agreement can help ensure you fully understand the details.
Final Thought
Most contracts are reasonable.
But understanding them clearly—and taking the time to ask a few thoughtful questions—can make a meaningful difference.
We’ve seen physicians feel very confident moving forward when they have that clarity. And early in your career, that confidence matters.
Because the goal isn’t just to sign a contract—it’s to step into an opportunity that you feel good about, both now and as your career continues to take shape.
