Physician Contract Analyzer
Don't just sign. Analyze your offer against production metrics to understand your true compensation potential.
(sends these numbers to Ask; we don't keep them)
Offer Details
Production pay starts once wRVUs pass this threshold: base + (wRVUs − threshold) × conversion factor. The example default is base ÷ conversion factor (5,333), a common structure. Contracts vary: use the threshold in yours, or 0 if every wRVU is paid on top of base.
Clinical Context & Calculation Details
How to Use This Calculator
Input your offered base salary, the wRVUs you expect to produce in a year, the conversion factor (dollars per wRVU), the production threshold in your contract, and any bonuses (sign-on or quality).
The tool adds up your expected annual compensation and shows the first-year total with the sign-on bonus. To see how the total compares with your specialty, use the physician pay benchmark.
Why Doctors Need This
A high base salary might be attractive, but if the wRVU target is unattainable or the conversion factor is low, you might actually be underpaid for how hard you work.
Understanding the balance between guaranteed income and productivity incentives is critical before signing any employment agreement.
The Math Behind It
Productivity Income: max(0, wRVUs − Threshold) × Conversion Factor.
Estimated Annual Comp: Base Salary + Productivity Income + Quality Bonuses. (Sign-on bonuses are usually a one-time lump sum).
Pearls & Pitfalls
- Pearl: Always ask how your wRVUs will be tracked and when they are credited. "Billed" vs "Collected" matters immensely.
- Pitfall: Assuming a sign-on bonus is yours to keep immediately. Most have a 2-3 year vesting or payback period if you leave early.
- Pitfall: Not negotiating the conversion factor. A $2 difference per wRVU on 6,000 wRVUs is an extra $12,000 every single year.
Worked Example
The calculator's default inputs, an example offer: a $240,000 base salary, 6,000 wRVUs a year, $45 per wRVU over the threshold, a $15,000 quality bonus and a $25,000 sign-on bonus.
| Step | Calculation | Result |
|---|---|---|
| Example threshold | $240,000 base ÷ $45 per wRVU | 5,333 wRVUs |
| wRVUs over the threshold | 6,000 − 5,333 | 667 wRVUs |
| Production pay | 667 wRVUs × $45 | $30,015 |
| Estimated annual compensation | $240,000 base + $30,015 + $15,000 quality bonus | $285,015 |
| First-year total | $285,015 + $25,000 sign-on | $310,015 |
Read the contract first. The threshold here is an example: base ÷ conversion factor is a common structure, because the base salary already pays for the first 5,333 wRVUs. Contracts vary. If yours paid $45 on every wRVU on top of base (a threshold of 0), the same inputs would come to $525,000 a year, which is why the threshold matters more than any other line.
Assumptions & Sources
- Production pay = (wRVUs − threshold) × conversion factor once wRVUs pass the threshold, added to the base salary; below the threshold it is zero. The default threshold, base ÷ conversion factor, is an example of a common structure, not a market figure. Contracts vary (tiered conversion factors, quarterly reconciliation, clawbacks if production falls short of base), and those are not modeled.
- Sign-on bonus counts in year one only, and any repayment if you leave early is not modeled.
- Not included: benefits, retirement contributions, call pay, CME allowance, taxes and the value of a non-compete or tail coverage clause. The result is not compared with market data; use the pay benchmark for that.
Related Clinical Finance Tools
About the Author
Joshua Dunigan, DO | Family Medicine Resident & Founder
I'm a family medicine resident physician in Des Moines, Iowa (class of 2027). I founded MedMoneyGuide to give physicians specialty-specific financial guidance, with sources you can check.