08-16, October 7, 2008.. [5] In many circumstances, MGMA data (when purchased) can be calculated on deciles, as well. A paradoxical trend is developing within the medical profession. Some employers are limited by budget constraints and can only give raises at certain … But in some cases, a payment rate may be well beyond the norm. Opinions expressed herein are solely those of Physicians Thrive Investment Advisors, LLC and our editorial staff. As with any situation, knowing what to expect beforehand can help to ease some of the anxiety you might be feeling. Another form of benchmark that has been used is historical compensation data; however, these data may not reflect the scope of services or other factors that are necessary to derive reasonable current compensation amounts. Discussing the sensitive subject of money can be awkward. One of the considerations when juggling various job offers is salary. You can ask for a signing bonus and reimbursement for relocation expenses to put more money in your pocket right off the bat and make your transition easier financially. starting physician compensation packages for similar listings, and, more importantly, the negotiated physician compensation packages of physicians who have signed. 5 Critical Tips for Negotiating Physician Employment Contracts By Kristen Prinz Share. Job Boards and journal ads may be an excellent way to get introduced to your future employer, although few of the postings provide details about compensation, and even if they do, the final negotiated package … No one wants to hire a problematic physician. Objective data can include data from public sources, such as tax returns[7], and it can include data developed specifically for the situation at hand, such as through telephone surveys. The determination of fair market value compensation should be based upon multiple analyses or comparisons. Negotiating Physician Compensation Contracts, David H. Glusman CPA, DABFA, CFS, Cr.FA, CFF. The simplification of compensation arrangements has generally led to fewer options in the unit of compensation. All written content is for information purposes only. “The employer can say, ‘We received your 90-day notice and we’re going to accelerate the … When a compensation arrangement covers a full-time position, there should be a position description that describes the scope of authority, tasks to be performed directly by the individual, reporting relationships, the required skills and experience, and any licensing or certification requirements. The good news is that the complex physician-compensation structures of the early and mid-1990s, when managed care was prevalent, have been largely abandoned. The bonus was tied to achieving a set of quality targets and each doctor’s portion is determined on a per capita basis. [6] MGMA also provides some data on academic facilities and provides many other benchmarks for productivity. When an offer is made, don’t take too long to mull it over. Lauth O'Neill. On the other hand, you don’t want to allow negotiations to drag on without addressing the topic of your salary. Negotiating a restrictive covenant is critical because it prohibits a physician, post-employment, from treating patients in the very community where he or she has been developing a reputation. A fair market value analysis should also include a narrative that explains the rational for any special circumstances that affect the compensation. As the healthcare industry shifts toward value-based outcomes, physician compensation is gravitating toward similar value-based measures. Though most physician contracts are similar nationwide from a structural standpoint, there are some key provisions and terms that vary by organization and affect the overall quality of the offer. Today, a much wider range of opportunities is available in many different organizations – hospitals, health plans, pharmaceutical companies, medical management companies, consulting firms and medical device manufacturers. January 15, 2018. Look at Online Job Boards. Let’s examine the core elements of a reasonable compensation arrangement. The presence of this website shall in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the State of Nebraska, Arizona, California, Florida, Texas or where otherwise legally permitted. Money is a sensitive subject, and many physicians struggle with how best to bring it up. Each state differs slightly in the average physician’s salary. Related: Your Full Guide to On-Call Pay for Physicians. the services to be performed, 2.) 1 Focusing solely on monetary compensation. The IRS says fair-market value is “the price that property would sell for on the open market. All links have been provided only as a convenience. For example, in a recent CMS advisory opinion on the compensation arrangement between a hospital and its medical staff working together in a payer sponsored pay for performance program, the agency approved a variable bonus arrangement for the doctors. Be aware of company policy regarding compensation. Physicians tend to have more bargaining power with smaller practices. You don’t want to agree to terms less than you expected and be stuck with it for a lengthy contract. But doctors are also gatekeepers for other health services, which means physician compensation is closely linked to issues of health system governance, accountability, cost-effectiveness and quality. For example, the MGMA survey includes compensation at the median, 25th, 75th and 90th percentile[5]. Compensation must be directly related to the specific services that are performed and it must also incorporate any special circumstances that add to the complexity or difficulty in arranging for the services. He has been recognized as a national expert on physician and hospital related billing and managerial issues, including fraud and abuse, physician compensation models and information systems organization. As a physician, the employment market is generally in your favor - there are likely more physician jobs open, than there are physicians to fill them. Federal regulations have a significant impact on the nature and specific terms in many physician compensation agreements. The inclusion of any link is not an endorsement of any products or services by Physicians Thrive Investment Advisors, LLC. Asking questions shows that you are invested in this and want the best outcome for both parties involved. Salary Negotiations & Compensation for Doctors. When it comes to negotiating your salary for a new job, however, you might feel uneasy. Today, many physician employers are converting to production-based compensation models. As mentioned previously, when compensation arrangements come under scrutiny, the specific facts and circumstances of the situation are important elements in assessing if the terms reflect fair market value. These include links to websites operated by other government agencies, nonprofit organizations and private businesses. Still further, CMS compliance program regulations for hospitals and pharmaceutical companies are intended to prevent compensation that may lead to inappropriate or unnecessary services for patients. Kyle Claussen. Most hiring managers will approach physician salary negotiations in one of two ways: When the latter is the case, ask for a little higher salary than your best expectations but be willing to compromise. 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