Pay parley for a new practitioner
By Louis Sportelli, DC

The prospect of negotiating a compensation package that you can live with may seem like risky business. You may think, “If I negotiate, I run the risk of having the job offer withdrawn.”

The risk is minimal. In fact, negotiating a compensation package is an opportunity. It is

your chance to define, communicate, and achieve what you want.

To get a fair or generous compensation package, you'll need to do your homework and take into account more than just financial considerations. Take into consideration the hiring doctor’s perspective, the factors that determine fair compensation, and the employment contract.

THE HIRING DC’S PERSPECTIVE

Many new associates make the mistake of thinking they can demand a high salary because of the large investment they have made in their chiropractic education. This is understandable, but in the real world, this approach may not go over well.

From a hiring doctor’s perspective, a new graduate initially brings very little to the table other than a willingness to learn, the potential of youthful enthusiasm, and the motivation to work hard.

You must convince the doctor that hiring you will not mean a reduction in his or her income or cause a change in lifestyle. Of course, many established doctors do want to share their experiences and wisdom with new DCs — but not at the expense of their own standard of living.

So, keep in mind that one of the key things a hiring doctor is looking for is a “good value” in an associate. This means it’s up to you to sell how you will benefit the hiring doctor and the practice.

A good place to start is to find out why the doctor wants to hire an associate in the first place. (See sidebar, “Making a good match” for examples.)

COMPENSATION FACTORS

Many different things affect compensation. Here are some things to consider before you enter into negotiations:

• Location, location, location. Typically, associates who are compensated with a flat salary receive anywhere from $30,000 to $60,000 per year. This is a large range, but compensation packages can vary significantly from one part of the country to another and between urban and rural communities. Keep in mind that the cost of living will vary across the country as well.

• Pay structure. Another factor is how the pay is structured. (See sidebar, “Pay structure options.”) Each of these options has advantages and drawbacks. It is incumbent upon you, the new doctor, to understand these and to rule out practice situations that are less likely to be right for you.

• Patient profile. In addition to location and pay structure, the case mix of the practice will often affect compensation. Remember, most percentages are based on the “collected” revenue not the “billed” charges.

Note: If you are compensated through a percentage arrangement, it is especially important to review the source of patients. Your compensation could be considerably less than you expect if revenues come from a high amount of insurance paid on a schedule.

THE EMPLOYMENT CONTRACT

Let’s say you’re fortunate enough to be offered a position that’s a good fit for you and for the hiring doctor. Are you done? Not quite. Remember that money isn’t everything.

Some new doctors let their guard down once they receive and tentatively accept an offer, ignoring the finer points of the employment contract. As a result, they end up in a frustrating job that doesn’t live up to their expectations or goals.

Be very careful when dealing with contracts — they represent a legal obligation once signed. Furthermore, never sign anything you don’t completely understand. Because of the nature of contracts and the complexity of the issues, have any contract you are considering reviewed by legal counsel. The money you spend doing this could save you years of frustration.

One thing to look for in an employment contract is a non-compete clause. If this type of clause is in your contract, make sure it’s reasonable. Many associates fall into the trap of signing a contract with an unreasonable noncompete clause thinking it won’t hold up in court. However, to have a contract thrown out by the court, you would have to hire an attorney and fight it — an expensive and inconvenient process. You are better off to make sure the clause is something you can live with or to negotiate it out of the contract before you sign.

BEST APPROACH FOR SUCCESS

By doing your research on factors that determine salary, concentrating on how you will benefit the hiring doctor and the practice, and reading your contract carefully, you increase your chances of receiving an offer that will be a good match for you and your career goals. And the hiring doctor will benefit, too — resulting in a win-win situation for all involved.

Louis Sportelli, DC, is president of NCMIC Group, Inc. (www.ncmic.com or 800-769-2000), a provider of malpractice insurance.

DISCLAIMER: The accompanying text is offered solely for general information and educational purposes. It is not offered as, nor does it constitute, legal advice or opinion. You should not act or rely upon this information without seeking the advice of an attorney.