BizQuiz: Do you have a clue about doctor pay? (Answer 3c)
Skillful private eyes will uncover differing opinions on this subject, but I recommend that doctor production cover wages and retirement contributions.
Because different people use the term “compensation” to refer to different figures—wages only, the total compensation package paid to the doctor, the total hospital cost of employing the doctor, and so on—this topic is ripe for misunderstanding and confusion. In the percentage ranges discussed earlier in this article, I include wages and retirement contributions paid on behalf of the doctor (deferred compensation). Other benefits—which typically include CE, health insurance, liability insurance, and professional dues and licenses—are paid in addition to the production percentage. They often total another $8,000 to $12,000 worth of compensation.