Keeping in mind, as you grow and feel comfortable in the new role, your estimate may increase. During negotiation, it is imperative to discuss methods of payment. Our textbook describes the four methods of payment currently being offered to NPs: straight salary, percentage of net
NR-510-WEEK 3-DISCUSSION PART 3 3 receipts, base salary plus percentage, and hourly rate. “In a straight salary arrangement, an NP is paid a set amount to perform according to a job description. In a percentage salary arrangement, an NP is paid the amount the NP bills minus accounts receivable, minus the NP’s portion of practice expenses (which includes the expense of physician consultation). In a base salary plus percentage arrangement, an NP is guaranteed a set salary but can make additional salary if he or she generates practice income over some set amount. NPs working on an hourly basis are paid only for the hours worked” (Buppert, 2015, p. 331). Deciding on the arrangement may be difficult, but it is imperative to keep in mind the monetary contribution to the practice. When calculating appropriate salary there are steps to follow. The first thing is to calculate income to the practice based on NP billings. The second step is to subtract 10% for unpaid bills, subtract the calculated figure for practice expenses, which may include 20–50% of earnings, and the cost of physician consultation, which may include 10-20% of net earnings. The final step is subtracting a percentage for employer profit (Buppert, 2015).
- Fall '15
- Salary, Healthcare occupations, Buppert, Dillon