Non-Monetary Compensation: What You Can Expect
By Wendy Abdo, Staff Writer and Michael P. Broxterman, COO Pinnacle Health Group
Finding the going monetary rate for your particular specialty is as easy as logging onto the MGMA’s website and downloading the current salary survey. However, it is not so easy to determine whether you are being offered the best combination of “little extras.”
So what non-monetary compensation should you expect? This depends on a wide range of factors including the following:
– Your personal goals and perceptions
– Care of patients
– Medical organization’s objectives
– Methods of reimbursement
– Government regulations
Besides straight salary and bonuses, there are many different types of non-monetary compensations such as:
– Paid vacation, sick leave, and holidays
– Paid continuing medical education (CME)
– Paid moving expenses
– School loan reimbursements
– Paid malpractice insurance
– Fringe benefits such as health, life, dental, vision, and disability insurance
– Flexible work-hour schedules
– Income guarantees
– Prestigious title of “Medical Director”
– Paid miscellaneous expenses such as for pagers, cell phones, and travelling.
Paid vacation, sick leave, and holidays are very popular. Most medical organizations provide these benefits to their staff. Typically, a physician gets three to four weeks vacation a year. To be more competitive, an organization may, for instance, increase vacation time if the physician values extra time off to spend with family and in personal pursuits.
Another incentive is paid continuing medical education (CME). According to a recent survey?, CME is included in the physician’s compensation package 92 percent of the time with an average yearly allowance of $3,100. This enriches a physician’s medical skills and also adds value to the hospital or group practice. Many groups will pay all related expenses including classes, cost of meals, car rentals, airfare, and accommodations.
Moving your family to a new place can be difficult if you are doing it by yourself. Hospitals and group practices can offer relief by paying the physician’s moving expenses. This will help the doctor feel good about the move and less inundated with the hassles of relocation. S/he can concentrate on settling in and start out on the right foot. A 2002-2003 survey mentioned that 99 percent of medical organizations paid this expense with an average allowance of $9,000.
School loan reimbursement is a definite plus, especially for residents and young doctors who can easily carry debts of $200,000 or more. However, only 12 percent of medical organizations covered school loan forgiveness in 2002-2003, according to a recent study; whereas, 22 percent covered this cost in 2000-2001.
If you are a surgeon or OB-GYN, you may want them to cover your malpractice premiums. In 2002-2003, 91 percent paid for the doctor’s malpractice insurance. Rising rates worry physicians, especially in the crisis states. If the prospective organization is located in a crisis area, you may feel more comfortable taking the position if these insurance costs were paid. This benefit is often a deciding factor in whether a physician elects to take the opportunity over a competing one.
Other all-important options are fringe benefits such as health, life, dental, vision, and disability insurance. It is hard to imagine a medical organization not providing health insurance for its staff, yet other types of insurance such as dental, vision, and disability should not be overlooked as a viable source of non-monetary compensation that matters. According to the survey, 96 percent included health insurance and 72 percent paid disability and retirement benefits.
Some physicians put a high value on their overall quality of life and free time. Because of this, you may desire a flexible work-hour schedule in your contract. This feature is especially attractive to physicians who wish to raise a family and be more involved with children. However attractive, this form of compensation is not widely used by hospitals and group practices.
Income guarantees are very popular. The 2003 survey stated that 38 percent of medical organizations offered income guarantees, up from just 34 percent a year ago. This benefit does a lot to ease fears when a physician is starting out in his/her own practice. Many times, doctors that are moving to a new area are worried about the patient base and draw area. Will the solo practice really be successful? What if it does not generate enough revenue? Having an income guarantee does much to dispel these uncertainties.
Sometimes hospitals starting new programs will give the title of “Medical Director” to the newly hired physician who will be instrumental in the startup program. Though this appointment is relatively rare in the job market, the title is a definite advantage since it adds professional value to the physician’s repertoire. In addition, the appointment often comes with additional money as hospitals can pay these physicians a consulting fee to get the new program up and running.
Medical organizations may also pay for often-overlooked technological expenses such as pagers and cell phones. In addition, they may include travelling expenses if the doctor is regularly required to visit multiple offices at different locations. Some have even provided car allowances. However, these forms of compensation are not usual and physicians normally will pay for these expenses themselves.
While salary and bonuses are of primary importance to a physician, other non-monetary forms of compensation can make all the difference. You can expect certain benefits like health insurance, paid vacation, and holidays. However, some non-monetary rewards come as a surprise and can really add significant value to the position. During your job search process, you should look for the best mix of monetary and non-monetary compensation that most closely matches your personal and professional needs.
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MHA 2003 Review of Physician Recruitment Incentives