- RVU (Relative Value Unit)
- A standardized measure of physician productivity used by Medicare and most commercial payers to determine reimbursement. Each CPT code carries a work RVU, practice expense RVU, and malpractice RVU. Many physician contracts tie compensation to RVU production thresholds, with bonuses above a defined baseline.
- Compensation Formula
- The contractual method used to calculate physician pay. Common models include guaranteed salary, eat-what-you-kill (collections-based), salary plus production bonus (RVU or collections above a threshold), and equal-share partnership distributions. The formula directly affects income stability, upside potential, and alignment with practice goals.
- Partnership Buy-In
- The purchase of an ownership stake in a physician practice entity, typically offered after an associate track of 2 to 5 years. The buy-in price is calculated using business valuation, a multiple of earnings, or a formula tied to practice receivables. True equity buy-ins include voting rights and profit distributions.
- Without-Cause Termination
- A contract clause that allows either party to end the employment agreement without stating a reason, typically with 60 to 120 days written notice. The notice period, post-termination obligations (non-compete activation, tail insurance responsibility), and severance terms are negotiable. Shorter notice periods favor the employer.
- Call Coverage
- The obligation to provide after-hours or weekend coverage for patient emergencies. Contracts should specify call frequency (1 in 4, 1 in 6, etc.), whether call is compensated separately, and whether the physician takes call from home or in-house. Unrestricted call obligations are a common source of physician burnout.
- Neurosurgery Malpractice Premium
- Malpractice insurance premiums for neurosurgeons are among the highest in medicine due to the severity of potential adverse outcomes. Annual premiums typically range from $100,000 to $300,000+ depending on state, subspecialty focus, and claims history. Spine surgery carries higher premiums than cranial surgery in most states.
- Spine Surgery ASC
- An ambulatory surgery center specializing in spine procedures (microdiscectomy, laminectomy, fusion). Physician ownership of a spine ASC generates facility fees for procedures that would otherwise generate facility revenue for the hospital. Among the highest-revenue ASC types when case mix includes commercial payers.