Career and Life Planning Guidebook for Medical Residents

targets from the employer. Physicians should verify what those expectations are before agreeing to the additional compensation.” From an employer’s perspective, the longevity of a physician weighs heavily on their mind. Again, one of most common reasons’ physicians resign after a year or two is that they can’t maintain their income on productivity I’ve seen too many physicians purchase homes and cars and create a lifestyle based on their first-year guaranteed compensation. Those who are unable to sustain the same or greater level of income on productivity may end up feeling under-valued and may look for a new position with another guaranteed salary. Some physicianswork for six or seven different employers over their first ten to 12 years of practice. Suffice it to say, you do not want to find yourself in that situation. To avoid this pattern, I recommend placing as much focus on the big picture in your negotiations as you do your initial salary. You must consider what it will take to maintain or increase your income over time. Before negotiating, ask your prospective employer the following questions to assess what is needed to generate an acceptable income when you transition to a production-based salary: Can you walk me through the compensation structure? Is there a productivity formula? If so, how does it work? If I perform well, what is the income potential for the first, second, and third years? Do you anticipate acquiring any new systems that will impact and improve patient flow? Describe the process and formula you use in transitioning from a guaranteed salary to productivity compensation. How have other physicians adapted to the change after the guaranteed period? How many patients will I need to see to generate the required RVUs per year? What is the waiting period for new patients to see a physician in my specialty? How busy will I be from day one? Will the hospital help market my practice? If so, what is included in the marketing? What are my responsibilities in building a successful practice and are there bonuses for reaching patient goals? Are there patient satisfaction and quality goals? If so, are there bonus rewards? By asking these questions, you will gain a keen understanding of how the productivity structure works, and you’ll be able to set forth a plan to maximize your productivity to meet or exceed your post-guarantee incomegoals. Andbydemonstrating your understanding of the production formula, you may ease the new-hire anxiety of the employer and negotiate a better compensation package. Financial Costs to Replace a Physician Estimated turnover costs to replace a physician are as much as $1 million per physician when all recruitment, start-up, and lost revenue costs are factored in. Retention of good physicians is a critical strategic priority for the financial health and patient satisfaction of an organization. (3) Compensation is an important factor when determining which opportunity is best for you, but is not the only consideration, and for some it may not be the most important. The Art of Physician Negotiation 295 WWW.PHYSICIANCAREERPLANNING.COM