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PAhopeful01

Contract Renegotiation time - greedy?

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Hey All,

I'd like your input on my current terms and renegotiation suggestions please. 

Currently, my salary is 95k/year with productivity bonus of 27.5% over $83k/qtr. 

I have 4 years experience as a Derm PA. I get 30 days pto, 2k for CMEs and have a 401k, Insurance plan through company

What would you guys suggest as the renegotiation? I've heard percent collections of 30-40% is market rate 
 

Thanks for all your input!

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6 minutes ago, SoCal_PA said:

What has been your average productivity bonus? Seems like that is the deciding factor 

I brought in around 700k last year thus my bonus last year was around 100k

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I am not in derm but if you are seeing the low end of productivity bonus around 30%, then I would shoot for that. With the numbers you gave, that would give you an additional $10k which is a fair raise amount, I think 

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Not bad. 

195k/yr 

 

 

reasonable pto 

 

what about insurance and other bennies?  Expense account?  Laptop?  

 

i would go for more CME ie 5000

 

typically pager 35% if Collections   Doc’s get a little over 50%

 

the challenge is not pricing yourself right of a job 

 

how many days a week do you work??

 

 

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1 hour ago, SoCal_PA said:

I am not in derm but if you are seeing the low end of productivity bonus around 30%, then I would shoot for that. With the numbers you gave, that would give you an additional $10k which is a fair raise amount, I think 

That’s what I was thinking as well. And 30% is at market rate I’ve been told. Thanks!

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1 hour ago, ventana said:

Not bad. 

195k/yr 

 

 

reasonable pto 

 

what about insurance and other bennies?  Expense account?  Laptop?  

 

i would go for more CME ie 5000

 

typically pager 35% if Collections   Doc’s get a little over 50%

 

the challenge is not pricing yourself right of a job 

 

how many days a week do you work??

 

 

Yes 401k and good insurance as well. No expense acct. although I can incorporate stuff into my cme allowance. I work FT 4-5days a week

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6 hours ago, PAhopeful01 said:

That’s what I was thinking as well. And 30% is at market rate I’ve been told. Thanks!

I don't ever recommend trying to negotiate with your minimum number to start with. Given what you're bringing in, you're valuable enough to request a larger percentage.

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8 hours ago, OuchMyToeSis said:

I don't ever recommend trying to negotiate with your minimum number to start with. Given what you're bringing in, you're valuable enough to request a larger percentage.

Makes sense. I’ve done some calculations and the goal is to always assure I make bonus by keeping my threshold at an achievable amount over the draw. I’m more interested in how pas have their comp structured I think

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Stress the bonus means both you and the employeer makes more money. 

 

A derm doc would likely be in the 400k range 

 

go for salary preservation and work one less day a week.  

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4 minutes ago, ventana said:

Stress the bonus means both you and the employeer makes more money. 

 

A derm doc would likely be in the 400k range 

 

go for salary preservation and work one less day a week.  

Good point. My base salary is low but I’m ok with that since I make such a good bonus. I agree, bonus incentivizes employee and practice. Perhaps that gives me a better negotiating power given it’s not a salary.

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On 4/8/2019 at 2:54 PM, ventana said:

Not bad. 

195k/yr 

 

 

reasonable pto 

 

what about insurance and other bennies?  Expense account?  Laptop?  

 

i would go for more CME ie 5000

 

typically pager 35% if Collections   Doc’s get a little over 50%

 

the challenge is not pricing yourself right of a job 

 

how many days a week do you work??

 

 

Hello again,

Time has come for reneg. again and I could use your help! Lol. Im going to shoot for 32% of collections if I keep my yearly salary at 95000k; otherwise perhaps ask for 31% with a salary of 150000k; both would be over the draw. Given im seeing around 500-600 pts a month, does that seem appropriate? 

Thanks or ur help

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On 4/8/2019 at 9:59 PM, OuchMyToeSis said:

I don't ever recommend trying to negotiate with your minimum number to start with. Given what you're bringing in, you're valuable enough to request a larger percentage.

