Career and Life Planning Guidebook for Medical Residents

COMPENSATION AND OTHER FINANCIAL INCENTIVES: Salary: Salaries may significantly vary based on the specialty, employer type (hospital, medical group, academic), geographic region (Midwest, Northeast…), demographic classification (metro, suburban, rural…) and practice experience. Be sure to review this in more detail in our chapter on compensation. Generally, salaries are guaranteed for one to three years. Some positions, like, urgent care and emer- gency medicine may pay an hourly rate. Production: Understandably, physician candidates focus on the guaranteed compensation when signing an employment agreement,. However, most traditional employed physicians will transition to a production- based compensation plan, such as, Work Relative Value Units (“wRVUs”), gross charges, net collections, EBIT, etc. Physicians who take the time to understand how the production formula works and who can forecast how many RVUs, patient visits, procedures, etc. will significantly increase their chances of stayingwith the respective employer for years after their guaranteed salary expires. Signing Bonus: A signing bonus is a sum of money paid to a newly employed physician as an incentive to attract a candidate to join that company. Sometimes, signing bonuses are structured as a forgivable loan over the term of the agreement. Below is an example scenario: Signing Bonus: $12,000 Term: one year (12 months) Candidate leaves after six months of practicing For this example, $1,000 is forgiven for each month the physician is employed. If the physician leaves after six months of employment, the physician technically owes the employer $6,000. Student Loan Forgiveness: Student loan forgiveness is structured similarly to signing bonuses. If you stay through the term of the contract, the loans are forgiven. However, if you leave prior, you may be responsible for paying back the loans proportionally. SECTION III: T MINUS ONE YEAR CAREER AND LIFE PLANNING GUIDEBOOK FOR MEDICAL RESIDENTS 316