I have the opportunity to work as an independent contractor and have questions. I currently make $72/hr and work at a hospital that provides all benefits (medical, dental, 401K, etc). For the IC position, the offer is $70 per hour on weekdays and $100 per hour on weekends, and will see 25 patients per day. Shifts will be about 8 hr days. I'm asking for opinions and advice in how I would go about negotiating and if this rate seems fair? It's for a specialty Infectious Diseases and I will be seeing patients in the hospital setting.
Pls give input on questions I should ask and what would be fair. I know I need to put aside costs for taxes, benefits etc... or should I negotiate this into my contract and get paid per encounter?? Please help! The contract is due in a few days
Duly noted. Thanks for the input. It is much appreciated! Everything you said makes complete sense. I wanted to clarify, I don't see it as being a "fancy entrepreneur" but rather literally working for myself because I have my own patients and don't have to deal with all the headaches that come with working for an organization and being an employee...
although I'm sure there's different issues and problems etc
I agree there is a plus to having your own patients but I have that as a W2 also and keep in mind you will never be devoid of all the headaches that come from being an employee working for an organization no matter what they call you. The 1099 although a fine option in my experience is a way for employers to avoid having to pay a share of some taxes and also can become an easy avenue to distance themselves from a provider when an adverse event occurred. Maybe others will write in but I have not found it to be any different from W2 so I guess the good news is there really doesn't seem to be different issues and problems as long as the person knows the compensation caveats. Best wishes.
Very helpful input! It's nice to know where the offer stands, because of course they make it "seem" favorable. What do you suggest about negotiating for gross receipts? How would I word this? 25 patients seem like a lot, but then again it seems the norm for hospitalists... there's going to be a training period, and I'm aware that it will take some time for me to get acclimated and efficient in seeing this volume of patients. He did mention he will compensate me for additional patients. He would also give me an amount $25 per patient (which seems low to me of course) vs $70/hr, whichever one I prefer. Also mentioned that malpractice would be provided under my name in separate policy and would give me health insurance allowance of $250 per month
I have done a general search and believe me, I know they make a ton of money! I'm in the wrong line of work LOL
I negotiated 35% for myself. He covers an additional insurance policy for me in addition to the one I have. His practice also does 100% of the billing processing and handles any issues that may come up on their own. This is pretty standard for my area, which is a collaborative state, but depending on your circumstances you might be able to negotiate more (or less).
I actually don't think the $25 a patient sounds that bad if your load is truly going to be that high, especially if you're working in an area that has lots of uninsured patients. It basically means you get paid no matter what. It sounds better than your current deal.
Assuming 40 hours a week, you're making about $145,600 at $70/hr. At $25 per patient seeing 25 patients a day, in a 5 day week that's $3125 or $162,500 in a year. You could negotiate a higher number per patient over the 25, as well as more for weekends. You could also likely negotiate a bit more per patient in general.
I also like the pay per patient because it doesn't force you to be counting hours and rewards you later on when you're efficient. My first day a week rounding in the hospital on cardio patients will take me a full 7 or 8 hours or so if there's lots of new patients at your volume, but by the end of the week I can knock out the volume in just a few hours. When I'm done, I'm done, I don't have to be sitting around milking the clock.
Jules A, MSN
8,864 Posts
I agree there is a plus to having your own patients but I have that as a W2 also and keep in mind you will never be devoid of all the headaches that come from being an employee working for an organization no matter what they call you. The 1099 although a fine option in my experience is a way for employers to avoid having to pay a share of some taxes and also can become an easy avenue to distance themselves from a provider when an adverse event occurred. Maybe others will write in but I have not found it to be any different from W2 so I guess the good news is there really doesn't seem to be different issues and problems as long as the person knows the compensation caveats. Best wishes.