Establishing a salary can be a challenge for NPs. Deducting 40% of the NP's gross generated income for overhead expenses (rent, benefits, continuing education, supplies, malpractice, lab expenses, and depreciation of equipment) leaves $104,280 for the 15-patient-per-day NP and $166,925 for the 24- patient-per-day NP. Further deducting 15% of that figure to pay a physician for consultation services leaves $88,638 in salary for the 15-patient-per-day NP and $141,887 in salary for the 24-patient-per-day NP. Deducting 10% for employer profit leaves $79,775 in salary for the 15-patient-per-day NP and $127,699 for the 24-patient-per-day NP (Buppert, 2011). What salary would you propose for the contract renewal? How does your salary proposal fit in with the community standard for an NP in a similar practice? Use logical reasoning, and provide evidence based rationales for your decisions. Keep in mind that your negotiation terms and conditions must be within the legal scope of practice for an ANP.
At 20 patients per day I would bring in $257600 in total revenue, and take home pay would be 106414.56 per year based after deducting the loss in collections, overhead, physician consult and employer profit. Many practices expect to make a profit equal to an employee’s salary (Buppert 2015). So, at my current level of patient intake there is some room to negotiate. If this is based on the first part of the case study having 2 more years of experience would increase my confidence and productivity reducing the need for MD consultations. Buppert (2015) stated that experienced NP’s pay 10-15% for these consultation fees. I would negotiate to have the consultation fees reduced to 10% which would increase my take home pay at this point to $ 112,679.10 and request that all licensure and continuing education fees are covered by the employer. According to Nurse Journal the average NP salary in the state of Nebraska is $94,130 with the top 10% earning $124,020 (Nurse Practitioner, 2017). Which would place my request close to the areas median compensation for NP’s. Buppert, C. (2015). Negotiating salary...published in the July/August issue of NP World News. American Journal For Nurse Practitioners, 1(3) Nurse Practitioner Salary by State (2017). Retrieved from - practitioner/nurse-practitioner-salary-statistics/.
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- Fall '15
- Nursing, Salary