I was wondering if I could get some opinions on my contract negotiation. I’m a hand surgeon in a multi-specialty group, currently in my 3rd year with the practice. I’m still on my starting salary and am working on adding incentives based on total collections. From what I’ve read, and speaking with friends in the field, it seems like most ortho practices usually have about a 50% overhead and incentives kick in when revenue reaches 2x salary. Based on the numbers my company has given me, they claim our overhead is closer to 70%, so I’d need to bring in more than three times my base before any incentives would kick in. One good thing about the practice is that revenue I generate at the company’s ASC goes toward my collections, but the ASC expenses attributed to me go against my overhead.
I feel that part of the problem is the company doesn’t have an accurate way of calculating the overhead of each doctor and bases it on the revenue generated. And since I’m not an owner, I don’t have a lot of control over the expenses they are putting under my name.
Does anyone have thoughts on a reasonable overhead for this type of practice? Has anyone been able to successfully negotiate down the overhead, citing industry standard?
Thanks
I feel that part of the problem is the company doesn’t have an accurate way of calculating the overhead of each doctor and bases it on the revenue generated. And since I’m not an owner, I don’t have a lot of control over the expenses they are putting under my name.
Does anyone have thoughts on a reasonable overhead for this type of practice? Has anyone been able to successfully negotiate down the overhead, citing industry standard?
Thanks
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