One of your physicians just gave notice. Ugh! What will you do next?
Your first instinct might be: What does the physician’s employment contract say?
Your second thought should be: What does this physician’s notice and our reaction to it say about our culture?
I’ve seen practices—both hospital- and physician-owned—panic and fall back on policies that feel more like punishment than professionalism. They accelerate termination. Deny earned bonuses. Restrict patient access. Withhold support. Threaten litigation. Legally allowed? Perhaps. A good idea? Rarely.
An ophthalmologist I know, who was working in private practice, let his leadership team know six months ahead of time that he didn’t want to buy into the practice’s partnership. He had several reasons, including the asking price and the practice’s location, which was several hours from his home. Regardless of his reasons, leadership took it personally, cut his schedule, and canceled his bonus.
I’ll bet you can guess what happens next. When physicians see that giving notice comes with hidden penalties, they stop being transparent. The next physician to consider leaving keeps it quiet until the last minute. The practice’s ability to plan disappears. Morale takes a hit. And patient care can, too.
The practice might have saved some money, but at what cost?
A physician resignation isn’t just a contractual issue. It’s a moment of truth. How the practice responds tells every physician—and every staff member—what kind of place they work in.
Here are three best practices I recommend, when it comes to dealing with physician resignations:
- Make sure your contracts and policies support a respectful, predictable off-ramp. Don’t let your approach drive more physicians away or keep them from joining in the first place.
- Treat notice as a transition, not a betrayal. When it comes to physician recruitment and retention, your practice’s culture is one of your practice’s most valuable assets.
- Ask the physician why they’re leaving and really listen to what they tell you. You might hear about a one-off move, or you might discover a deeper issue, like unrealistic expectations, poor support, or a misaligned culture. Either way, you’re likely to get some valuable insight.
At the end of the day, some physician departures are unavoidable. But the negative consequences of punitive policies are not.
If you’d like an outside perspective on what your contracts and policies actually say and what they signal, click here to set up a Practice Strategy Session with me.
