Performance Conditions - Physician Contract Glossary

Performance Conditions

Definition

Benchmarks or obligations physicians must meet — such as patient volume, wRVU thresholds, or quality metrics — to maintain specific compensation or benefits.

Examples in Context

“Physician must achieve 4,000 wRVUs annually to qualify for the full performance-based incentive bonus.”

“Physician must maintain a minimum of 20 outpatient visits per week to retain the guaranteed salary structure.”

Implications for Physicians

• Directly influences compensation, bonuses, and job security.
• May create pressure to meet volume goals, impacting work-life balance.
• Failure to meet conditions may result in income reduction or termination.

Negotiation Tips

• Request clearly defined performance metrics to avoid ambiguity.
• Ask for flexibility in case of unexpected patient volume changes.
• Negotiate partial credit for achieving 80-90% of the target.

Red Flags and Pitfalls

• Unrealistic volume targets that exceed regional averages.
• Performance criteria tied to factors outside your control (e.g., referral sources, clinic staffing shortages).
• Failure to define the timeline for performance evaluation (e.g., quarterly, annually).

Related Terms

• Compensation
• Income Guarantee Agreement

FAQs

• "What happens if I fail to meet my performance target?"
  • You may lose bonuses or face salary reductions. Clarify the exact consequences before signing.
• "Can performance conditions be adjusted mid-contract?"
  • Yes, but changes should require mutual agreement and be documented in writing.
• "Are quality metrics common in performance conditions?"
  • Yes, many contracts now include quality benchmarks alongside volume goals to encourage patient care standards.

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.