Career and Life Planning Guidebook for Medical Residents

Mr. Skertich, who has helped negotiate more than $500,000,000 in physician compensation over the past 20 years, states, “Each employer interprets the survey data differently based on their region (geographic location), demographic classification (community size), practice type, and several other factors to determine their guaranteed offer to a new physician. The Demographic Classification (size of community) is a one of the most significant factors with the greatest impact on the starting salary. For example, an interventional cardiologist was offered a position at two different organizations. The first position in Chicago offered a starting salary of $250,000 and a second position located in a mid-sized community located 90 minutes from Chicago offered a starting salary of $500,000. As another example, a family physician candidate received the three below offers: Metropolitan Medium Small - Rural Population 2,700,000 150,000 10,600 Starting Salary $180,000 $250,000 $265,000 Sign on Bonus $0 $50,000 ($16,666 forgiven annually over 3 years) $50,000 ($10,000 forgiven annually over 5 years) Residency Stipend $0 $0 $12,000 Total Cash Compensation $180,000 $300,000 $337,600 The difference between the position located in a metropolitan area and the small community is $145,000 before calculating an additional $25,000 per year in loan repayment as the facility site qualified as an underserved area. This doesn’t mean every family physician located in a small communitywill receive a first year guarantee of $295,000 or that every position located in a metro area will offer you a total guaranteed compensation of $150,000, but it should provide insight on how guaranteed compensation can differ among community size. Although, there are exceptions to the rule, generally, “guaranteed” compensation packages are higher the further you are from a metropolitan area and lower as you move closer to a big city.” SECTION II: T MINUS TWO YEARS CAREER AND LIFE PLANNING GUIDEBOOK FOR MEDICAL RESIDENTS 220