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Renegotiation of Derm contract


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Hey guys,

 

I wanted to get some opinions on my current situation.

 

I have been a Derm Pa for about 2 years now with the same company. My salary is $75k and collect 25% over $85k every quarter. We added another provider to our practice and now I'm bonusing significantly less.

 

I was recently told that a good contract would be to set it up as a percentage of collections, meaning, if my base salary is $75,000, then $75,000 divided by 25% = $300,000 (what I need to make per year to be eligible for bonus). So essentially, I'd be buying back my salary every quarter plus making bonus.. if I understand that correctly.

 

Does that sound like a good set up? For instance last year I made about $135k pretax.

 

Thanks !

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sorry but that sounds like crap

 

Doc's typically take home about 52% of revenue

 

PAs in the past have been about 10% less - low 40%

 

25% is crap

 

I would only go productivity at > 40%  period (then all your bennies on top of that ie 5 weeks vacation, 12 holidays, 5 days CME, $2500+ CME......) you are worth A LOT now and they have to pay you - or you should move to different practice that respects and values your input

 

 

If you stay you are only a profit center supporting the doc's days off, fancy cars, and quality of life......  we are not servants....

 

at your 135k mark last year would would have made the doc some 200+ k (figuring on a 50% overhead)

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Typically

 

If a doc has made a lot of $$ from you, he/she will not want to increase your salary as depending on you to support their living...

 

So give it honest effort to negotiation, but be prepared to move on...... to a job that respects the work you do and doesn't want you to pay for their lifestyle....

 

(I left a job making 84k when I was grossing just under 300k for practice - after they gave me a $500 holiday bonus - WTH??? We are not a cost center -we are a revenue center - and we deserve better compensation!! The only way we will get that is if we all demand it)

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So what you're suggesting is I should be getting paid 40% of my billed collections to the company? 40% of 500k = 200k. Is that normal?

 

Thanks for ur input!

their is good studies out there showing what PA and MD take home from collections

 

yes exactly that

 

and for experienced Derm PA that is not unreasonable - the practice will still make A LOT of money off you - just not as much

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