Contract Job: Is There a Catch?

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edieb

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I am a prescribing clinical psychologist (PhD, MP) in New Mexico who runs my own PP. I was recently contacted by a recruiter who wished to utilize my services 40 hours/week. The contract pays extremely well, around $153/hour. There are no benefits except 10 paid days off. However, with that kind of money I can easily continue to pay for my own health benefits which are $190 a month. I have never done any contract work so I am wondering if there are any other catches I need to be cognizant of???

Thanks

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I am a prescribing clinical psychologist (PhD, MP) in New Mexico who runs my own PP. I was recently contacted by a recruiter who wished to utilize my services 40 hours/week. The contract pays extremely well, around $153/hour. There are no benefits except 10 paid days off. However, with that kind of money I can easily continue to pay for my own health benefits which are $190 a month. I have never done any contract work so I am wondering if there are any other catches I need to be cognizant of???

Thanks

How the hell do you have an health insurance premium that low?
 
I am a prescribing clinical psychologist (PhD, MP) in New Mexico who runs my own PP. I was recently contacted by a recruiter who wished to utilize my services 40 hours/week. The contract pays extremely well, around $153/hour. There are no benefits except 10 paid days off. However, with that kind of money I can easily continue to pay for my own health benefits which are $190 a month. I have never done any contract work so I am wondering if there are any other catches I need to be cognizant of???

Thanks

Pretty awesome salary and similar to what psychiatrists are making per hour. Can they send you the contract? I would read it carefully and run it by a colleague or lawyer. I would also google the company name and see what you can find out about them.

It's tempting to move to New Mexico and do the MP program!

Yeah, I'm also wondering about the health insurance. I paid the same per month while employed as an intern!
 
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typos about the health insurance, it is a tad higher but still the amount of the contract negates the cost of buying my own health insurance
 
Pretty awesome salary and similar to what psychiatrists are making per hour. Can they send you the contract? I would read it carefully and run it by a colleague or lawyer. I would also google the company name and see what you can find out about them.

It's tempting to move to New Mexico and do the MP program!

Yeah, I'm also wondering about the health insurance. I paid the same per month while employed as an intern!

Yes, I am excited. I need to look at the contract but I feel confident because it is a very well known med recruiting company. The prescribing has worked out very well for myself -- I have almost paid off my student loans in less than a year and should finish them off in the next month or so. I figure if I live frugally this year, I can make some substantial investments and have passive income streams coming in to augment my income
 
How many pts are they expecting you to see? What is the population? Contract work can be worth it, but it can often mean practicing less than diligent pt care in the name of numbers and risking your license.
 
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How many pts are yet expecting you to see? What is the population? Contract work can be worth it, but it can often mean practicing less than diligent pt care in the name of numbers and risking your license.

And, you have to live in New Mexico...

If there is one thing Breaking Bad has taught us...
 
Definitely read the contract and discuss workload (how many intakes v refills), population(s) seen, etc. I don't plan on prescribing, but that is darn good money. I'm going to take the PEPP this summer/fall just in case.
 
Definitely read the contract and discuss workload (how many intakes v refills), population(s) seen, etc. I don't plan on prescribing, but that is darn good money. I'm going to take the PEPP this summer/fall just in case.


Just got off the phone: 1 therapy patient a day, 2 assessment a day (60 min each) and the rest of the day is 3-4 patients an hour. I have to provide my own malpractice but that isn't a big deal because it is only $100 or so higher than a standard psychology malpractice + no retirement, health benefits. I do receive 10 paid days off a year. very tempting
 
How many patients do you currently see a day? Based on those numbers it would come out to about 22 pts in an 8 hour day. Is that a level you feel comfortable with for an extended time, given you will likely have to write two intake reports a day. Any sick leave? Do you plan to have a back up if said contract goes under?
 
How the hell do you have an health insurance premium that low?

My boyfriend has a "disastrous" plan with a high deductible. It started as low as $30 a month and is now around $50 a month.
 
Definitely read the contract and discuss workload (how many intakes v refills), population(s) seen, etc. I don't plan on prescribing, but that is darn good money. I'm going to take the PEPP this summer/fall just in case.

Anyone know about pass rates for PEP?
 
Anyone know about pass rates for PEP?

From the APA brochure about the PEP:

3. Establishing the Recommended Passing Score
The Recommended Passing Score was determined using a
criterion-referenced methodology referred to as a modified
Angoff approach to standard setting. This methodology
permits candidates to compete against the standard, rather
than each other. There is no pre-determined failure rate, as
there is when using a norm-referenced methodology.
Using the modified Angoff approach, items were evaluated
based on difficulty for the “just good enough” practitioner,
as well as importance for safe and effective practice.
Difficulty/importance ratings were then averaged across all
items to set the passing score. The Recommended Passing
Score, thus, represents the minimum level of knowledge that
must be demonstrated by the psychologist. An examinee’s
score on the examination is simply the number of items
answered correctly represented as a percentage. All items
receive identical weight. “Passing” the examination requires
a score at or above the “Recommended Passing Score.” The
recommended passing score is a score that the APA College
of Professional Psychology recommends for use by state and
provincial psychology licensing authorities in awarding

prescriptive authority. In order to ensure exam security,
there is no provision for failing or passing candidates to
review their examination. However, comments about the
examination may be addressed directly to the APA College
of Professional Psychology.

So....yeah.
 
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From the APA brochure about the PEP:



So....yeah.

