Setting Fees - Physician Contract Glossary

Setting Fees

Definition

Defines how your employer establishes billing rates for services you provide.

Examples in Context

“The employer reserves the right to determine fee schedules for all physician services, including evaluation, treatment, and diagnostic procedures, at its sole discretion.”

“All fees for patient services provided by the physician will be established by the employer in accordance with Medicare and commercial insurance fee schedules.”

Implications for Physicians

• Directly impacts your earnings in collections-based compensation models.
• May limit your ability to offer discounts or waive fees for patients with financial hardship.
• Uncontrolled fee adjustments may reduce your bonus potential if tied to net collections.

Negotiation Tips

• Request that fees align with regional or specialty benchmarks to ensure competitiveness.
• Ask for written notice of any planned changes to the fee schedule that could affect your earnings.
• Clarify whether you have input on the fees if your income is tied to productivity or collections.

Red Flags and Pitfalls

• Contracts that allow the employer to adjust fees without notice may unexpectedly reduce your pay.
• Undefined language may restrict you from independently adjusting fees for self-pay or uninsured patients.

Related Terms

• Collections-Based Pay
• Compensation Models

FAQs

• “Can I set my own rates for cash-paying patients?”
  • In most cases, no. Employers typically control fee schedules, even for cash services.
• “How can I ensure my pay isn’t reduced due to fee changes?”
  • Request a provision requiring written notice and a grace period before fee adjustments take effect.
• “Can I negotiate higher fees for complex services?”
  • Yes. If your specialty involves complex or high-risk procedures, negotiating higher fee rates may be possible.

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.