Physician Compensation Models

As you are looking at different job opportunities, it is important to understand the compensation model that the organization utilizes. This will determine how you negotiate your contract, and also give you a better idea of the money you can potentially make.

Fixed Salary

The fixed salary, 100% salary, or straight salary is exactly what it sounds like. This is a compensation model where physicians are paid a set salary no matter the quantity or quality of productivity.

Salary Plus Incentive

The salary plus incentive or salary plus bonus model allows physicians to make a set base salary, but also gives a chance to earn a bonus. The bonus can be based off of different criteria (depending on the organization) like patient satisfaction, productivity, or personal performance.

Pay for Performance

Pay for performance is a model that is set up so pay reflects performance based on standard criteria. This model is used to make sure that physicians are meeting performance criteria set by the organization.

Pure Performance

The pure performance, value-based compensation, or pure productivity model is where a physician is paid on a scale based on the procedures performed or the nature of the patient visit. Physicians can earn relative value units based on the activity performed.

Equal Share

The equal share model divides the organization's revenue equally among the physicians in the group once costs are taken care of.

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