Bonus Structure - Physician Contract Glossary
Bonus Structure
Definition
An incentive payment above base compensation, often triggered by meeting set performance metrics.
Examples in Context
“Physician will receive a $5,000 bonus for exceeding 4,000 wRVUs annually.”
“A quarterly quality bonus of $2,500 will be paid if 90% of patient satisfaction scores exceed benchmark targets.”
Implications for Physicians
- Encourages higher productivity, patient volume, or other goals.
- Can significantly raise total compensation if targets are realistic.
Negotiation Tips
- Request clear, measurable criteria for bonus payouts.
- Ask if partial bonuses apply for near-miss achievements.
- Clarify how frequently bonus payouts are calculated and disbursed.
Red Flags and Pitfalls
- Bonus targets that are unachievable or unrealistic.
- Vague criteria that the employer can change at will.
- Delays in bonus payments not specified in the contract.
Related Terms
FAQs
- “Are bonuses taxed differently?”
- Yes, bonuses may be taxed at a higher withholding rate, but the final tax depends on your total annual income.
- “Do bonuses factor into retirement contributions?”
- Some retirement plans allow bonuses to count toward contributions. Check your plan documents for details.
- “How often should bonuses be paid?”
- Most bonuses are paid quarterly or annually. Clarify this in your contract.
Legal Disclaimer
The information provided in this glossary is for educational and informational purposes only and should not be construed as legal advice. While we strive to provide accurate and up-to-date information, this content is intended to help physicians better understand common contract terms and does not replace professional legal guidance.
For personalized advice regarding your employment contract or other legal concerns, we strongly recommend consulting with a qualified attorney who specializes in physician employment contracts.
You can find experienced legal professionals through our Physician Contract Lawyer Directory.