Invasive Cardiology contract details

[RBBB]

Hi All,

I'm currently interviewing for an Invasive Cardiology job in the outskirts of a major metro in the Mid-west. Its a solo Cardiologist with one internist practice. Its a large practice with over 7500 pts. From the get go, I will be pretty busy (something which I am okay with). The income potential is pretty significant over (450-500K per annum).

He is guaranteeing income for first 6 months, and then I eat what I kill. Partnership from the get go. May sound like he is scamming me, but he is a very well reputed dude. Nearly 40 TTEs, 25-30nucs, 5-10 diag caths, 20-25 office visits/day and 7-10 consults (new + old) daily. Has two offices of his own. Calls are shared with 2 other caridologists. will be 1:4 when I join. I'm pretty positive I'll get slammed from day#1 (and I'm actually excited by those prospects). Hard core private practice! Not much vacation in the first year (but thats something I'm negotiating right now; no point making a tons of money if you don't have the time to spend it)

The reimbursement model is as follows:
FOR INITIAL COLLECTION OF 0-$100,000 EMPLOYEE WILL RECEIVE 50% OF COLLECTIONS.
NEXT $100,001 - $200,000 EMPLOYEE WILL RECEIVE 55% OF COLLECTIONS.
NEXT $200,001 - $300,000 EMPLOYEE WILL RECEIVE 60% OF COLLECTIONS.
NEXT $300,001 - $400,000 EMPLOYEE WILL RECEIVE 65% OF COLLECTIONS.
NEXT $400,001 - $500,001 EMPLOYEE WILL RECEIVE 65% OF COLLECTIONS.
WHEN COLLECTIONS EXCEED $500,000 EMPLOYEE WILL RECEIVE 65% OF COLLECTIONS.

Since this is my very first job offer, I'm not sure if this is sort of the 'norm' out there. What are the other practice models out there? Is there anything I can negotiate on this offer? One thing I notice is that beyond 300K, its 65% flat (even if I gross over 500K!). That seems weird.

I would really appreciate your thoughts.

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[RBBB]

"Nearly 40-50 TTEs, 25-30nucs, 5-10 diag caths, 20-25 office visits/day and 7-10 consults (new + old) daily, a bunch of TEEs too" thats the weekly work.

The other plus p0int it: He sees consults in 3 hospitals. He reads whatever tests he orders on his consults (TTEs, TEEs, nucs, diag caths, holters, etc)

 

[RBBB]

Just need to clarify:

That's the average work load per week which will be split between the two of us.

 

[joejabjab]

Thanks for sharing your experience. Interesting to read these things. I'm in the process of interviewing. Have you signed yet? Couple thoughts -

1) Most places I've seen/heard are mid sized groups. Typically it's base salary plus bonus based on "production", not "collection". Not all your work "collects", since some insurance agencies may only pay a portion of what you bill and some patient's only pay parts of their deductible (or take their time doing it). "Production" based models is pushes a more even-keeled reimbursement model, but you know what you'll get.
2) Where does all the other money go beyond the 65%? If you're an even partner, then you'd get that back after overhead. If you're not an even partner, then the original doc gets it all after overhead, likely.