Physician Compensation Methods Printed from ACP-ASIM Online. MD Internal Medicine Consultants Financial reimbursement programs vary greatly, from productivity driven formulas, to guaranteed salaries, and equal share models. Hospitalists, primary care physicians, and specialists generally have different salary structures. These are then further affected by years of service, geographic location, and practice goals. Most established physicians are paid on a productivity formula.
Productivity is income based on objective or subjective factors based on the goals of the group.
Generally, there are minimum goals set by each practice with possible penalties for not reaching this goal. These can include a lower net to expense ratio, cuts in benefits, or termination. Important issues to discuss are the factors used to assess productivity, the minimum goal, the number of physicians currently reaching the goal, the average time it takes a new physician to reach the goal, and the specific penalties or rewards involved. If income is based on collections, it is important to know the net to expense ratio. This may also vary based on the income brought into the practice by each physician is low or high.