Skip to content
  • About
  • Contact
  • Contribute
  • Book
  • Careers
  • Podcast
  • Recommended
  • Speaking
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking

Medical residents: How to avoid negotiating landmines

Todd Skertich
Finance
August 18, 2020
27 Shares
Share
Tweet
Share

After ten grueling years of training to become a physician, you can finally see the light at the end of the tunnel. You may be receiving countless emails that advertise amazing starting salaries, sign-on bonuses, and/or loan repayments that almost seem too good to be true. Dozens of calls are coming in on a weekly basis from recruiters who want to help you find your dream job, and the prospect of quadrupling your income has certainly caught your attention.

Enjoy this time; you deserve it! But it is equally important to proceed with caution. You do not want to get caught up in all the excitement with blinders on. Those blinders could have you wandering into a field filled with negotiation landmines as you attempt to secure your first opportunity out of residency.

You are well prepared for your medical career, but are you equally prepared for all that comes with negotiating your first contract? Do you know how to negotiate a contract? Have you considered the possibility that you could ruin your chances of landing that perfect job in the contract negotiations process? Many have learned that lesson the hard way, but you don’t have to!

View the video below to see how this physician fell prey to illusions of grandeur and misinformation:

YouTube video

Compensation is certainly one factor you must consider when determining which opportunity is best for you, but is not the only consideration, and for some, this may not be the most important. Your colleague may accept an opportunity with a significantly higher starting salary, but you may determine that you would not thrive in the same type of community or practice. Ultimately, you must consider the factors that are most important to you and make the best decision for you.

In my career, I’ve negotiated some $600 million dollars of physician compensation packages, and I understand the importance physicians place on starting salaries. But you cannot overlook how you will maintain or increase your income once your guaranteed salary expires. Many physicians receive a two year guaranteed salary, and after those two years expire, their income is based on their productivity.

I’ve seen too many physicians purchase homes and cars; then create a lifestyle based on their initial guaranteed salary. Those who are unable to sustain that level of income can feel under-valued and may seek to find the next guaranteed salary. Some physicians work for 6 or 7 different employers over 10 to 12 years. Suffice it to say, you do not want to find yourself in that situation.

To avoid this pattern, I recommend placing as much focus on the big picture in your negotiations as you do your initial salary. You have to consider what it will take to maintain or increase your income over time. Here are a few questions that will point you in the right direction:

  • Can you walk me through the compensation structure?
  • Is there a productivity formula? If so, how does it work?
  • If I perform well, what is the income potential for year 1? Year 2?  Year 3?
  • Do you anticipate acquiring any new systems that will impact and improve patient care?
  • Describe the process and formula you use in transitioning from a guaranteed salary to productivity compensation.
  • How have other physicians adapted to the change after two years?
  • How many patients will I need to see to earn $xxx per year?
  • Per month?
  • Per week?
  • Per day?
  • What is the current waiting period for a new patient to see a physician?
  • How busy will I be from day one?
  • Is the hospital going to help market my practice? If so, can you walk me through what the marketing plan looks like?
  • What are my responsibilities to build a successful practice here, and are there any bonuses if I exceed my milestones?

Todd Skertich is managing partner, Arlington Healthcare and founder, Adventures in Medicine and Physician Career Planning. He is the author of The Art of Physician Negotiation and can be reached on Twitter @adventuresinmed.

Image credit: Shutterstock.com

Prev

Why gardening is the best medicine

August 18, 2020 Kevin 4
…
Next

A medical student graduates with a lack of closure [PODCAST]

August 18, 2020 Kevin 0
…

Tagged as: Practice Management

Post navigation

< Previous Post
Why gardening is the best medicine
Next Post >
A medical student graduates with a lack of closure [PODCAST]

More by Todd Skertich

  • Understanding the business of medicine: How to pursue excellence in the medical field

    Todd Skertich
  • Market-driven health care: What you need to know before searching for a position

    Todd Skertich
  • Moving forward in medicine with your significant other

    Todd Skertich

Related Posts

  • Digital advances in the medical aid in dying movement

    Jennifer Lynn
  • Teaching residents to teach will improve medical education

    Kristin Puhl, MD
  • It’s time to recognize the rights of medical students and residents

    Thad Salmon, MD
  • How the COVID-19 pandemic highlights the need for social media training in medical education 

    Oscar Chen, Sera Choi, and Clara Seong
  • Medical residents and academic due process: Know your rights

    Todd Rice, MD, MBA
  • End medical school grades

    Adam Lieber

More in Finance

  • 10 commandments of ethical affiliate marketing for physicians

    Aaron Morgenstein, MD & Amy Bissada, DO
  • From pennies to attending salaries: Why physicians should teach their kids financial literacy

    Michele Cho-Dorado, MD
  • Retirement planning: Understanding sequence of returns risk

    Jordan Bilodeau, CFP
  • The short-term rental tax loophole: a game-changer for physicians

    Jeff Anzalone, DDS
  • Why every doctor should have a side gig

    Anonymous
  • Maximize your practice’s revenue: Follow these 5 billing metrics

    Aaron Morgenstein, MD & Heather Signorelli, MD
  • Most Popular

  • Past Week

    • What is driving physicians to the edge of despair?

