Associate comp models - The Practice Owner's Guide

The models

Model	How it works	Trade-off
Salary / per-diem	Fixed pay	Predictable for both sides; no upside, so strong producers leave
% of production	Pay on work billed	Rewards output, but you carry collection risk on their work
% of collections	Pay on cash received	Aligns with reality; associate inherits your billing quality, expect questions about your denial rate
Base + threshold bonus	Guaranteed floor, % above a production threshold	The common compromise, especially year one

Typical percentages run ~25-35% in dental and vary widely by medical specialty; daily-rate floors are standard for new grads. Whatever the model, define the base precisely: gross vs. net of lab fees, refunds, and adjustments. Most comp disputes are definition disputes.

The terms that matter as much

Who pays the malpractice tail on exit (decide at signing), restrictive covenants sized to survive your state’s current non-compete rules, patient records and follow-up duties on departure, CE/license/DEA allowances, and the path to partnership if there is one, with the valuation method named now (ownership paperwork). Classification first, though: most associates are W-2, not 1099.

​The models

​The terms that matter as much

​Related

The models

The terms that matter as much

Related