Resource Center

Compensation Value

To determine the value of a compensation package, quantify the value of each element of the package, then add it all up.

Base salary:                                      $ __________
Incentive/production bonus:         __________
Malpractice insurance:              __________
Health insurance:                   __________
Dental insurance:                   __________
Life insurance:                     __________
Disability insurance:               __________
Pension plan:                       __________
Tax shelter annuities:              __________
CME stipend:                        __________
Relocation expenses:                __________
Other:                              _________
SUBTOTAL:                                         $ __________
Number of vacation days:            __________
Number of CME days:                 __________
Number of holidays, personal days:  __________
Dollar value of above days:         __________
TOTAL REMUNERATION:                               $ __________

Standard benefits generally have a value of 15 to 25 percent of the salary component of the package. Moreover, salary and standard benefits are not the only elements that contribute value to a compensation package. Packages may include temporary housing, tuition reimbursement and assistance with repaying student loans. Occasionally, packages also include other elements such as interest-free loans, partnerships and administrative stipends. Sign-on bonuses exist but are not very common. In the end, you have to decide which package is most advantageous for you.

As an independent contractor (1C), you will earn an annual salary, but will not receive a benefits package. What is competitive varies from region to region. Remember that what a tax-exempt institution can offer must be within federal guidelines.

Almost all the opportunities you evaluate will offer you malpractice coverage. Make sure you know whether it is an occurrence or a claims-made policy. If you are covered by a claims-made policy, who is responsible for the tail payment? (The tail payment is the premium paid to the insurer when the policy is canceled to cover claims that may be made in the future.) Most private practices offer claims-made policies. Tail payments are the exception, not the rule.

There is also the possibility that you will work at a facility that is self-insured. If this is the case, how much coverage will you have? Will you have the option of moonlighting at other facilities with this insurance coverage?

A competitive benefits package might include:
Vacation time:            4 weeks
CME:                      1 to 2 weeks
                          $1,500 to $3,000 stipend
Holidays:                 8 to 10 days per year
Sick/personal days:       5 to 15 days per year
Health insurance:         Family coverage
Dental insurance:         Family coverage-copayment
Life insurance:           1-1 x salary
Disability:               Often the weakest part of the package
                          Consider buying more
Pension plan:             Contributory or non-contributory
Tax shelter annuity:      401k or 403b (non-profit). Some facilities
                          will match a percentage of your contribution
Dues & licensure:         Some facilities offer
Relocation:               Varies from package to package. If offered, is
                          usually pack and ship.