Purely production based pay?

[ddk1998]

I'm a new grad and I recently received an offer from a family practice clinic in a smallish town in Oregon. The salary is $75K, but as stated in the contract, "after 6 months but less than 12 months of employment, the Employee is eligible to convert the annual salary to a 'Production Based Salary". Once I am converted to production based, there will be no guaranteed salary. I have heard of production based bonuses, but to be purely production based scares me, mostly because I haven't heard of it before. The practice has 3 other mid-levels working there now (2 NP, 1 PA), and they have all been there for at least 5 years (one for 15), which seems to be a good sign.

 

Is it advantageous for the practice to have me as purely production based? The thought of having to work extra hard before taking a vacation, in order to pay for the vacation seems weird. The way in which the production is calculated does take into account the practice as a whole: Monthly salary = (total monthly employee charges) x (Average collection ratio x (1-Clinic expense ratio)).

 

Any advice would be much appreciated! Thanks