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Of the many things you’ve been taught in medical school, how to negotiate a salary is not one of them. In fact, during your residency and fellowship, your compensation was likely based on your postgraduate year level (or PGY) with some geographic considerations, so you probably haven’t had any need to know how to negotiate a salary for at least the last three to six years. Between understanding wRVUs and productivity bonuses to deciphering whether the CME allowance, relocation reimbursement and sign-on bonus are all adequate, it can be a bit intimidating even for more experienced physicians. How do you know if what you’re being offered is fair and equitable?
Understanding physician compensation structures doesn’t generally have to be as complicated as the wording contract makes it out to seem, and negotiating the compensation terms for a job you’re really vying for are much easier when you have these three secret weapons under your lab coat.
Do your research
You can’t possibly know whether or not what you’re being offered is fair if you don’t do any research on your own first. Utilize online resources such as PayScale and Doximity to see what the average salary is for physicians in your specialty and in the city the position is located in. Likewise, be sure to investigate what the cost of living is for the area, as this is an important factor to consider.
If you happen to know another physician who works for this employer, depending on the nature of your relationship, it’s acceptable to consult with them on their thoughts about the compensation plan and other benefits. Even talking to former classmates about what offers they’re receiving for your specialty can be a good way to gauge your offer.
Likewise, if you’ve received an offer and are having difficulty understanding how certain productivity bonuses are paid out by the employer, you can also ask to see a sample pay stub from other physicians in the group with the names removed. Researching the salary data on your own is a must as it empowers you to advocate for yourself and further ensure you’ll be fairly compensated.
Be confident in your worth
Consider your strengths, accomplishments, professional interests and what clinical skills you have honed in on; then as you interview for positions, take notice of how these facilities and practices are lacking in areas that you could easily fill. You must be confident in the value that you will bring to a team so that it will in turn be easy to convince potential employers of why they should offer you a salary that matches your worth.
Consult an attorney
A contract is the framework for your working relationship with your employer. It’s especially important to consult an attorney who is experienced in negotiating physician contracts, and not just for the compensation aspects. Physician attorneys, such as Lauth O’Neill, are not only versed in concepts like non-compete clauses, partnerships, buy-ins, etc., but we’re also specifically adept in salary data and other forms of compensation. In our Analyze and Shape services, we are able to do just that- analyze and shape your contract to fit your individual needs so that the contract is fair and balanced. Our contract review services include a phone consultation and a thorough review of your contract with a formal comment letter that includes our easy to understand recommendations for various aspects of the contract, including a compensation breakdown. We take the guesswork out of compensation data by informing you of what’s standard and fair, and by comparing your offer to the MGMA DataDrive Provider Compensation (a service which provides a unique and accurate analysis based on your exact region of employment, specialty and experience). From there, we’ll also help you formulate follow-up emails to your potential employer, negotiate on your behalf and provide a final review of all contract revisions.
Remember, everything is negotiable
Some employers may not be willing to budge on certain aspects of their compensation plans; in some cases, the employer may offer standard rates across the board for every physician just starting out in the practice. That said, remember that everything is negotiable; there are still many alternatives to ask for in addition to increases to your base salary like more PTO, a sign-on bonus or relocation expenses, the ability to hire your own NP or PA, and much more. Furthermore, if your base salary is less than what you feel you deserve, but the employer isn’t willing to budge just yet, you can also ask for the contract to provide the opportunity to renegotiate your base or incentive pay after one or two years of employment. When it comes to negotiating, it never hurts to ask as you may be pleasantly surprised by what the employer says yes to.
Remember to be pleasant in your negotiations. This will build the right environment for a constructive discussion and a positive working relationship once the offer is signed.