contract not mentioning actual RVU #s and other details

[resident_1]

Received a contract for a first job. Interview went well, it is outpatient with no call. But when I got the contract I am less optimistic about it.

Contract is for 3 years, with a 5mile non-compete, the first 24months has guaranteed salary ($215k). The issue is for what happens after.
This practice is just switching to rvu model (production based), and in the contract they are not giving me RVU#s. I inquired about this and they said since I'm guaranteed salary for 2yrs it doesn't apply to me. But I would still like to know at least what RVU#s are this year.

The compensation model is as follows:
There is Base Compensation (Production Model): worked RVUs up to median threshold x 70% Median rate (again doesn't mention #s for threshold or median rate).
Then there is Value Compensation (given "perfect score on all measures", but doesn't give me exactly what these things are): worked RVUs up to Median threshold x 20% Median Rate.
--Value compensation is paid out semi-annually.

Then there is Productivity Payments:
--If met Median threshold, worked RVUs up to Median threshold x10% Median rate
--If Median to 65th percentile: worked RVUs between Median and 65th x20% Median rate
--If >65th percentile; worked RVUs above 65th x90% Median rate

Again no #s for any of above (their explanation is that I have guaranteed salary)

The other aspect that bothers me is that once guaranteed salary ends I get paid 80%  of my Base compensation on bi-weekly basis (based on past 12months of RVUs), and the other 20% is paid out semi-annually.  They didn't actually include in the contract about how 20% gets paid (I had to ask them).

Again this is my first contract for an outpatient job, and I'm not sure whether this structure is common.
They also were not willing to negotiate extra relocation funds because this is a cross-country move and I will go about $10k in debt to move family out there. I asked them for extra $7k and they said no (which I thought was unusual since expenses for cross-country move are large, and they were recruiting me for what I think is long-term. Why not invest a littlebit into a physician who will be contributing to the system?

 

[Zaphod]

resident_1 wrote:

Received a contract for a first job. Interview went well, it is outpatient with no call. But when I got the contract I am less optimistic about it.

Contract is for 3 years, with a 5mile non-compete, the first 24months has guaranteed salary ($215k). The issue is for what happens after.
This practice is just switching to rvu model (production based), and in the contract they are not giving me RVU#s. I inquired about this and they said since I’m guaranteed salary for 2yrs it doesn’t apply to me. But I would still like to know at least what RVU#s are this year.

The compensation model is as follows:
There is Base Compensation (Production Model): worked RVUs up to median threshold x 70% Median rate (again doesn’t mention #s for threshold or median rate).
Then there is Value Compensation (given “perfect score on all measures”, but doesn’t give me exactly what these things are): worked RVUs up to Median threshold x 20% Median Rate.
–Value compensation is paid out semi-annually.

Then there is Productivity Payments:
–If met Median threshold, worked RVUs up to Median threshold x10% Median rate
–If Median to 65th percentile: worked RVUs between Median and 65th x20% Median rate
–If >65th percentile; worked RVUs above 65th x90% Median rate

Again no #s for any of above (their explanation is that I have guaranteed salary)

The other aspect that bothers me is that once guaranteed salary ends I get paid 80%  of my Base compensation on bi-weekly basis (based on past 12months of RVUs), and the other 20% is paid out semi-annually.  They didn’t actually include in the contract about how 20% gets paid (I had to ask them).

Again this is my first contract for an outpatient job, and I’m not sure whether this structure is common.
They also were not willing to negotiate extra relocation funds because this is a cross-country move and I will go about $10k in debt to move family out there. I asked them for extra $7k and they said no (which I thought was unusual since expenses for cross-country move are large, and they were recruiting me for what I think is long-term. Why not invest a littlebit into a physician who will be contributing to the system?

 

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If so many things are tied to your RVU #s, regardless of whether or not your guaranteed or not, it matters and needs to be specified. Anyways, not to point out the obvious but the guarantee is for 2 years and the contract 3, this makes sense to them to be opaque? Usually, your guarantee is tied to some base expected level of production anyway, I mean that just makes sense. It would make even more sense that you are a bit over paid in the early period and under after established.

They might not have good numbers since they are just switching, but they had to establish current pay somehow. You will never see the quality bonus with that wording. They dont even mention the scale or measuring system. I have something similar in my contract and turned out it was survey type given by and scored by the practice...pretty sure I'll never see that, disregarded.

I hate vagueness and the "oh its fine cuz" in doctor contracts. All of these things have known ranges of numbers and should be very explicit, as this is where confrontation arises from, implied or misrepresented terms that never materialize.

As for the moving expenses, if you get anything thats great. I did a cross country move for fellowship and my job, which both hurt very badly as they were not reimbursed at all.

[Quan]

I work in a group where we are compensated by RVUs.  The pay structure of getting 80% salaried out yearly with 20% paid out semiannually is the same as what my company does for us also.

I think it's weird that they have no idea what RVU they are expecting from their providers.  I think it's a valid question to ask.  They should have a number in mind.  I think you can figure out what the average yearly RVU per specialty and use that to figure out what they would expect.

Otherwise, my question when I signed with my company was what if my RVU production outpaced what I was being compensated from my salary guarantee.  You should make sure that salary guarantee is a floor and not a ceiling for the first 2 years.
Grats on the job.