Get the Right Provider Compensation in 3 Steps
Ashley Shaw Esq
Founder of Contract Rx | Negotiator of Better Physician Contracts | Master of Getting Physicians A Better Deal
Physicians often worry about compensation. Whether their contract has the right pay is a common concern that physicians have before signing a provider contract. Contract Rx is here to help physicians get the right compensation in their provider contract with just 3 simple steps.
Step One
You have to understand the different provider compensation models available to you as a physician. There are 3 main compensation models.
The Salary Model. The most common model. A physician is paid a set salary regardless of patient facing hours, patient flow or hours worked. This model may come with a bonus or a salary guarantee for a set period of time.
The Hourly Rate Mode. Most common model in emergency medicine. A physician is paid a set hourly rate regardless of patient flow. A higher rate can be negotiated for certain circumstances (i.e. overnight hours, last minute scheduling).
The RVU Model. This model is gaining popularity. A physician is paid based on productivity. Productivity is tied to a set formula based on patient flow, patient facing hours, the type of services provided and the CPT codes submitted.
Step Two
Get the model that works best for you. The wrong compensation model can literally cost you thousands! Nobody wants to earn less than your peers or work longer hours to earn the same as their peers Getting the right compensation model is a Must!
The Salary Model. Pay under this model is predictable. This model is typically present in specialties or areas with low or unpredictable patient flows. Ideal for physicians in rural areas or physicians early in their career or new to an area and building a practice. If you want more work life balance, this model is best for you.
The Hourly Rate Model. Pay under this model is predictable. This model is typically seen for shift work specialties. Also ideal in most areas and at any stage of a physician’s career. CAUTION It is gaining popularity for this model to be paired with an RVU bonus and a lower hourly rate. In such circumstances, this model is not ideal if you may have a lower productivity rate or a low patient census.
The RVU Model. Pay under this model is very unpredictable and can be complex. A physician can earn more with high productivity and services that render higher RVU points for CPT codes. However, a physician can also be negatively impacted by decisions beyond their control (i.e. low patient census, no shows and administrative factors). Physicians that do well under this model are often have high patient flow, consistent patient flow or services that render higher credits for CPT code submissions. This model is also ideal for physicians that are okay with possible longer patient facing hours. CAUTION This model can yield lower pay for physicians that are also caretakers or required medical leave for any reason. There are complaints that this model has been use to portray caretakers as low performing and reduce pay.
Step 3
The final step is to make sure you are not underpaid. Whatever the compensation model, it should be at market or BETTER! There are a lot resources that you can use to sense check your compensation. Free resources are: salary.com and payscale.com. For a comprehensive report, check out the Annual Medscape Physician Compensation Report and the American Medical Group Association Annual Compensation and Productivity Survey. The most important resource available to you are your peers and colleagues. Don’t be afraid to talk to them. If you are not comfortable talking to them about pay, Doximity and Facebook groups for physicians (like Contract Rx) are great safe spaces to ask these questions. Join these spaces and talk about pay. The main takeaway: DO YOUR RESEARCH! Do not rely only on a recruiter's promises. A recruiter’s bonus is often tied to getting you to accept less pay.
We hope you found this helpful. If you have any questions or need help getting the right compensation in your provider contract, please contact Contract Rx at [email protected].
Author: Ashley Shaw, CEO & Founder of Contract Rx