Career and Life Planning Guidebook for Medical Residents

R E A D : Market Driven Factors In almost every industry, salaries in metropolitan areas are higher than in non-metropolitan areas. For example, the annual mean employment wage in the Chicago Metropolitan Area is $55,670 (4) compared to the annual mean wage of $44,960 in Rockford, IL, just 88 miles from Chicago (5). For physicians, this is almost always reversed with starting salaries significantly lower in metropolitan areas versus non-metropolitan areas. For example, a starting salary for a family physician in Elgin, Illinois, just 40 miles from downtown Chicago, is $130,000, but in Rockford, Illinois, only 45 minutes northwest of Elgin, the starting salary is $220,000, plus a signing bonus. Trying tonegotiateasalaryinElginbasedon thesalary in Rockford will be an exercise in futility because of the vast difference in the supply and demand of physicians. There is a greater number of physicians looking for positions in the larger metropolitan areas compared to smaller markets. Because of this, smaller markets like Rockford are forced to compete with higher compensation packages. Whether or not you will be able to negotiate your offer will depend on the type of practice, geographic region, community size, supply and demand of specialty and the employer’s circumstances. Physician Compensation Data Employers use a combination of data to determine physician compensation, including: Physician compensation surveys conducted by national healthcare organizations. Production analytics from their physicians within the same specialty Supply and demand of specialty Urgency of the need Compensation data fromother employers located in similar markets Candidate specifics such as practice experience, previous production history, references, and even training programs Julia Zimmerman, Vice President of Swedish AmericanMedical Group and Regional Development at SwedishAmerican Health System, uses a three-prong approach to determine physician compensation. Julia shares: SECTION III: T MINUS ONE YEAR CAREER AND LIFE PLANNING GUIDEBOOK FOR MEDICAL RESIDENTS 296