Growth and expansion brings the exciting opportunity to recruit additional providers. There are several strategies for compensation. Many clinicians enjoy the % of collections model. This model is very effective, if calculated correctly, before conversations with potential clinicians even begin.
TTG is frequently asked to develop employment agreements after the compensation has already been negotiated. More often than not, we believe they are not in favor of the hiring physician and not sustainable for the hiring practice.
It is very difficult to back track expectations, once conceptual compensation models are thrown out.
Before you begin recruiting:
Understand your expense to income percentage. If your compensation is removed (wages through w2), what percent of your income do your expenses reflect? If it’s 80%, that leaves 20% of collections for you. If you are offering a new clinician 40% of collections, you are actually offering the clinician more than you generate.
Factor in the additional costs required to onboard and support an additional clinician.
Factor in additional, ancillary income generated by an additional clinician.
Determine if there are any carve outs for additional expenses such as a scribe, additional marketing, etc.
Consider involving TTG in the calculation of the appropriate revenue share, and the negotiations. It is typically very well received as we are able to educate the clinicians on the nuances of the practice/facility compared to others in the market.
In our experience, 75% of agreements that occur without our involvement are far too generous to the onboarding clinician.
Ultimately, this results in frustration and disappointment two years down the road when you don’t feel rewarded for the risk and investment of clinician services. We want to help you avoid this.
We are excited about your growth and, in an effort to support you in the best possible way, we want you to execute this exciting addition in a sustainable and fair manner.
Contact us for more strategic ideas on ways to create a winning agreement which results in a long term relationship between clinicians.