Contract Information?

Panacea Financial Contract Review
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Rowdy Burns said:
Anybody have some links of info on negotiating your first contract? The do's and don'ts?
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Know what you want - money, days off, call, sign-on/moving/loan repayment. I always try and negotiate out of the noncompete. 90 day out is standard, its often wise to shoot for less.
 
All numbers are negotiable. Make sure if you resign early you don't pay the tail coverage. No non-compete clause. Make sure if you quit you don't pay any money back. Remember that FP is THE hot commodity currently, they expect you to counter offer. Know what is important to you. It's all about perspective.

180K/yr = 15,000/mo gross= 9500/mo after taxes. Sounds like a lot of money. As locums on my current job, I make that in ONE WEEK. Know what you are worth. Be sure you lawyer looks at everything.
 
VA Hopeful Dr said:
Know what you want - money, days off, call, sign-on/moving/loan repayment. I always try and negotiate out of the noncompete. 90 day out is standard, its often wise to shoot for less.
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Loan repayment? Is that common? What is a good number for that? 20-30k/year...
 
BestDoctorEver said:
Loan repayment? Is that common? What is a good number for that? 20-30k/year...
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Depends. Most of my residency class that went more rural ended up with deals lik 60-75k for 3 years of work. In a more urban location, I'm seeing 30k for 3 years.

You can always ask for it, as CB says with FM you can ask for whatever you want and usually negotiate for a middle ground.
 
cabinbuilder said:
All numbers are negotiable. Make sure if you resign early you don't pay the tail coverage. No non-compete clause. Make sure if you quit you don't pay any money back. Remember that FP is THE hot commodity currently, they expect you to counter offer. Know what is important to you. It's all about perspective.

180K/yr = 15,000/mo gross= 9500/mo after taxes. Sounds like a lot of money. As locums on my current job, I make that in ONE WEEK. Know what you are worth. Be sure you lawyer looks at everything.
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It does, but not when you have to make a $3,000 payment every month toward your student loan, then you are left with $6500/month.
 
How does loan repayment actually work?

Does the employer pay the loan directly?

Does the income just get added to your regular income?

Do you have to show that the money went towards a loan?

Do you even have to have a loan?
 
In the private sector, "loan repayment" is just compensation, no different than a signing bonus. It's taxable.
 
BestDoctorEver said:
$1225/month? You must have a 30-year repayment plan... I was talking about a 10-year plan.
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I guess I just have a different perspective. I graduated residency at 40 so I am spending my money on my kids while they are still at home. It took me 17 years to pay off my undergrad loans. My grad loans are such low interest they can just sit there for now while I have fun. I scrimped my whole life and I just don't want to do it any more. They will get paid eventually.

So I just looked at my loan statement and I am paid ahead so my payment due is $200 and I always send $1000 every month so I guess I am getting closer just didn't realize it.
 
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How can a person avoid being tax on loan repayment money? I heard somewhere that if the hospital is non-profit there is a way to get around being taxed.
 
Rowdy Burns said:
How can a person avoid being tax on loan repayment money? I heard somewhere that if the hospital is non-profit there is a way to get around being taxed.
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You're thinking of Public Service Loan Forgiveness. That's a federal program that MIGHT start forgiving debt in 2017 for those who work non-profit. It has nothing to do with getting an employer payout.
 
Rowdy Burns said:
How can a person avoid being tax on loan repayment money? I heard somewhere that if the hospital is non-profit there is a way to get around being taxed.
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Yes. Talk to the hospital system you are negotiating with about having them do loan repayment. It shouldn't show up on your taxes if they do it right.
 
VA Hopeful Dr said:
Yes. Talk to the hospital system you are negotiating with about having them do loan repayment. It shouldn't show up on your taxes if they do it right.
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Are you sure about this? I believe the loan repayment benefits through the National Guard and VA are both considered taxable benefits (correct me here if I'm wrong--based on your username you may work at a VA and have benefited from their repayment).

I'm not sure if either agency is directly paying Uncle Sam or paying you. I could see a payment directly to the lender on your behalf possibly not being taxed, but I'm pretty sure that's what the National Guard does.
 
So, it sounds to me like all this negotiation about "loan repayment" is just a façade for asking for a higher salary.

The extra money is taxable, added to your paycheck, and there isn't accountability after you receive it. You can spend it on student loans, Ferrari loans, a trip to the Bahamas, or just stuff it in your bank account. You might not even have any student loans.
 
sazerac said:
So, it sounds to me like all this negotiation about "loan repayment" is just a façade for asking for a higher salary.
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First off, most physicians aren't "salaried" in the strict sense of the word. New physicians may be salaried for a short time (1-3 years) until they build up their practice, but after that they're likely going to be paid based on productivity.

Loan repayment is usually a set dollar amount paid over a certain number of years. It's not indefinite.
 
Blue Dog said:
First off, most physicians aren't "salaried" in the strict sense of the word. New physicians may be salaried for a short time (1-3 years) until they build up their practice, but after that they're likely going to be paid based on productivity.

Loan repayment is usually a set dollar amount paid over a certain number of years. It's not indefinite.
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Good point. So it is more akin to a negotiated bonus because it won't last forever.

What I am getting at (or at least trying to verify) is that this isn't any different than negotiating for an unrestricted hiring bonus. "Loan repayment" is just lipstick applied to temporary extra cash payments. The dollars themselves are fungible and might never go towards loans at all.
 
sazerac said:
Good point. So it is more akin to a negotiated bonus because it won't last forever.

What I am getting at (or at least trying to verify) is that this isn't any different than negotiating for an unrestricted hiring bonus. "Loan repayment" is just lipstick applied to temporary extra cash payments. The dollars themselves are fungible and might never go towards loans at all.
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My wife's contract, which has a loan repayment option, requires her to tell the hospital system who to pay it towards which they will then do. It never touches our hands. Not exactly fungible.
 
RangerBob said:
Are you sure about this? I believe the loan repayment benefits through the National Guard and VA are both considered taxable benefits (correct me here if I'm wrong--based on your username you may work at a VA and have benefited from their repayment).

I'm not sure if either agency is directly paying Uncle Sam or paying you. I could see a payment directly to the lender on your behalf possibly not being taxed, but I'm pretty sure that's what the National Guard does.
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http://www.finaid.org/loans/forgivenesstaxability.phtml
 
To bring this post back from the dead, what's the final answer on if the loan forgiveness from my future company (NOT PSLF) is taxable or not-taxable?
 
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