Contract & Benefits

Physician Recruitment Process and Compensation Overview

Competitive Package Designed for Long-Term Success and Security

The compensation structure at IU Health Arnett reflects a sophisticated understanding of physician needs – combining guaranteed security during your transition period with unlimited upside potential as you build your practice. This isn't simply a salary offer; it's a comprehensive financial partnership designed to support both your immediate needs and long-term wealth building goals, allowing you to focus on patient care while building financial security for your family.

Base Compensation and Productivity Model

Your financial foundation begins with a competitive base salary of $500,000 for the first two years, providing the security you need while establishing your practice and learning the system. This guarantee period acknowledges that building relationships and developing surgical volume takes time, eliminating the financial pressure that can compromise clinical decision-making during your crucial first years.

The transition to a productivity-based model occurs after your guarantee period, with a threshold of approximately 8,741 work RVUs before productivity incentives begin. Once you exceed this threshold, you'll earn $57.20 per additional work RVU, creating unlimited earning potential based on your clinical productivity and surgical volume. Current physicians report that reaching the 75th–80th percentile of national benchmarks is easily achievable given the robust patient demand and surgical opportunities.

  • Base salary guarantee of $500,000 for first two years, regardless of productivity
  • Productivity model with competitive per-RVU rates above established thresholds
  • No ceiling on earning potential – busier physicians earn proportionally more
  • Updated compensation data using 2025 MGMA benchmarks to ensure market competitiveness
  • Transparent RVU tracking and regular productivity discussions to optimize earnings

Exceptional Sign-On Package and Retention Benefits

The $250,000 sign-on bonus demonstrates IU Health's serious commitment to attracting exceptional physicians and reflects the high value placed on ENT services in this community. This substantial bonus is structured as a five-year forgivable loan with annual forgiveness of $50,000 per year, providing both immediate financial benefit and long-term retention incentives.

The forgiveness structure means that after five years of employment, the entire $250,000 becomes yours with no repayment obligation. Should you leave before the five-year commitment period, you would only be responsible for repaying the unforgiven portion. For example, if you left after three years, you would owe $100,000 (the remaining two years of unforgiven bonus), while the $150,000 already forgiven would remain yours.

This sign-on amount represents one of the most competitive packages in the region and acknowledges both the current market demand for ENT physicians and the significant contribution you'll make to community healthcare. The five-year forgiveness period aligns with natural career planning while providing sufficient time to establish roots in the Lafayette community and build lasting relationships with patients and colleagues.

Comprehensive Benefits Package

Your benefits package adds approximately $50,000 in additional value beyond base compensation, creating a total compensation package that compares favorably with much larger metropolitan markets. The health, dental, and vision insurance options provide excellent coverage for you and your family, while the retirement benefits help build long-term wealth through both employer contributions and tax-advantaged savings opportunities.

Professional development support includes generous CME allowances, license fees, and professional dues reimbursement, ensuring you can maintain board certification and pursue continuing education without personal financial burden. The malpractice coverage provides comprehensive protection with tail coverage included, eliminating concerns about future liability exposure.

  • Comprehensive health, dental, and vision insurance with family coverage options
  • Robust 401(k) matching program building long-term retirement security
  • Full malpractice insurance coverage including tail coverage protection
  • Generous CME allowance, license fees, and professional dues covered
  • Relocation assistance to ease your transition to the Lafayette area
  • Four weeks paid time off initially, increasing with tenure

Financial Advantages of Practice Location

The Indiana location provides significant cost-of-living advantages that effectively increase your purchasing power compared to coastal markets. Your $500,000 base salary in Lafayette provides lifestyle and housing options that would require substantially higher compensation in major metropolitan areas. Combined with Indiana's favorable tax environment and lower overall living costs, your take-home income stretches considerably further.

The absence of ancillary income opportunities (hearing aid sales, in-office allergy testing) is offset by the robust base compensation and productivity potential. While some private practices generate additional revenue through these services, the streamlined focus on clinical care and surgery often results in higher physician satisfaction and more predictable income streams.

Total Compensation Potential and Market Comparison

The productivity data from current physicians demonstrates substantial earning potential beyond the base guarantee. Dr. Capero, who started at $300,000 in 2007, now earns "somewhere in the high fives" – indicating total compensation in the $590,000+ range. With his current production of 8,760 work RVUs annually at the productivity rate of $57.20 per RVU above threshold, physicians can realistically project total compensation well above the base salary.

Using Dr. Capero's actual productivity as an example: after exceeding the 8,741 RVU threshold, his additional RVUs would generate significant productivity bonuses on top of the base salary. As he notes when comparing his compensation to colleagues elsewhere, "when I talk to my friends and colleagues out in other areas, I mean, we do much better than they do from a total compensation package."

For a physician achieving similar productivity levels to current staff:

  • Base salary: $500,000
  • Productivity incentives above threshold: $50,000–$100,000+ annually
  • Total benefits value: ~$50,000
  • Total compensation potential: $600,000–$650,000+

Dr. Henson's remarkable 120th percentile productivity in a part-time role further demonstrates that high earnings are achievable for physicians who want to maximize their productivity, while the guaranteed base provides security for those preferring a more measured approach.

The flexible employment structure accommodates different practice styles and career stages. Whether you prefer to maintain steady productivity at comfortable levels or maximize earning potential through high-volume practice, the compensation model rewards your choices proportionally while maintaining the job security and benefits of employment.

This compensation package represents more than competitive market rates – it's an investment in your long-term success and a reflection of the value IU Health places on excellent ENT care in this growing community.

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