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Dermatology Contract Negotiation New Grad

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Hey all! I'm a new grad working on an offer in dermatology in a very high cost of living area.

We have agreed on 90k as base and have worked out most of the details of the benefits, and are now are moving on to long term financial compensation.

The employer has posed these questions: 

What are your financial goals for the longer term (years 2-4), in terms of salary and overall compensation / benefits?  Please be specific and provide
figures, as well as the performance benchmarks that would impact your compensation.  A productivity bonus is a percentage of gross receipts 
(less cost of expensive consumables) resulting from your treatment of your own patients during your scheduled patient hours.  The percentage depends
upon how productive your time is, in terms of how many procedures you perform, the type of procedures, and how many patients you see per hour. 

I don't know much about performance benchmarks, collections, productivity bonuses, etc. I would really appreciate any advice on how to respond to this question!

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Respond by getting them to throw out the first numbers/benchmarks/etc.

As a new grad of COURSE you don't know anything about this.  You also don't know at this point how productive you'll be (or how productive they'll let you be).

Have they had a PA before?  Ask how they perform/average patients per day/hour, # of procedures.  If you throw out what you think (with obviously NO experience to pull on) you'll either low ball yourself or set yourself up with expectations too high and never reach your benchmarks.

Edited by MT2PA
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if you undershoot you will never dig out

if you overshoot you will not get hired


I tend to be honest in these situations admitting that you are a new grad and will require some mentoring initially, but that you would look to be "near the top of the income in 3-5 years"   it gives them notice that you are not going to be content to sit at a subpar wage, but that you know you need training    

you also need to talk to the current PA to see what the full potential is


As a Dem PA you should have a productivity clause and have a top of scale income up to about 200k (not now but in 5-10 years)

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Agree with above. As a new grad you are going to need some extra training/mentoring and not going to be bringing in as much revenue for the practice, so a lighter salary is understandable for the first few years. I would say in around 5 years experience in derm, you should be at or around 160k after bonuses/collections.

I am not in derm so idk much about bonus structures, but definitely try and get some info on earning potential from the other PA.

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