Crafting a contract

[Langerin]

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I've lurked in this forum for a while and I appreciate all the good advice.

I'm looking at joining a solo-practice. He has a good payer mix, reputation, etc. He's never hired another doc before and I'm a relatively new grad, so neither of us has an idea of what a reasonable contract looks like.

He's reluctant to pony much of a base salary. I was thinking of a staggered percent of collections, once I have paid up my base. (made up numbers below)

after reaching base salary, I get
40% of collections up to 700K
50% collection 700K-1M
60% greater than that.

I don't know how overhead typically figures into this - are the percentages calculated after subtracting for overhead costs?

He said partner after 3 years, which seems long since he is not giving a good base and has no track record.

Any suggestions or resources would be much appreciated.

 

[Agast]

Standard contract in my group is base salary plus bonus that is 75% of your profit center (what’s leftover after all expenses met). Ortho group.

 

[DubVille]

I have a similar setup, and joined a PP like the one you describe.

I have a low base, but get 40% after 400k collections. So I end up getting nearly half of my income as bonus. I'm not the fastest, nor is my "partner." I only see about 18-21 a day and 15-20 procedures in office.

So you get to add DME into collections?

I signed a 2 year contract, will be renegotiating soon.

 

[Ducttape]

above all, do your research as to what is market value and have it reviewed by a lawyer.