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What is production

Discussion in 'Family Medicine' started by dj_smooth, Oct 9, 2003.

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  1. dj_smooth

    dj_smooth Member

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    I have been looking at FP jobs and see a lot of them say you will have x guaranteed salary + production. What is production and how much is it usually worth?
  2. seattledoc

    seattledoc Senior Member

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    Production depends on how much you produce! Which is related to how many patients you see and the difficulty of each patient.

    e.g. lets say the base salary is $100k for a 4 day per week job. If you see 15 easy patients a day, your production (how much the ins co pays your employer for your work) will likely be less than your salary and you'll receive no production pay.

    If you see 25 complicated patients per day, the ins co will likley reimburse you employer more and you'll get some production bonus on top of your $100k salary. How much is entirely up to the employer and you and should be explicitly detailed in the contract

    So the answer is it depends!
  3. dj_smooth

    dj_smooth Member

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    Thanks for the explanation. I am wondering, then, is production really going to add much to your salary? I guess if you see a million patients a day maybe it'd be worth it, but that seems like quite a trade off.
  4. seattledoc

    seattledoc Senior Member

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    If you're willing to sit through the long explanation...
    Many employers will set up a tiered system where the first block of work done in any given month is paid at a certain rate and then the next block is paid at a higher rate (presumably because the first block partially went to pay for overhead (assistants salary, rent, etc)

    So, the incentive is to reach the higher tier because you get paid more for each patient, kind of like overtime.

    You will learn what an wVU is at some point (work relative value unit. It is what each patient encounter reimbursement is based upon.

    e.g.
    simple visit, established patient 99213 worth 0.67 wRVU
    more complicated 99214 worth 1.1 wRVU
    OB care and delivery worth 23 wRVU

    so the employer may pay $25 per wRVU for the first bit permonth, if you see more patients that month once you hit a certain threshold each wRVU may be worth $35, then you'll hit another threshold if you see even more patients and the last tier may be worth $50 per wRVU because by then you've paid your overhead.

    If an employer is smart they'll keep your base salary low to incentivize you to see more patients to get production pay.

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