What Do You Think of This Private Practice Job Offer (Production, Split)

[AD04]

employer: multi-state for-profit entity backed by private equity gobbling up outpatient practices

location: well-to-do area (good for eventual cash-practice)

offer:
- w2 with benefits
- based on billing (1-year guarantee before switching to 100% production, flexible schedule)
- collection rate: 90% - 99%
- 60% (physician) / 40% (practice) -- may not be negotiable, but I will try anyways
- ancillary staff will do prior authorizations and other tasks (physician focused on production)
- no weekend call (rounding duties)

con:
- take all insurance (including Medicare and Medicaid), but may be at favorable rate due to size and negotiating power
- no financial data of the practice and no comparables in the state (I will be among the pioneers)
~ for reference, in a neighboring state, after the ramp-up year, physician was making "mid-300s seeing 18 - 20 pts / day"
- unknown no-show rate (didn't ask)
- unknown no-show policy (didn't ask)

What do you think? Is less favorable split (60/40) balanced out by:
- being W2 with benefits
- paid based on billing (not collection)
- with favorable rates through a multi-state entity

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[michaelrack]

you could get killed if there is a lot of medicaid. 100% production is unusual for a w2 position; if you are going to do this I would base it on rvu's rather than billing (which would cancel out the effect of medicaid/poor insurers)

 

[AD04]

That is definitely a concern. If I take it, I'm negotiating Medicaid out of my contract. It is a wealthy area and there will be no shortage of patients with better insurance.

 

[TexasPhysician]

Absolutely not for Medicaid insured practice.