Rheumatologists should bear in mind whether their employer bases productivity on collections or relative value units (RVUs)—a measurement used to assign a point value to procedures, encounters, etc. that a physician does, which is then translated into a dollar value for compensation and bonus purposes.
Along with that information, rheumatologists should know their personal productivity. “If you are going to ask your employer for a raise because you outproduce your salary, then you need to know the amount by which you are actually outproducing your salary,” says Mr. Jennings, adding that you’ll need to keep in mind your personal allotment of overhead as well.
If you can show that your collections exceed the combination of your salary and overhead, then you are in a good position. If RVUs are a factor in your productivity/income calculation, know how many work RVUs you account for in your practice. Compare those with other contracts for a rheumatologist in your market or nationally. “If you have a salary that is set at the national median, but you produce RVUs at a volume equivalent to or better than the 75th percentile, then you have leverage to ask for a raise,” Mr. Jennings says.
How Much to Ask For
There are different schools of thought on whether or not you should ask for a specific dollar amount or simply more money. “It depends on your comfort level and how specific your financial needs are,” says Mr. Jennings, who advises stating an amount. “Keep in mind that whatever amount you ask for will probably be negotiated down.”
As a physician, if you can put a multiplier (an amount you should be paid per RVU) to your productivity, you should be able to give that specific number to your employer, Mr. Jennings explains. Or if you can show that your net collections are regularly a set amount over your salary and overhead, then you should ask your employer to match that number.
Often, productivity incentives are built into a physician’s employment agreement. Employers will typically set a salary that leaves room for a rheumatologist to outperform and earn beyond that with a bonus. “If you’re a high producer, then a flat base salary is not ideal,” Mr. Jennings says. “If you are already in a contract in which you are not paid by what you produce, you may want to consider asking your employer to switch you into a compensation structure that is based on RVUs. It shows that you are eager to earn more and that you know you have to produce accordingly to hit those numbers and get paid more.”
