Adding a doctor to your practice creates a new buzz. Whether you are in a small town and looking to retire or you have multiple practices with multiple associates, adding someone new changes the dynamic. Nostalgia permeates the air as experienced professionals see the passion of the new associate and remember when they were young and fresh from optometry college. A new associate optometrist gives a different viewpoint when evaluating patient care and staff dynamics. While adding a new doctor is exciting, negotiating compensation in the associate agreement can be tricky. The employing doctor wants to pay less while the associate needs more. The employing doctor wants to get a good return on the investment, while the associate wants to be rewarded for effort that contributes to the success of the practice.
Here are 3 methods to paying your next associate.
- Salary – This method typically benefits associates at the beginning of their careers and later favors the employers as production typically increases at a faster pace than salary increases. Many new associates desire this method because it guarantees them a set amount of dollars per month so they can pay their bills.
- Owner Doctor = High risk | Moderate reward
- Associate = Low risk | Low reward
- Salary + Percentage of Production – Many associate agreements find common ground with this method as it affords the associate a guarantee, although lower than salary only, while providing the employer a means of motivating the associate.
- Owner Doctor = Moderate risk | High reward
- Associate = Low risk | High reward
- Percentage of Production – When this method is used properly an associate can be compensated very nicely while an owner doctor, or employer, is relieved of the financial burden of a highly compensated employee. This method is usually a win-win in a healthy growing practice. The associate is motivated and often puts more time and energy in driving growth than when he or she is paid a flat salary no matter how he or she performs.
- Owner Doctor = Low risk | High reward
- Associate = High risk | High reward
The above compensation methods are often combined over the course of an employed optometrists career. Many times the best method is more than finances. The best method is often tied to an optometrists quality of life and what he or she values as important. Sometimes associates find they want to show up for clinic, see patients that others have generated, and go home to other hobbies and priorities. The best compensation package is found in good communication between the employing owner doctor and the associate optometrist working to find the right fit for both parties.
