Hello all,
This is a great thread as it seems more and more DPMs are tracking towards the hospital model, but there is not as much complementary information out there for those entering this area to use to both gauge reasonable compensation due to all the variables (salary, wRVU, bonus, regionality of compensation, etc).
I am also potentially changing jobs to the hospital model. I wanted to post a salary construct question but also I had some questions as DPMs in the hospital system is new and they are still figuring out some of the compensation components if anyone can comment (or tell me to not worry).
- Salary is currently set at $240,000 for 5000 wRVU (was going to shoot for $250k for 5000 or $240k for 4800 maybe just to negotiate something), set salary for first 2 years and then adjusted (decreased) based on hitting the target with a 90% within target grace (so hitting at least 4500 wRVU will not cause a salary change). The bonus is $50/wRVU above the initial 5000 wRVU. I was told (waiting to get in writing) that if I bill and we are reimbursed on multiple procedures, I would get 100% of each of the covered procedures wRVU values towards my base/bonus.
- Other inclusions are $3000 CME, all societies (APMA, ASPS, ACFAS, state) and license (state, DEA, etc) fees are included and not part of CME costs; vacation/PTO for education factored in; 15-mile non-compete. Generally, the rest of the contract is fairly standard.
The practice was independent and then bought out by the hospital recently (~ 2 years ago), so there was some presence/patient volume to begin with from the solo practitioner in his decades of practicing. There are currently two other "new" DPMs with the group and they have been there for 1 and 2 years each with the 3rd (initial owner) doctor currently <50% and is slowly backing out over the next few years, the reason for selling to the hospital. The hospital seems committed to growing the service line, with two new office spaces (3 total) in their target demographic region, tons of internal referral, ED and UCs.
It seems overall like a fair deal, even as originally written. With the levels of wRVUs everyone who has responded here and in talking with other friends in hospital or RVU based setups, seems easily obtainable in a few years and a high probability of bonusing.
- Other questions include?
1.) Does the in-clinic X-ray technical RVU value go to you? (towards your goal?)
2.) How are "cash" items dealt with? Orthotics, Powersteps, etc?
3.) How is DME like boots, braces calculated with a wRVU value? - they were going to figure out a wRVU value based on a $/wRVU conversion.
(these three items in a private practice situation would tend to go towards your collections for a bonus, so how do they go towards a wRVU goal/bonus?)
Anything else to look for in a contract? What I have has been reviewed by a lawyer and seems fair. Plus this isn't my first time going through this and have looked at many contracts in helping past residents. Just trying to make the right decision for my family and me in looking at this change and want to make sure everything is set-up correctly in this initial contract, going forward.
Thanks in advance,
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As a disclaimer, I have been an SDN member for about 8-10 years but recently changed my username due to wanting to make it more anonymous as my last one could easily be traced back to me.