Physician Recruitment Process and Compensation Overview
The Rheumatology position offers a $345,000 base salary guaranteed for up to two years, with annual production-based incentive compensation paid out in the first quarter of the following year. Production runs on a tiered wRVU model with a Tier 2 conversion rate of $69 per wRVU, which aligns with the MGMA Midwest 75th percentile rate for the specialty ($70.34). At a full ramp of approximately 10 patients per day across 4.25 clinical days per week, projected total wRVU production is approximately 5,500 wRVUs annually, with corresponding total compensation projected in the high-$300,000 range. The incoming physician inherits an established panel with active referral flow, which supports a faster ramp than a new practice would offer. The compensation structure favors steady, sustainable production aligned with the practice’s emphasis on high-quality longitudinal care.
Compensation Table
*This model includes assumed and/or estimated inputs where data was not provided. Assumptions are clearly marked. Final compensation details are to be confirmed by the employer.
| Variable |
Value |
| Clinical days per week |
4.25* (range 4 to 4.5) |
| Clinical hours per week |
34* (8 hours × 4.25 days) |
| Patients per day |
10* (target volume) |
| Weeks worked |
47* (standard PTO and CME allowance) |
| wRVU per visit |
2.74* (derived from current practice production data) |
| Conversion factor |
$69 |
| Base salary |
$345,000 |
| Incentive threshold |
5,000* ($345,000 ÷ $69) |
| Bonus structure |
Tiered wRVU production, paid annually in Q1 following year |
| Guarantee length |
2 years |
Production Calculations
| Calculation |
Result |
| Annual Visits = 4.25* × 10* × 47* |
1,998* |
| Total wRVUs = 1,998* × 2.74* |
5,474* |
Compensation Model
| Component |
Value |
| Base Salary |
$345,000 |
| Incentive Compensation = (5,474* − 5,000*) × $69 |
$32,706* |
| Total Compensation |
$377,706* |
Market Benchmark Comparison
MGMA specialty selected: Rheumatology. Defaulting to general specialty given no subspecialty service line or fellowship requirement beyond standard rheumatology training. Geographic region: Midwest (Pella, IA). Source: 2025 MGMA Data.
| Metric |
Calculated Value |
MGMA Midwest Percentile |
Interpretation |
| Total Compensation |
$377,706* |
Between Median ($360,155) and 75th ($497,248) |
Market-Aligned Compensation |
| Productivity (wRVUs) |
5,474* |
Between 25th (3,983) and Median (6,108) |
Below Midwest Median |
| Pay per wRVU |
$69 |
Just below 75th ($70.34) |
Highly Competitive Rate |
| Incentive Threshold |
5,000* |
Between 25th and Median |
Achievable threshold |
Three Year Projection
| Year |
Phase |
Total Compensation |
| Year 1 |
Ramp (80%* of full production, base guarantee in effect) |
$345,000 (base guarantee) |
| Year 2 |
Full Production |
$377,706* |
| Year 3 |
Post-Guarantee Growth (3%* growth applied) |
$389,037* |
Malpractice Coverage
| Item |
Value |
| Coverage Structure |
$1M/$3M* (standard Iowa hospital-employed coverage) |
| Tail Coverage |
Included* (typical for hospital-employed physicians) |
Part 2: Benefits and Additional Compensation
Pella Regional Health Center provides a hospital-employed benefits package alongside the production-based compensation outlined above. The following items supplement the financial model and are not duplicated in the proforma.
Benefits
- Health, dental, and vision insurance
- Retirement plan with employer contribution
- Paid time off and continuing medical education allowance
- Malpractice coverage with tail (modeled in Part 1)
- Life insurance and short and long-term disability
- Employee assistance program
Additional Compensation (Non-Modeled)
- Total recruitment package: Up to $100,000, combining sign-on bonus, student loan repayment, and relocation allowance based on candidate preference and negotiation