Fair market value for compensation contract

[notlucid]

I will appreciate if someone can answer the question regarding fair market value as it applies to salary of a hospitalist.
Is it some number like 75th or 90th percentile of the MGMA.
If you work extra shifts as a hospitalist, does it change that.
Thanks.

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[NotAProgDirector]

I'm not certain I understand your question.

Are you on an H visa?

 

[nlax30]

From my understanding FMV (Fair Market Value) analysis considers multiple aspects of a compensation, some factors which are specific to your geographic area and some percentile from a compensation survey such as MGMA is only one factor. So these surveys are somewhat useful I guess but much more goes into the equation.

 

[jdh71]

I will appreciate if someone can answer the question regarding fair market value as it applies to salary of a hospitalist.
Is it some number like 75th or 90th percentile of the MGMA.
If you work extra shifts as a hospitalist, does it change that.
Thanks.

FMV will like be considered 50%ile or perhaps 25%ile plus wrvu comp.

No one will consider a baseline salaray of 75-90a%ile to be FMV outside of hard to recruit markets.

 

[MdCompCare]

Feel free to DM me as I deal with these questions all day. As a brief answer, generally systems employing hospitalists will contract with a third party valuation company and legal team to create a compensation model. That compensation model will be calibrated to pay a certain total compensation range (say 50th% MGMA or a blend of survey data) for you total number of shifts (likely 180 or 182 per year). The consultants do sensitivity testing (ie if a doctor works 220 shifts what is the resulting pay versus the incremental effort of working those shifts). The whole model is then approved as being within FMV.

From a practical standpoint, the more you work the more you make and the whole spectrum of earnings is considered FMV because the model itself has been signed off on.

Happy to help further if you have nuanced questions.