Letter of Intent or Letter of Importance?
It’s undoubtedly exciting to receive a letter of intent (LOI). You can breathe a sigh of relief as you are, in fact, employable. Go you. A letter of intent serves as a roadmap for what your contract will include. While LOIs are non-binding, they do offer valuable information on your employment obligations and what you can expect from your prospective employer.
An LOI may contain information about the term and termination of the agreement, compensation, bonuses, call schedule, professional liability insurance, health insurance, paid time off, continuing medical education allowances, and retirement benefits. These are important items that will impact your experience as a physician whether more acutely (a signing bonus, for example) or chronically (call schedule, compensation). See what we did there?
When navigating the hiring process, it’s imperative that physicians do not sign LOIs they disagree with or that contradict promises made by a prospective employer. Your signature on an LOI indicates that you assent to or agree with what it says. It’s a bad look to agree to a term in an LOI and later try to negotiate that term in a contract. You lose some of your negotiating power, and your employer may refuse.
If an LOI includes a term that is unfavorable to you or that contradicts a promise made to you, it’s important to talk to your prospective employer to have the LOI amended. For example, if you were promised a base compensation of $300,000 but your LOI lists your compensation as $275,000, don’t sign the LOI until the compensation has been changed.
It may be nerve-wracking to negotiate changes with an employer but, remember, negotiation is just a conversation. In any good relationship, both partners should be able to advocate for their needs. When you advocate for yourself now, it gets easier to do so in the future.
It’s best to consult with a qualified attorney before you sign an LOI. An attorney can help you evaluate the LOI and navigate conversations with your employer.
Need help reviewing your LOI? The Contracts Counsel offers one comprehensive review package to ensure you have everything you need to gain clarity, confidence, and control of your career.
