Career and Life Planning Workbook for Medical Residents

WWW . A D V E N T U R E S I N M E D I C I N E . C O M 75 | Knowwhat market factors the employer is considering . Many employers consult physician salary surveys and benchmarking studies. Several physician hiring organizations lean on MGMA’s annual Physician Compensation and Production Survey, which helps them understand how their practice and physicians compare. Understand that if you are looking to negotiate a higher compensation package, most likely some dollars will have to come out of somewhere else. | Consider the employer’s circumstances. 4HU` VYNHUPaH[PVU ZWLJPÄJ JPYJ\TZ[HUJLZ TH` PTWHJ[ `V\Y ULNV[PH[PUN SL]LYHNL such as whether the practice is forgoing revenue by not accepting new patients, using a locum tenens, starting a new ZLY]PJL SPUL V]LY^VYRPUN P[Z J\YYLU[ Z[Hќ VY L_WLYPLUJPUN JVTT\UP[` WYLZZ\YLZ [V OPYL H UL^ WO`ZPJPHU | Understand the Starke Law. The Starke Law regulates what a hospital may or may not do in recruiting new physicians. :[HYRL 7OHZL 000 JSHYPÄLK WO`ZPJPHU YLJY\P[TLU[ KV»Z HUK KVU[»Z [V LUZ\YL [OH[ HU` WH`TLU[Z MYVT H OVZWP[HS [V H WO`ZPJPHU are not prohibited payments for referrals. | Understand the employer’s biggest fears. These include hiring a physician who leaves within a year or two, falls short of productivity expectations, or is not a team player. ,TWSV`LYZ L_WLUK NYLH[ LќVY[ HUK ZWLUK [OV\ZHUKZ VM KVSSHYZ VU OPYPUN WO`ZPJPHUZ ;OL` W\YJOHZL THYRL[ Z\Y]L`Z KL]LSVW H TLKPJHS Z[Hќ KL]LSVWTLU[ WSHU HUK JHSJ\SH[L [OL JVZ[ VM UV[ OPYPUN H 7O`ZPJPHU 0U ZVTL VYNHUPaH[PVUZ [OL )VHYK VM Directors is heavily involved in physician hiring and compensation. >P[O ZVTL VќLYZ `V\ JHU ULNV[PH[L Z[HY[PUN ZHSHY` ZPNU VU IVU\Z SVHU YLWH`TLU[ [LYT VM HNYLLTLU[ UVU JVTWL[L YHYLS` call schedule, work schedule, vacation, CME, relocation package, and scope of practice, while other items are non-negotiable. How do you know what’s negotiable and what’s not? By knowing the market. | Research the demand by specialty, region and community. *VTWLUZH[PVU JHU ]HY` ZPNUPÄJHU[S` I` ZWLJPHS[` YLNPVU HUK community. For example, the ratio of family practitioners to population in the Midwest tends to be higher than in the Northeast, so the potential for practice growth and greater market share is higher in the Midwest. Similarly, in communities that are two hours away from a metropolitan area, employers generally pay higher salaries and may be more inclined to negotiate. For a detailed example, see Resource S-11 in the Online Resource Library. | Determine the revenue potential. Revenue minus expenses equals net margin, and the more net margin you can generate, the more room you have to negotiate. Sub-specialties may have more revenue potential because of higher reimbursement than primary care and therefore be in a better position to negotiate. | Understand the impact of practice type. The type of practice you’re considering—such as a hospital, solo practitioner, academic, independent contractor, or group employee with a track to partnership—will impact your power to negotiate. 4VZ[ HJHKLTPJ VWWVY[\UP[PLZ MVY L_HTWSL VќLY T\JO SV^LY ZHSHYPLZ HUK [OL JOHUJLZ [V ULNV[PH[L ZPNUPÄJHU[S` KLJYLHZL because the revenue generation in academic positions is less. Exercise: Establish your value and create the “Win-Win” In negotiation Step 1: Know Your Market Step 2: Understand the Employer’s Position CHAPTER 8 Contract Negotiation i r r .