I agree, I think im going to request 32% and hope to land at 30-31. I bring in enough collections and see a huge # of pts compared to the docs where it shouldn't be a huge ask... Ive been having trouble structuring my offer but we shall see

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52 minutes ago, PAhopeful01 said:

So they increased my base to 180k with 30% over 600k a year....

So if you do another $700k this year, you'll end up somewhere around $210k at 30% over $600k -- not too shabby. Presumably, you'll also get an increased contribution to your 401k given your increase in base, which is also nice.

Do you think you'll be just as or more productive this year?

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6 minutes ago, Sed said:

So if you do another $700k this year, you'll end up somewhere around $210k at 30% over $600k -- not too shabby. Presumably, you'll also get an increased contribution to your 401k given your increase in base, which is also nice.

Do you think you'll be just as or more productive this year?

Yes I’m staying on track for a net coll. North of 700. I question if I should play it safe with a lower base but still keep the draw at 30%. Ie.) $150k base and 30% over 500k net coll. yearly.. 

Edited by PAhopeful01

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13 hours ago, PAhopeful01 said:

Yes I’m staying on track for a net coll. North of 700. I question if I should play it safe with a lower base but still keep the draw at 30%. Ie.) $150k base and 30% over 500k net coll. yearly.. 

$150k + (30% of coll over $500k) = $210k

This lesser base would result in less employer-sponsored 401k contribution, i.e., 6% of $150k = $9k vs 6% of $180k = $10.8k. That $1,800 compounded over time can amount to much more. 

If your goal is to play it safe, then you can choose a lower threshold but "lose out" on additional retirement benefits that compound over time. The alternative is not making your collections cutoff and making even less at the higher salary... Countering with 32% at $150k will amount to about $4,000 difference. 

With a lower base and bonus threshold, you could always just invest that extra bonus money yourself. And then you can decide how hard you want to work for the next year. At a higher bonus threshold, you're going to want to bust your butt to make your bonus. That might be stressful and create a situation when you do end up wanting to scale back your workload, if ever. 

Edited by Sed
Wording

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9 minutes ago, Sed said:

$150k + (30% of coll over $500k) = $210k

This lesser base would result in less employer-sponsored 401k contribution, i.e., 6% of $150k = $9k vs 6% of $180k = $10.8k. That $1,800 compounded over time can amount to much more. 

If your goal is to play it safe, then you can choose a lower threshold but "lose out" on additional retirement benefits that compound over time. The alternative is not making your collections cutoff and making even less at the higher salary... Countering with 32% at $150k will amount to about $4,000 difference. 

With a lower base and bonus threshold, you could always just invest that extra bonus money yourself. And then you can decide how hard you want to work for the next year. At a higher bonus threshold, you're going to want to bust your butt to make your bonus. That might be stressful and create a situation when you do end up wanting to scale back your workload, if ever. 

Thanks for that helpful input Sed. Yeah, I can see the advantages and disadvantages of either scenario. But to be honest I only took 10 days PTO last year and had to bust my butt to make the 200k, alternatively if I happen to not make bonus for some odd reason settling for $180k isn’t half bad. It would be peculiar for me to not make at least another 15-25k at year end in the form of a bonus.. but never know.

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1 hour ago, PAhopeful01 said:

Thanks for that helpful input Sed. Yeah, I can see the advantages and disadvantages of either scenario. But to be honest I only took 10 days PTO last year and had to bust my butt to make the 200k, alternatively if I happen to not make bonus for some odd reason settling for $180k isn’t half bad. It would be peculiar for me to not make at least another 15-25k at year end in the form of a bonus.. but never know.

No problem. You can always counter and see what they say. 

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Don't know if this is the place, but are we legally entitled to billing and collections under our npi? My employer has refused to answer my emails of requests for my numbers outside rvu.

Sent from my SM-N975U1 using Tapatalk

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