Appropriate Physician Payments within FMV Range

Negotiations with hospital administrators can be difficult.  Whether it’s because you don’t like confrontations, or you are dealing with a tough executive, there are steps you can take to prepare yourself for the conversation.

Use the market data, as well as your current payment rate, to determine an appropriate payment range for your services.  If you are currently getting paid under the 50th percentile, determine the difference in pay that’s needed to get you to the 50th percentile.  Ask yourself if there could be a good reason for you to be paid at a lower percentile, like a robust payer mix or a large panel size.  If this is the case, think of additional reasons why your payment rate should change.  If instead you’re getting paid at or around the 50th percentile but have reason to believe you should get paid more, determine how much room you have to negotiate at or around the 75th percentile.  Keep in mind that most hospitals consider anything about the 75th percentile not to be “fair market value” unless there are special exceptions.  Special exceptions should include seniority within the physician community, a niche sub-specialty that you practice, any awards or special fellowships you’ve received, on-site presence requirement, or an extremely burdensome call panel.

If you have any questions, don’t hesitate to email me at This email address is being protected from spambots. You need JavaScript enabled to view it..  Check back next week for another tip!

allison

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