Hey guys regarding the MGMA data, is it different for hospital based practices? I am 2 years into a hospital based practice and currently undergoing contract extension negotiations with my employer. I brought up the point that since I am doing procedures in a hospital setting (higher facility fees for them) that my base should be higher as my bonus is wRVU based and not collections based (which I realize is appropriate for most hospital based practices). Their response was they can't consider my work/collections in the hospital as this violates Stark laws. They also said giving me a higher base and compensating me "higher than fair market value" is also potentially problematic for them if they are audited. I am not sure if they are trying to get out of paying me or if what they are saying has merit to it. I do not have much experience with contract negotiations but if anyone has any input it's much appreciated!
The hospital is absolutely trying to get out of paying you. Typically they want 75th percentile work for 25th percentile pay.
Generally, hospital administration has a poor understanding of how the Stark Law applies to employed physicians.
In general, they cannot pay you more than your collections, from what I understand.
The term fair market value will get thrown around a lot as well also. This phrase is poorly defined in my experience as it is not as simple as stating it is 50th percentile on one of the numerous salary surveys.
What can happen is administration hires am outside consultant to determine a compensation range. Administration will use this information and make you an offer, usually based on the lower end (you will never know what the range is since they will never divulge this).
There are a couple of ways to approach this (not exhaustive list)
1. Straight productivity model
WRVU x conversion factor = compensation
This is simple. Someone posted some mgma data which lists the median $/rvu
You should have detailed knowledge of your rvus for your 2 years.
2. Base + Productivity
Usually you will have to meet some rvu threshold in order for Productivity to kick in.
3. Only base with no productivity
I don't see this too often because administration is typically afraid one will have no incentive to work etc.
Then there can be various stipends (clinical site director, other made up title) they can use to pump up your cash compensation.
Regarding your negotiation, what final cash compensation will make you satisfied? That is the number you need to think about in order to negotiate with an end goal in sight.