What physicians must learn about compensation and advantages

Physicians receiving a brand new employment contract want to concentrate on points that may come up associated to their compensation and advantages. These are among the issues that must be fastidiously reviewed earlier than signing the settlement.


The settlement ought to clearly present what productiveness is predicted. You possibly can continuously gauge anticipated productiveness by the wage stage. If one employer is paying considerably greater than one other, it’s a secure wager that the higher-paying employer expects extra productiveness. The employer shouldn’t have the appropriate to unilaterally modify compensation, and the compensation supplied must be applicable when in comparison with benchmarks, such because the Medical Group Administration Affiliation (“MGMA”).

If you’re beginning with an employer, the majority of compensation must be a base wage as a result of the chance of inadequate demand ought to relaxation on the employer, not the doctor. If there may be productiveness compensation, you need to fastidiously overview the language to make sure that it’s comprehensible and internally constant. You need to have the appropriate to verify calculations of productiveness by the employer.

If productiveness relies on wRVU manufacturing, your productiveness shouldn’t be adjusted by compensation modifiers. A wRVU must be earned on the date of service, not when it’s billed. The timing of fee of any productiveness bonus must be specified.

Each settlement ought to present a signing bonus if you’re beginning on the employer or a retention bonus if you’re renewing the settlement. MGMA has benchmarks for signing bonuses, which must be consulted. The employer ought to provide a separate relocation allowance if you’re shifting to the world. Right here once more, MGMA has benchmarks to seek the advice of.

If the settlement offers that you could repay the signing bonus or the relocation allowance if the settlement is terminated, repayments must be forgiven on a month-to-month foundation. The time over which the bonus or relocation allowance is forgiven shouldn’t exceed the size of the assured base wage. You shouldn’t should repay the bonus or relocation allowance if the employer terminates the settlement with out trigger or due to a change in regulation, should you terminate the settlement due to a breach by the employer, or if the settlement is terminated due to your dying or incapacity.


The settlement ought to present compensation for some time frame while you’re disabled. A incapacity must be decided by a doctor mutually agreeable to you and the employer. If the employer affords incapacity insurance coverage, you need to affirm that the coverage defines a incapacity as an incapacity to work in your “personal occupation.”

Trip must be per MGMA benchmarks. Most employers present an allowance for CME (which may be checked in opposition to MGMA benchmarks) and pay medical workers dues for sustaining privileges. The settlement also needs to present that medical licensure and DEA and state equal charges can be paid by the employer.

Most employers present a cellphone and utilization plan and a laptop computer laptop. Some employers present mileage allowances for journeys between places of work and hospitals and pay the dues for the AMA or AOA and state and native medical societies. Some employers additionally pay the dues for a number of specialty societies.

It’s typically attainable to barter medical faculty debt help and to obtain a fellowship or residency stipend whereas in coaching. Board certification and recertification bills must be individually reimbursed quite than included within the CME allowance.

The employer’s discretion to vary advantages ought to solely apply to learn plans the employer is buying from a 3rd get together or is providing as a tax-qualified plan. Though an employer can not assure deductibles on your medical health insurance plan, for instance, the employer shouldn’t be permitted to unilaterally amend schedules concerning trip, CME allowances, or different advantages that the employer will not be counting on a 3rd get together to offer.

You ought to be conscious if advantages are charged in opposition to you within the calculation of compensation. Lastly, you have to be conscious of compensation that’s associated instantly or not directly to the worth or quantity of referrals, as these are prone to run afoul of the fraud and abuse legal guidelines.

Dennis Hursh is a doctor contract lawyer. He blogs at Physicians Contracts Blog.