Physician Severance Pay: 2026 Guide
Physicians typically receive 3-12 weeks per year of service. Calculate your estimated package below.
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Typical Physician Severance Range
Physician severance is governed by employment contracts rather than company-wide formulas. Employed physicians (hospitalists, specialists in health systems) typically have negotiated contracts with 3-12 month severance provisions. Tail malpractice coverage is the single most important non-cash benefit — it can cost $20,000-$50,000+ and must be addressed in any separation agreement.
Based on $250,000 average salary, 5 years of service
How Physician Compares to Healthcare Average
Top Companies Hiring Physicians
Severance packages at major employers for physician roles:
| Company | Severance Formula | Rating |
|---|---|---|
| Kaiser Permanente | Union-negotiated for many roles; typically 2-4 weeks per year | Standard |
| Mayo Clinic | Based on tenure and position; typically 2-8 weeks | Standard |
| HCA Healthcare | Varies; typically minimal for non-executive staff | Below Avg |
| UnitedHealth Group | 2 weeks per year of service + transition benefits | Standard |
| CVS Health | 2 weeks per year of service (standard corporate) | Standard |
Physician Severance After Tax by State
Top states for physician roles. Same package, different take-home.
| State | State Tax | Total Tax | After-Tax (on $144,231) |
|---|---|---|---|
| California | 12.3% | 34.3% | $94,760 |
| Texas | 0.0% | 22.0% | $112,500 |
| Florida | 0.0% | 22.0% | $112,500 |
| New York | 10.9% | 32.9% | $96,779 |
| Pennsylvania | 3.1% | 25.1% | $108,072 |
| Illinois | 5.0% | 27.0% | $105,361 |
Negotiating Physician Severance
Role-specific strategies for physician severance negotiation:
- ✓Tail malpractice coverage is critical — this alone can be worth $20,000-$50,000+
- ✓Negotiate for continued medical staff privileges during transition
- ✓Push for non-compete clause removal or geographic/time limitation reduction
- ✓Ask for patient notification assistance and medical records access
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Physician Severance FAQ
How much severance does a physician typically get?▼
Physicians typically receive 3-12 weeks of pay per year of service. With an average salary of $250,000, a physician with 5 years of service would typically receive $144,231 (before tax).
Can a physician negotiate their severance?▼
Absolutely. Physician severance packages are almost always negotiable. An employment lawyer experienced in healthcare can typically negotiate 2-5x the initial offer. Focus on role-specific benefits like tail malpractice coverage is critical — this alone can be worth $20,000-$50,000+.
What should a physician prioritize in severance?▼
Beyond cash, physicians should prioritize: extended health coverage (COBRA costs $600-2,000/month), equity/stock acceleration, outplacement services, and a positive written reference. For healthcare roles specifically, also focus on professional certification maintenance and industry-specific benefits.
Related Roles
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The exact steps employment lawyers use to negotiate higher severance. Used by 10,000+ employees.