Michael Johnson Legal LLC

You should probably consider being flexible on work location and scheduling. In many practice settings and geographic regions, physicians are paid less in some of the most attractive metropolitan areas. This runs counter to most industries, where employees in high cost of living areas receive higher compensation packages. Also, not all employers actually pay a premium for loyalty… In many specialties, and with many large employers, the one-off sweeteners (signing bonuses, student loan and retention bonuses) that are paid to physicians recently joining the practice make their compensation package higher than the loyal veterans. Paying close attention to your exit strategy and protecting your ability to pivot and change employers can be very beneficial for your total non-productivity-based compensation. Finally, depending on specialty and practice setting, some employers pay stipends for administrative, managerial, or a supervisory roles, and you could explore additional stipends for these services. #physicianemploymentcontract #physicianemploymentcontractreview #physicianemploymentlawyer #physician #physicians #physicianresident #resident #residents #medstudent #medstudents #medicalstudent #medicalstudents #DocsNegotiate2023

IF you want to make above average compensation as an employed physician, prioritizing a high compensation per wRVU rate instead of a high signing bonus or initial base salary is often most helpful! Here’s why: 📝

1. “But I want a big signing bonus or initial base salary!” 💰
Of course, everyone wants a big lump sum of cash upfront. However, it’s essential to think long-term. A high compensation per wRVU rate means that your earnings will be directly tied to your productivity, and employed physicians earning at the top of their field are often those with high production. This incentivizes you to work efficiently and can lead to higher overall earnings in the long run.

2. “Is the high wRVU rate really that important?” 📈
Absolutely. The wRVU rate is crucial because it determines how much you get paid for each service you provide. By prioritizing a high wRVU rate, you ensure that your hard work is properly compensated. It also aligns your interests with the practice, as it encourages productivity and quality patient care.

3. “What about the stability of a high base salary?” 💼
While a high initial base salary may seem appealing for its stability, it could also limit your earning potential in the future. I rarely see a guaranteed minimum salary that is significantly above the 50%ile. By focusing on a high wRVU rate, you have the opportunity to continuously increase your earnings based on your performance and productivity.

4. “I’m concerned about the risk of a lower guaranteed income.” 📉
It’s understandable to worry about a potentially lower guaranteed income, but it’s crucial to consider the trade-offs. A high wRVU rate provides the opportunity for higher earnings, as long as you maintain a productive practice. It’s about balancing the short-term security with long-term financial success.

5. “How can I negotiate for a high wRVU rate?” 🤔
Negotiating for a high wRVU rate requires a deep understanding of your worth, the market, external data, and the needs of the practice. This is all optional btw, but please know that it is rare to be highly compensated on low volume as an employed physician.