Buy Now

Physician Contract Glossary · Restrictive Covenants

Buyout Amount

A buyout amount is the sum you can pay to be released from a non-compete restriction.

Some non-competes include a buyout: pay a defined amount and the restriction lifts. A handful of states, including Texas, require physician non-competes to offer a buyout at a reasonable price. The amount is sometimes a flat sum and sometimes a formula tied to your salary. A fair buyout turns an absolute barrier into a priced option, which is far better than a non-compete you cannot escape at all.

WHAT TO WATCH FOR

If a buyout exists, scrutinize how the amount is calculated, because a buyout priced at a punishing multiple of salary is a non-compete in disguise. If none exists, negotiate one, especially in states that do not mandate it.

Related terms

Stop being recruited. Start choosing.

You are about to sign something the senior people in your program signed without reading.

They had no guide either. You do. Start with the option that costs you nothing: see every practice that is actually out there before anyone hands you a contract.

Browse the Practice Directory    The Real Contract Course