Merrit Hawkins recently released an extensive study into physician salaries. In the study, physician salaries break down like so:

• 65% Salary with Production Bonus
• 14% Straight Salaries

The study also examined other compensation models, such as the “eat-what-you-treat” model. Here is a brief rundown of how each model works.

Straight Salary
The number of medical professionals drawing a straight salary is very low, mostly because the only medical professionals who may not be able to pay for their own overhead, such as psychiatrists, are in limited supply at most organizations. The rest are usually paid via a compensation plus bonus model or similar.

Salary With Production Bonus
This model allows for the security of a straight salary with the added impetus of a production bonus. While the model varies between career tracks and specialties, it is the most popular model since it ties remuneration to productivity, which is a model that most accountants can get behind.

“Eat-What-You-Treat” Model
This revolutionary model, which has been reported as working well in many organizations, is 100% commission-based. In this model physicians keep whatever they make after their overhead and salary are paid for. There is still a guaranteed salary involved in this model, but the production bonus seems higher for the physician than it may be in the production bonus model.

Most physicians want a break after a residency or fellowship before going into their next job. Organizations looking to hire them can take advantage of this by offering a signing bonus if they join their organization, and giving them a couple of weeks to a month to spend it before they begin with the organization. Signing bonuses are considered fairly standard in the healthcare industry, despite the recession; only their amounts have diminished. In addition, as long as the contract is properly worded, you can ask for the signing bonus to be repaid if the physician leaves within a certain period of time, so your investment is always protected.

A signing bonus varies widely by profession and specialty. You can find out what the current standard is in your industry by simply asking around. Your current staff physicians will know, as will recruiting firms. A recent study released by Merrit Hawkins revealed that signing bonuses for the 2008/2009 fiscal year ranged from $5000-$75,000, so there really is no set amount. If you are trying to lure residents or fellows who want to take a break, $5000.00 may not be enough for a proper vacation to the various cultural locales that educated professionals may like to visit. It would cover an all-inclusive resort, but certainly not the kind of vacation that a doctor would prefer to take. If this is your focus, make sure that the amount covered can offer a nice vacation; anything less may seem like an insult.

Signing bonuses tend to pay for themselves in retention costs. If a doctor accepts a $10,000 signing bonus and has a contract to practice with the organization for three years, it will cost much more than $10,000 to recruit and replace that doctor. The simple truth is that without a binding contract in place with some sort of incentive, a physician may leave your organization at any time, taking your training, recruitment, and experiential costs with them when they leave. With that in mind, $10,000 seems a small price to pay.

While such a move may be seen as a cheap gimmick by some administrators, marketing a signing bonus is surprisingly effective. Many firms don’t reveal a signing bonus until they are asked about it, so coming right out and letting them know that you are offering it alone can encourage new recruits. Such a move also shows that your organization has a transparency and honesty that physicians may be more likely to want to work with. Only 36% of recruiters offered signing bonuses in 2003, so it will definitely set you apart from your competition.

In the end it comes down to the question – is a recent resident or fellow most likely to join an organization with an excellent signing bonus or an organization with long-term benefits? The short-term financial incentives will win every time.

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Lifestyle and personal experiences are a huge part of both working for an organization and choosing the right candidate. At eMatchPhysicians, we personalize the relationship between physician and employer so that the right fit can be made on both ends. Did you ever think that you would be able to choose a job based on cultural interests? Climate preference? eMatchPhysicians makes that possible.