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Physician Contract Glossary · Compensation

Mandatory Expenditures

Mandatory expenditures are costs the contract requires you to pay out of your own compensation.

Some contracts, especially in production and partnership settings, require you to cover defined expenses yourself: a share of overhead, professional dues, CME beyond an allowance, or specific equipment. These are charged against your compensation before you see it. They are easy to overlook because they sit apart from the salary headline, and they can take a real bite out of take-home pay.

WHAT TO WATCH FOR

List every expense the contract makes mandatory and subtract them from the offer. A strong headline number with heavy mandatory expenditures can net out below a simpler salary elsewhere.

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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.

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