Doctors
Save time finding the right place for you. Keeping on top of postings from facilities across various States can be daunting. Let AMP handle the task while you focus on the conversation.
We love sharing our testimonials and letters of recommendation from our partners - just fill out this quick form and we'll shoot some great references over to you!
Save time finding the right place for you. Keeping on top of postings from facilities across various States can be daunting. Let AMP handle the task while you focus on the conversation.
When evaluating practice opportunities, it is essential to understand your compensation model for the long hours and specialized care you will provide. Below is a brief break down of several of the most common physician compensation models to help you know what will, or won’t, be a good fit for you.
1. Straight Salary – As the name implies this type of compensation model offers a guaranteed annual salary. Typically, the salary is guaranteed for the life of the contract and is up for negotiation when the employment agreement comes up for renewal.
Pros – Your compensation is guaranteed up front and not impacted by patient volumes, collections, etc.
Cons – There is no incentive for seeing higher volumes of patients and the salary can sometimes be lower to off-set the annual guarantee.
2. Salary Plus Productivity – This model offers base compensation along with a productivity incentive that can be measured in several ways (see a few examples below). When evaluating a position that provides salary plus productivity make sure you clearly understand if the salary remains intact, will reduce or go away completely over time. Most salary plus productivity models set a threshold and then pay you a portion of what is produced over that threshold. For example, your compensation could be a salary of $200,000 annually along with 50% of collections exceeding $500,000 annually.
Pros – You have guaranteed compensation, with the ability to increase your take-home pay by treating more patients, more complex patients, or picking up extra work (depending on the productivity model).
Cons – Your income could be impacted by factors outside of your control. For instance, the efficiency of office or clinic staff, no-show rate of scheduled patients, how reliant the clinic is on walk-in patients. Typically, the collections rate of the clinic, the socio-economic status of patients, etc. impact the amount paid per encounter.
3. Straight Productivity – As the name implies this employment model bases your compensation strictly on your productivity. There are a variety of productivity models, several listed above, in which your income could be based upon. Many employers will offer one or two-year salary guarantees but eventually, the guaranteed salary will go away, and you will be compensated strictly on a production-based formula.
Pros – You have complete control over your level of income. Typically, this type of compensation model offers the most autonomy for an employed setting when it comes to scheduling, work volume or time off. This model can be the most lucrative for that reason.
Cons – There is no guaranteed compensation to fall back on. If you take time off or are forced to miss work due to illness, this can impact your income.
4. Net Income Guarantee – This model is rare but worth mentioning. Generally, a hospital or health system would offer an income guarantee, essentially a loan, for one to two years for a physician to open a private practice in a given location. Typically, at the end of the guarantee period, the guaranteed money would be forgiven in two to three years. You would be accepting a loan from a hospital or health system to set up your private practice.
Pros – You will have complete autonomy. You will decide where and how big your clinic is, how you will staff your practice, how many patients you see, etc. You will be entirely in charge and in most case eventually own your practice.
Cons – In addition to practicing clinical medicine, you will be responsible for running a practice. Running a practice can entail staffing, billing, collections, and much more.
5. Partnership – Partnerships can take on many forms depending on specialty, size of the group, ownership of ancillary services, etc. Partnership offers the opportunity to be an equal ‘partner’ in a practice. Generally, this entitles you to ownership over physical assets and gives you a voice in how the practice operates.
Pros – Depending on the practice, this can be a very lucrative model, especially if the practice owns physical assets (surgical center, etc.). It also provides you with input into how the practice operates on a daily basis.
Cons – Most partnerships require a cash buy-in, although some will offer a full or limited partnership after a period of ‘sweat equity.’