When it comes to physician job search priorities, physician compensation is always near or at the top of the list. This is especially true of early-career physicians. After years of medical school, residency, and potentially a fellowship, physicians enter the job market with an average student loan debt of $250K. So, finding physician jobs with competitive compensation packages and attractive recruitment incentives is not just a preference but a necessity. However, the expectations versus the realities of physician compensation don’t always align. It’s important to ask questions and fully understand the details of any physician compensation package you are considering.
Your physician recruiter will likely give you a high-level overview of the compensation package, but compensation models can be complicated and confusing. Understanding the specific physician compensation model a hiring organization uses will give you a clearer view of your total earning potential. Your physician recruiter can talk you through the basics, but you will certainly want to cover the following three questions.
1. What happens after the physician salary guarantee?
Most organizations offer a minimum salary guarantee for the first years, but a specified compensation model will determine how much you earn after this predetermined period. Be sure to cover the following points related to the salary guarantee and beyond.
- Is the physician salary guarantee a minimum base, or is it also a cap? That is to say, if a physician exceeds wRVU expectations during the guarantee period, can they receive more than the base salary?
- How many wRVUs do most physicians in this practice produce? How does physicians’ productivity here compare to national norms?
- Is there a cap on RVU bonuses?
- What is the payer mix, and how does it impact physician compensation?
- What is the earning potential based on worst- and best-case scenarios and previous provider performances (years one, three, five, ten)?
2. What incentives are available?
- Ask about first-year incentives, such as signing bonuses, student loan repayments, and reimbursement for relocation, licensing, and board certification. How are these incentives paid out?
- Find out if there are bonuses related to achieving retention milestones or if ownership shares are an option down the road.
- Find out what production, quality, and patient satisfaction metrics you must achieve to earn an incentive bonus.
3. What do other physicians in the practice/department earn?
Transparency is critical. Of course, an organization can’t tell you who is earning how much. However, they should be able to share earnings anonymously. Ask how much the highest and lowest earners produce. Consider other factors, such as how many days a week they work. Bottom line: What are other physicians earning? Regardless of specialty, how do the physician earnings compare with benchmarks for the rest of the country?
Reputable Physician Compensation Data Sources
Prior to meeting with potential employers, it’s wise to do some homework using the available physician compensation data sources. Of course, some sources will be more accurate and reliable than others. Overwhelmingly, compensation data found through MGMA is considered the “gold standard” as a data source. Many healthcare administrators utilize the information published by MGMA as their benchmark for compensation data.
It is wise to check other sources for a complete picture. However, be aware that when data is self-reported, it may or may not include benefits and bonuses. Regardless, it can be useful in setting a range for your expectations.
- Medical Group Management Association Data Reports
- American Medical Group Association® Compensation Survey
- American Association of Medical Colleges Data & Reports
- Medscape Annual Compensation Report
- Doximity
- U.S. Bureau of Labor and Statistics Occupational Employment Statistics
Some of the resources listed above require you to purchase the data, while others are published free of charge. Don’t overlook the Jackson Physician Search Salary Calculator for estimates by specialty and location.
Wait for the Right Time to Discuss Physician Compensation
There’s no doubt that physician compensation is a critical component in any job search. However, we recommend you resist the urge to bring up the details of physician compensation until your on-site physician interview. Asking too early could leave employers feeling that you only care about compensation. However, when the time is right, don’t be afraid to dive into the details and explore the questions listed above. If you are still unclear, your physician recruiter can also be a wealth of information regarding physician compensation, helping to set your expectations in the beginning and working to negotiate a competitive offer in the end.
If you have questions about physician compensation trends as they relate to your job search, the team at Jackson Physician Search is happy to share our insight with you. Reach out today to learn more.
Explore Additional Articles on Physician Compensation
The Physician Career Resource Center provides articles, whitepapers, and infographics designed to help physicians through all aspects of the physician job search, including physician compensation.
