Private practice partnership track associate LOI

[munchkinsgato]

I just received a LOI for a private practice partnership track position that seems like an ideal fit professionally and personally. I plan to have a lawyer review everything but just wanted to get some other feedback as I'm not as familiar with these sorts of contracts as with academic contracts. The terms: associate compensation $280k + CME + malpractice, licensing, etc + $10k relocation bonus, 2 years to shareholder, $8k buy-in, shareholder compensation incremental over 3 years to full partner share at 4 years.

I currently work essentially in what has revealed itself to be a pod lab so the pay is great but the nonsense is not. This will certainly be a pay cut for 2 years but the partner salary is similar to my current of $300k + productivity bonus.

Just curious, if this is a reasonable structure for partnership track? The terms look great to me. The group seems very fair. They have a very high retention rate and all of the partners plan to stay and retire. I'm debating asking for $305k for the 2 years on partnership track so be essentially the same as my current base salary. I don't want to piss of future partners but also feel strange just signing a deal without requesting anything.

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[caffeinegirl]

There are multiple factors in a partner practice that you have to assess. What is the vacation and on-call policy? What is the payor mix for the group (ie. how likely are they to be taken over by a larger lab, what is the market competition like). What are the termination clauses? An employment lawyer is the best to assess the latter. Listen very carefully to what your lawyer says. They may have a partnership track, but that can change due to external factors before you make full partner.

"I don't want to piss of future partners but also feel strange just signing a deal without requesting anything."
This is the wrong attitude here. You should be asking for what you are worth. Period.

 

[Zarniwoop]

Pay cut vs put up with nonsense?
That depends on what the nonsense is, but there is a high chance you're trading nonsense for a pay cut plus new nonsense.
Unless the nonsense falls outside of what 95% of other pathologists would tolerate, I'd stay put.

 

[ScubaV]

There are multiple factors in a partner practice that you have to assess. What is the vacation and on-call policy? What is the payor mix for the group (ie. how likely are they to be taken over by a larger lab, what is the market competition like). What are the termination clauses? An employment lawyer is the best to assess the latter. Listen very carefully to what your lawyer says. They may have a partnership track, but that can change due to external factors before you make full partner.

"I don't want to piss of future partners but also feel strange just signing a deal without requesting anything."
This is the wrong attitude here. You should be asking for what you are worth. Period.

Agreed. Make sure you consider all other factors besides just pay. I've never worked private practice, but from the numbers I've heard thrown around a partner pay of ~$300k plus bonuses seems pretty low. That makes me suspect it is a smaller/low volume practice that is ripe for being bought out or losing contracts if the hospitals/docs supplying the specimens are absorbed into a larger entity.

 

[mike-sheree]

I don’t like the “graduality” of the partnership/buy-in time line. It should be immediate with COMPLETE proportional equity. Pay your money and you are a full partner in all respects.

 

[caffeinegirl]

OP: I would carefully consider these prior responses on this thread. Look into the "nonsense" you are dealing with now, and have a realistic view of the "nonsense" you'll be dealing with in the new practice. Remember that the grass always looks greener, and that people are on their best behavior during the interview process. In a pod lab, your specimen/revenue stream is guaranteed compared to a private practice. A private practice can have more politics, personalities and can also give you less independence when it comes to scheduling and income.

 

[MetroPath]

I don’t like the “graduality” of the partnership/buy-in time line. It should be immediate with COMPLETE proportional equity. Pay your money and you are a full partner in all respects.

I interviewed at a place starting 180,000 with increases in salary every year and full shareholder/partnership 400-600 after 6-7 years. If you don’t get kicked out beforehand.

On a side note I met a few people burned out working long hours with low pay recently. Like working until 1 am.

 

[Dave CX]

Can't imagine a pod lab having MORE nonsense than a hospital lab. The hospital job will be more interesting and challenging, but if you have a low tolerance for egos, drama, disruptions and personalities, you will not like it. The offer seems pretty solid imo.

 

[Napoleon1801]

I just received a LOI for a private practice partnership track position that seems like an ideal fit professionally and personally. I plan to have a lawyer review everything but just wanted to get some other feedback as I'm not as familiar with these sorts of contracts as with academic contracts. The terms: associate compensation $280k + CME + malpractice, licensing, etc + $10k relocation bonus, 2 years to shareholder, $8k buy-in, shareholder compensation incremental over 3 years to full partner share at 4 years.

I currently work essentially in what has revealed itself to be a pod lab so the pay is great but the nonsense is not. This will certainly be a pay cut for 2 years but the partner salary is similar to my current of $300k + productivity bonus.

Just curious, if this is a reasonable structure for partnership track? The terms look great to me. The group seems very fair. They have a very high retention rate and all of the partners plan to stay and retire. I'm debating asking for $305k for the 2 years on partnership track so be essentially the same as my current base salary. I don't want to piss of future partners but also feel strange just signing a deal without requesting anything.

I'm in a group in the midwest with a similar partnership track plan which requires a 3 year buy-in. It's nice to have those details in writing if everything works out. There's something to be said for joining a private group if it's run well. I feel that it's much more gratifying to have a voice in how the company is managed as opposed to being a worker bee for a giant hospital conglomerate.