Compensation Before Billing Kicks In

[gasresident1]

How do other groups pay associates in the firs one or two months of joining before billing actually kicks in? I feel like I'm billing and bringing into the practice more than I am getting at this point.

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[Arch Guillotti]

“Associates” usually get a salary. Only partners/owners reap the profits.

 

[NICMAN]

Simple, if you replaced a retiring doc then you get his revenue from the delayed 60-90 days billing-revenue cycle. If you are covering expanded services then the group should have a margin to pay your salary. If you are 1099 then it might take 4 months to reach a steady state of revenue.

 

[gasresident1]

I do not get a salary. It is eat what you kill, but unfortunately the prizes for my kills are delayed as stated above by the 60-90 day billing cycles. The margin I am getting paid is not what I am bringing in..ie: I know I'm bringing in well over 30k a month but only getting about half of that from the group as a compensation for now. I will not get the excess to my knowledge.

 

[Pappy Van Propofol]

Sounds like you need a new job.

 

[nimbus]

I do not get a salary. It is eat what you kill, but unfortunately the prizes for my kills are delayed as stated above by the 60-90 day billing cycles. The margin I am getting paid is not what I am bringing in..ie: I know I'm bringing in well over 30k a month but only getting about half of that from the group as a compensation for now. I will not get the excess to my knowledge.

If you are truly eat what you kill, there is delay from when you do the work until your group gets paid for the work that you did. Your actual collections haven’t come in yet, it will ramp up over 3-4months. If you are getting paid anything at all in the first 2months, your group is lending you that money to live on. When your collections actually roll in, the money they lent you will be deducted from your share of collections (also over a few months). In effect, your future self is giving your current self an advance. In the end, you should get the full amount. Why do you feel like you won’t be paid the full amount? There should be a clear formula for how much you get paid (eg $$/unit x units/month = $$/month).

The upside is that you will continue to get paid for a few months as your collections trail off when you quit or retire.

I’ve been in 2 eat what you kill groups and when I started the groups didn’t front any money at all, I just waited. Nowadays our group fronts some money at the start to help new hires get by.

 

[Arch Guillotti]

I do not get a salary. It is eat what you kill, but unfortunately the prizes for my kills are delayed as stated above by the 60-90 day billing cycles. The margin I am getting paid is not what I am bringing in..ie: I know I'm bringing in well over 30k a month but only getting about half of that from the group as a compensation for now. I will not get the excess to my knowledge.

Sounds like you are killing but not eating.

 

[Dr. Rude]

I do not get a salary. It is eat what you kill, but unfortunately the prizes for my kills are delayed as stated above by the 60-90 day billing cycles. The margin I am getting paid is not what I am bringing in..ie: I know I'm bringing in well over 30k a month but only getting about half of that from the group as a compensation for now. I will not get the excess to my knowledge.

Might even be longer for a new doc. Due to the added delay of initial credentialing with health plans,

 

[repititionition]

I am amazed that people as smart as doctors continue to take jobs without understanding their compensation.

 

[UscGhost]

Most eat what you kill groups delay your collections 30-90 days from DOS. Most around 45-60. That's because insurance doesn't pay for 2-3 months with trailing collections up to 12-16 months.

It's usually just a set pay cycle that you jump into. For example , all July cases get paid on Aug 15...so if you start in July 1, then you get paid Aug 15. If you start June then you get paid July 15. Delay at the start and then you get paid after you already left.

If you are replacing someone then the group doesn't notice a drop in pay per unit. If you are an additional person to cover additional cases, then the group is effectively fronting you money until the group collects on your behalf in 3-6 months.

If it's a large group, it's negligible.

Some groups may loan you money upfront and deduct it over time to normalize it if you want

 

[IMGASMD]

I am amazed that people as smart as doctors continue to take jobs without understanding their compensation.

Most new grads have zero concept of how they’re getting paid. Don’t get me started on those who trained in big academic centers, where seniority actually means something.

 

[abolt18]

If you are truly eat what you kill, there is delay from when you do the work until your group gets paid for the work that you did. Your actual collections haven’t come in yet, it will ramp up over 3-4months. If you are getting paid anything at all in the first 2months, your group is lending you that money to live on. When your collections actually roll in, the money they lent you will be deducted from your share of collections (also over a few months). In effect, your future self is giving your current self an advance. In the end, you should get the full amount. Why do you feel like you won’t be paid the full amount? There should be a clear formula for how much you get paid (eg $$/unit x units/month = $$/month).

The upside is that you will continue to get paid for a few months as your collections trail off when you quit or retire.

I’ve been in 2 eat what you kill groups and when I started the groups didn’t front any money at all, I just waited. Nowadays our group fronts some money at the start to help new hires get by.

A friend of mine started in a big PP group last year and it was like this. They have a blended unit, but units get paid out over several months after billed in fixed percentages (a made-up example, 10% month 1, 30% month 2, 40% month 3, 20% month 4).

Front you $7k the first month, take your check up to 7K the next month above whatever the 10% of first month pays out, the collections percentage the 3rd month usually exceeds 7K (10% of previous month billing and 30% of first month billing) so this is where you start paying back anything above 7K until it's paid back. Once paid off, you get all your units paid out fully.

 

[thinkorswim]

It could be worse. When I started at a new practice my first paycheck was a negative amount since I had to pay for health insurance.

 

[ucladoc2b]

We have a draw agreement. New hires are paid a $10k net, which is later repaid from our split revenue system.

We get paid out over five months what we earn in any given month.

 

[gasresident1]

You guys are absolutely correct, I misunderstood from the beginning.