Career and Life Planning Guidebook for Medical Residents

The total compensation packages may vary significantly based on the community size. The greater the area, the lower the compensation. For example, a starting compensation package for a family physician in Chicago may range from $130,000 to $160,000 compared to a starting compensation package of $250,000 in a small community. Another example; a starting compensation in Chicago for a gastroenterologist may be $250,000, compared to a starting com- pensation package of $600,000 in a small-sized community. Please note creating a rule of thumb is quite difficult due to several compensation factors and the constantly changing markets. Again, these assessments are loosely based on demographic classification only. There are exceptions to the rule, but thisdata shouldprovide insight onhowemployers apply physician compensation survey data to establish starting compensation packages according to the respective demographic classification. Practice Type The type of practice you’re considering—such as hospital employed, solo practice, academic, independent contractor, or group employee with a track to partnership—will impact your power to negotiate. Academic: The pay for academic positions is, in general, significantly lower than other practice types because the academic and administrative portions take away the opportunity to generate revenue like other practice types. Because of this, it is more difficult to negotiate compensation. Physician-Owned Group: Physician-owned groups are overall competitive in salary, but generally offer less than hospital- employed practices. Because this type of group generally operates on a production-based “eat- what-you-kill” basis, you may find they are less inclined to negotiate and offer shorter guarantees. Hospital Employed: Hospital-employed positions tend to be the most competitive in salarycompared to the other practice types because they capture additional revenue from ancillary services each employed physician generates. This helps to offset the cost of higher physician salaries. Solo Practice: For physicians who are seeking to work as a solo practitioner, hospitals may consider paying you an income guarantee which is basically a forgivable loan, in exchange for your commitment to practicing in the area for a specific length of time, generally four to five years. Be aware though, that the higher the loan (Income Guarantee), the more risk you carry to repay the loan if you leave before completing your commitment. The total compensation packages may vary significantly based on the community size. SECTION III: T MINUS ONE YEAR CAREER AND LIFE PLANNING GUIDEBOOK FOR MEDICAL RESIDENTS 298