jenn02nyy Posted February 28, 2011 Share Posted February 28, 2011 I am negotiating a contract for a new job and was hoping someone could tell me about profit sharing. More specifically what % is normal to receive and is it based on your personal profit or the groups. I have always worked for a hospital where this didn't exist. TIA! Link to comment Share on other sites More sharing options...
rcdavis Posted March 2, 2011 Share Posted March 2, 2011 Profit sharing implies that you will be able to "share" whatever the corporation declares as profits. Unusual for PA s. But, if offered, the % is agreed upon at time of contract, and is usually anything from full percentage ( eg 1/n-th percent of the whole with n = the total number of full time partners / employees that are eligible in the sharing, or a percetange of that percentage if not a full partner or employee eligible for fill percentage. Another way is for you to get a bonus based on the profits generated. There are some dangers... Unless you have access to the real books,what the actual profit is , is usually difficult to truly discern.. If "senior" management claims costs atht are higher than true, or collections less than true,the "profit" will be decreased so you really are never sure if the pot has been calculated correctly. There is also a partial profit method... When the employee is given a percentage of his individual profit, as defined by the corporate collections for him/her minus the cost of his employment ( MAs, equipment, billing fees, insurance, etc, plus salary)... This method rewards the big earners and allows them to avoid having their profit pooled and divided with the poor earners.. This is usually the case when gastroenterologists and pulmonalgists ( high profit) are partnered up with family docs or general interests ( low profit). Regardless, any bite at the apple is above and beyond the normal, and is a great benefit.. Take it. Negotiate if given a chance for an equal percentage of what the docs get at best, or, if you are a real producer, as high a percentage of your individual profit as possible.. With open book and agreement on what the costs will be in calculating that profit. Good luck. Davis Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.