      Edward T. Creagan, MD | Physician
    • The untold struggles patients face with resident doctors

      Denise Reich | Conditions
    • Beyond pizza and pens: National Doctors’ Day should be about saving lives

      James Young, MD | Physician
    • Physicians are a finite resource we need to protect

      Jack Resneck, Jr., MD | Physician
    • From clocking in to clocking out: the transition to retirement

      Debbie Moore-Black, RN | Conditions
    • Lessons from an orthopedic surgery journey [PODCAST]

      The Podcast by KevinMD | Podcast
  • Past 6 Months

    • The real cause of America’s opioid crisis: Doctors are not to blame

      Richard A. Lawhern, PhD | Meds
    • Nobody wants this job. Should physicians stick around?

      Katie Klingberg, MD | Physician
    • The vital importance of climate change education in medical schools

      Helen Kim, MD | Policy
    • The fight for reproductive health: Why medication abortion matters

      Catherine Hennessey, MD | Physician
    • Resetting the doctor-patient relationship: Navigating the challenges of modern primary care

      Jeffrey H. Millstein, MD | Physician
    • It’s time for C-suite to contract directly with physicians for part-time work

      Aaron Morgenstein, MD & Corinne Sundar Rao, MD | Physician
  • Recent Posts

    • Lessons from an orthopedic surgery journey [PODCAST]

      The Podcast by KevinMD | Podcast
    • Beyond pizza and pens: National Doctors’ Day should be about saving lives

      James Young, MD | Physician
    • Maximizing physician potential: How coaching can aid in conflict resolution, enhance health care leadership and build stronger teams

      Asha Padmanabhan, MD | Physician
    • The future of education: AI empowerment, YouTube college credits, and the impact on traditional colleges

      Harvey Castro, MD, MBA | Tech
    • The beauty of a patient’s gratitude

      Dr. Damane Zehra | Conditions
    • Physicians are a finite resource we need to protect

      Jack Resneck, Jr., MD | Physician

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

Leave a Comment

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

CME Spotlights

From MedPage Today

Latest News

  • Moderna's Steep COVID Vaccine Price: Corporate Greed or Capitalism?
  • House Republican Argues Against FDA Budget Increase
  • Prescriptions for Stimulants Jumped During the Pandemic
  • Federal Judge Strikes Down ACA's Preventive Care Coverage Requirements
  • Pandemic Jump in ED Visits for Firearm Injuries Continued Into 2022

Meeting Coverage

  • VTE Risk in Recurrent Ovarian Cancer Increases With More Lines of Chemotherapy
  • Obesity's Impact on Uterine Cancer Risk Greater in Younger Age Groups
  • Oral Roflumilast Effective in the Treatment of Plaque Psoriasis
  • Phase III Trials 'Hit a Home Run' in Advanced Endometrial Cancer
  • Cannabis Use Common in Post-Surgery Patients on Opioid Tapering
  • Most Popular

  • Past Week

    • What is driving physicians to the edge of despair?

      Edward T. Creagan, MD | Physician
    • The untold struggles patients face with resident doctors

      Denise Reich | Conditions
    • Beyond pizza and pens: National Doctors’ Day should be about saving lives

      James Young, MD | Physician
    • Physicians are a finite resource we need to protect

      Jack Resneck, Jr., MD | Physician
    • From clocking in to clocking out: the transition to retirement

      Debbie Moore-Black, RN | Conditions
    • Lessons from an orthopedic surgery journey [PODCAST]

      The Podcast by KevinMD | Podcast
  • Past 6 Months

    • The real cause of America’s opioid crisis: Doctors are not to blame

      Richard A. Lawhern, PhD | Meds
    • Nobody wants this job. Should physicians stick around?

      Katie Klingberg, MD | Physician
    • The vital importance of climate change education in medical schools

      Helen Kim, MD | Policy
    • The fight for reproductive health: Why medication abortion matters

      Catherine Hennessey, MD | Physician
    • Resetting the doctor-patient relationship: Navigating the challenges of modern primary care

      Jeffrey H. Millstein, MD | Physician
    • It’s time for C-suite to contract directly with physicians for part-time work

      Aaron Morgenstein, MD & Corinne Sundar Rao, MD | Physician
  • Recent Posts

    • Lessons from an orthopedic surgery journey [PODCAST]

      The Podcast by KevinMD | Podcast
    • Beyond pizza and pens: National Doctors’ Day should be about saving lives

      James Young, MD | Physician
    • Maximizing physician potential: How coaching can aid in conflict resolution, enhance health care leadership and build stronger teams

      Asha Padmanabhan, MD | Physician
    • The future of education: AI empowerment, YouTube college credits, and the impact on traditional colleges

      Harvey Castro, MD, MBA | Tech
    • The beauty of a patient’s gratitude

      Dr. Damane Zehra | Conditions
    • Physicians are a finite resource we need to protect

      Jack Resneck, Jr., MD | Physician

MedPage Today Professional

An Everyday Health Property Medpage Today iMedicalApps
  • Terms of Use | Disclaimer
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

Leave a Comment

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...