Some incentive arrangements are based on the achievement of reaching a certain dollar amount of collections and then paying a percentage of receipts thereafter. For example, one position that has inpatient and outpatient work pays a salary for the inpatient work but for the outpatient work has an incentive formula based on productivity where during the first $50,000 in collections, the practice pays 50%. Then for the collections over $50,000, the practice pays 65%. Another example is an interventional practice that pays a doctor 5% of his/her collections exceeding $750,000 during the first and second years, and 10% of collections exceeding $750,000 during the third year. These examples demonstrate the difference in incentive arrangements based on the type of services provided.
