Compensation is one of the most powerful tools in recruiting and retaining physicians, APPs, and...
Physician Salary Negotiation : Factors & Quick Tips
As more and more physicians are moving away from private practice and gravitating towards employment with hospitals and large medical groups, it’s critical they understand the physician compensation landscape when negotiating a satisfactory employment contract.
Top 3 Factors Determining Physician Salaries:
- Specialty: Specialty is a major determining factor. Knowing where a particular specialty falls in the spectrum helps physicians in negotiating salaries.
- Location: Physicians in mid-size and rural areas earn higher salaries than urban areas due to supply & demand. Identifying locations having higher demand enables physicians to demand higher compensation.
- Type of practice: Size of the practice matters. While salaries in hospitals & health organizations are based on RVUs, physicians often have more leverage with private smaller practices where pay is affected by financial performance.
What to Ask During Salary Negotiations?
Negotiations aren’t easy for any professional and handling them in a much more professional manner can help you bag the offer on a fruitful note. The best way to deal with an employment contract is to take a serious and balanced approach. The negotiation process might seem nerve-wracking but remember, it is perfectly fine to ask a lot of questions at this stage for the best outcome for both parties involved. But do you know what questions to ask?
- Ask questions that concern your ability to deliver instead of just asking the ones that involve your interests.
- Ask for clarification if you come across any terms or clauses that you don’t understand within the contract.
- Determine your Best Alternative to a Negotiated Agreement (BATNA). Have a backup plan as a counteroffer to the preliminary offer.
- You may also ask what a typical day for physicians is like to get a feel of the culture and the duties involved.