3 Factors That Determine Physician Compensation

Physicians who are aware of their worth can negotiate their salary professionally. Physician salary negotiation is a matter of business. If approached correctly, good compensation will be determined. It is important for a physician to get fair compensation for a job well done. There are important factors that are considered when determining physician compensation. These factors help to reach actual compensation during the process of negotiation between the physician and employer.

Questions help physician compensation negotiation between prospective employers and physicians to be smooth. A prospective employer can ask a physician how much money they want in exchange for their services. This gives the physician an opportunity to counteroffer. A physician can also ask questions regarding the terms of the contract and what will bring favorable outcomes for all parties. This helps to reach the desired salary mark.

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Physicians usually struggle to start a conversation to negotiate their salaries. Some employers may get offended when a physician asks about their compensation too early. A reasonable conversation conducted between a physician and an employer helps to ease anxiety between the two parties.

When a physician is joining a hospital and cannot bargain for fair salary compensation, they can consider other incentives. Every type of work can have a scary experience in one form or another. Physicians can consider negotiating for workers’ compensation. This is a type of insurance that covers medical expenses in case of injuries in the workplace. 

Many Factors Have An Important Influence On Physician Compensation

There are several factors considered during physician salary negotiations. Some of these factors include

1. Specialty

This is a major determining factor for physician compensation. Procedure-based specialists and primary care fields have different compensation rates. American Medical Association claims that “the highest-paying medical specialists are generally procedure based”. Cardiologists, plastic surgeons, dermatologists, and radiologists are procedure-based specialists and receive higher compensation. Internal medicine physicians and pediatricians are in the primary care fields and receive a lower income.

2. Region

Physicians in urban areas earn a little lower than those in mid-size and rural areas. This is mainly because of the issues of demand and supply. Urban areas have a high population, hence, there are more doctors available to be hired in hospitals. Hiring managers will employ doctors to fill in key positions while offering low compensation in urban areas. 

3. Length Of Experience

Health organizations are always willing to pay high salaries to physicians with a lot of experience. Obviously, a physician who has been in the field for several years can work more efficiently than one who has just finished medical school. Hence, the length of experience is a major compensation factor that is considered by both parties. 

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Conclusion

Securing a decent salary is not always easy for any physician. This, however, does not mean that one should settle for less. The factors mentioned above help to determine how a physician can approach a compensation negotiation. 

There are other factors to be considered when computing the actual income while considering incentives, such as workers’ compensation and non-salary pay. Health organizations and physicians have to overcome the challenges of the factors determining compensation to reach a good physician’s salary in the end.