Compensation portion of a contract

[anes121508]

Hi all,

New to this stuff...

Received a contract that mentions at the end of the compensation portion how the compensation is subject to change from time to time as seen fit by the practice without consent of the physician as long as 30 days notice is given.

Compensation is a percent of the partner pay.

This seems odd, why might a group include this? (Assuming they have good intentions)

Thanks!

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[Wiscoblue]

You need to provide more information. Are you going to be an employee? Is it a partner track? Is the compensation dependent upon a certain unit value or is it a floating blended unit?

 

[ghastly75]

Hi all,

New to this stuff...

Received a contract that mentions at the end of the compensation portion how the compensation is subject to change from time to time as seen fit by the practice without consent of the physician as long as 30 days notice is given.

Compensation is a percent of the partner pay.

This seems odd, why might a group include this? (Assuming they have good intentions)

Thanks!

hi-
I received a pp partnership track offer that provided a pretty low base salary and then a percent of the partners bonus. Both the base and bonus are lower then partners and subject to change based on the language in contract...have a lawyer or physician contract specialist look over. they may be able to provide valuable information for your region that could provide leverage to negotiate. Often these contracts are written entirely favorably for the "group" not the "physician". good luck

 

[ranvier]

How much notice is required to resign or have the contract terminated by either party? Can you speak with current employees on the same track? The whole point of a contract is to spell out terms....good intentions are for a handshake deal.

 

[aneftp]

Have the partners disclosed that bonus and other compensation is disclosed to the entire group?

It needs to be an open book for everyone to see. Or else they can just make stuff as they go.

 

[anes121508]

You need to provide more information. Are you going to be an employee? Is it a partner track? Is the compensation dependent upon a certain unit value or is it a floating blended unit?

It's a three year track to becoming partner.

My understanding is that partners are paid based on a point system. Points are accumulated by hours of work in order to make it fair. Was given the example, you work 10 hours for 10 points and you get 10% of the money in the pot (assuming 100 points ttl by group)

As non partner I would get a percentage of the points and pay.

 

[anes121508]

Have the partners disclosed that bonus and other compensation is disclosed to the entire group?

It needs to be an open book for everyone to see. Or else they can just make stuff as they go.

Completely open.

 

[anes121508]

How much notice is required to resign or have the contract terminated by either party? Can you speak with current employees on the same track? The whole point of a contract is to spell out terms....good intentions are for a handshake deal.

90 days....I guess if I gave my 90 day notice, they could give me the 30 day notice that I'm only going to receive X amount of dollars for the last 60 days....is that accurate?

 

[Man o War]

Hi all,

New to this stuff...

Received a contract that mentions at the end of the compensation portion how the compensation is subject to change from time to time as seen fit by the practice without consent of the physician as long as 30 days notice is given.

Compensation is a percent of the partner pay.

This seems odd, why might a group include this? (Assuming they have good intentions)

Thanks!

Because their compensation is fluid depending on collections, subsidy changes, payor mix changes, etc. As a partner, my income is somewhat variable depending on market forces, especially in this age of huge deductibles that patients can't/won't pay. I understand the need for such a clause, but only a 30 day notice seems unreasonable to me.

 

[pjl]

Because their compensation is fluid depending on collections, subsidy changes, payor mix changes, etc. As a partner, my income is somewhat variable depending on market forces, especially in this age of huge deductibles that patients can't/won't pay. I understand the need for such a clause, but only a 30 day notice seems unreasonable to me.

The only issue I see is that they are talking about changing a % of partner, which does not make sense to me. The actual income is VERY likely to go up and down hundreds of thousands over 3 years, but the % partner would not need to change in that scenario.
Make them give you same notice for this change as you have to give to quit. Both 90 days seems fair.


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[anes121508]

The only issue I see is that they are talking about changing a % of partner, which does not make sense to me. The actual income is VERY likely to go up and down hundreds of thousands over 3 years, but the % partner would not need to change in that scenario.
Make them give you same notice for this change as you have to give to quit. Both 90 days seems fair.


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Agree. This would make the most sense to me.

 

[pjl]

Agree. This would make the most sense to me.

As I looked at it more, maybe they switched to their current system from a days worked or something, and had someone in partner track and it made it hard to switch to hours worked due to contract. Maybe they are just trying to protect in case over the next 3 years they wanted to go to days worked or some other formula.


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