You probably won't be able to take the PEP that quickly....my study schedule was 12 months, 3 hours a day and I barely passed. That in addition to all the coursework. It was hell, especially because I stated right after getting my psychologist license, but it was worth it Overall, the fail rate for first time test takers is 75 percent so you'd better get started If you PM me backchannel, I can share some study materials with you
 
You probably won't be able to take the PEP that quickly....my study schedule was 12 months, 3 hours a day and I barely passed. That in addition to all the coursework. It was hell, especially because I stated right after getting my psychologist license, but it was worth it Overall, the fail rate for first time test takers is 75 percent so you'd better get started If you PM me backchannel, I can share some study materials with you

Ugh. I'm in the middle of doing my ABPP stuff...picking out case studies, etc. I don't think I'd be able to add that amount of studying without being miserable. Golf season is finally starting, so I've been looking forward to getting out with some consistency. #FirstWorldProblems. I've had the luxury of being mentored by some top-notch psychopharmacologists (and I'm currently shadowing one of them 5-10hr/wk to get back in the swing of things since I took my classes a few years ago).
 
Just got off the phone: 1 therapy patient a day, 2 assessment a day (60 min each) and the rest of the day is 3-4 patients an hour. I have to provide my own malpractice but that isn't a big deal because it is only $100 or so higher than a standard psychology malpractice + no retirement, health benefits. I do receive 10 paid days off a year. very tempting

How complex are these pts? Adjusting depression meds on an outpt that is functioning is very different from attempting to see 22 severe schizophrenics per day.
 
My boyfriend has a "disastrous" plan with a high deductible. It started as low as $30 a month and is now around $50 a month.

Do you mean a catastrophic plan? Those are plans which are helpful if (heaven forbid) you are in a serious car accident and need to be hospitalized for a few weeks. Routine medical care isn't really covered. They are a good choice for short term coverage (like if you have a 2 month gap between jobs) but not so great for anything more long term. The good thing is that because they essentially cover very little, you can get one regardless of preexisting conditions.

Dr. E
 
Do you mean a catastrophic plan? Those are plans which are helpful if (heaven forbid) you are in a serious car accident and need to be hospitalized for a few weeks. Routine medical care isn't really covered. They are a good choice for short term coverage (like if you have a 2 month gap between jobs) but not so great for anything more long term. The good thing is that because they essentially cover very little, you can get one regardless of preexisting conditions.

Dr. E

I found a plan like that at a comparable price several years ago. It gave me something like 4 office visits per year. It was just a stopgap though before 8 jumped on my spouse's plan.
 
How many of those 40 hours do you expect to be billable? It sounds like it could be a pretty good deal--you definitely wouldn't have to live in a shack in the woods or anything--but I'd be careful not to underestimate the value of benefits in terms of stability and future return and also how much it might cost you to replace those benefits. Also, be very careful when buying your own insurance of any kind--I'd consult an expert to read over everything before signing,
 
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Do you mean a catastrophic plan? Those are plans which are helpful if (heaven forbid) you are in a serious car accident and need to be hospitalized for a few weeks. Routine medical care isn't really covered. They are a good choice for short term coverage (like if you have a 2 month gap between jobs) but not so great for anything more long term. The good thing is that because they essentially cover very little, you can get one regardless of preexisting conditions.

Dr. E

Yes! I realized a few minutes after I posted this that it is a catastrophic plan not disastrous. He is into natural remedies so he doesn't need routine medical care, though I do think that a check-up here and there might be helpful. I know my regular check-ups are worthless, though....the specialty doctors are what would actually be helpful.
 
I am a prescribing clinical psychologist (PhD, MP) in New Mexico who runs my own PP. I was recently contacted by a recruiter who wished to utilize my services 40 hours/week. The contract pays extremely well, around $153/hour. There are no benefits except 10 paid days off. However, with that kind of money I can easily continue to pay for my own health benefits which are $190 a month. I have never done any contract work so I am wondering if there are any other catches I need to be cognizant of???

Thanks


Yes. The catch with contracting work is that you pay the other half of the taxes (Social Security tax, etc) that your employer (in a salaried job) normally pays. So $153/hour is going to be somewhat less after taxes than $153/hour if you were on a payroll salary. Still sounds nice though, depending on your caseload.
 
Yes. The catch with contracting work is that you pay the other half of the taxes (Social Security tax, etc) that your employer (in a salaried job) normally pays. So $153/hour is going to be somewhat less after taxes than $153/hour if you were on a payroll salary. Still sounds nice though, depending on your caseload.

This, times 100. I have friends who have worked as contractors (research techs, university setting), and my husband has worked as a contractor in an unrelated field. My understanding from all of them is that you need to be really careful to set aside money (30-40% of each paycheck, depending on your income) throughout the year so that you're not totally screwed when tax time rolls around.
 
Relatedly, I believe you also qualify for various potential tax breaks (at least to some extent) when you're self-employed. I'd definitely consult a tax professional to look into those, though, and would plan on saving receipts from pretty much everything I did for the first year until I had a better idea of what's useful and what's not.
 
Yeah, and kiss the 1040ez tax form goodbye. It would be a good idea to hire an accountant, cause the tax process gets much more complicated. I did contracting as a BSC for a little while after I earned my MS. The hourly rate was great for an unlicensed clinician, like $40/hour, but after the extra taxes it wasn't worth it for me.
 
Although if I am understanding the OP right, she is already in independent PP, so she already is dealing with a lot of the pitfalls mentioned here. Her question is largely how is being a contractor different from running my own PP, right?

In that case, the one thing I would add is to get a sense of the person you are contracting with. In our group PP where we are all independent contractors, it is a common complaint that we are treated like contractors when that is convenient (e.g., no benefits etc) but employees when that is convenient (e.g. being on call, but uncompensated for it).

Good luck,
Dr. E
 
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