Can a Nurse Practitioner Act as an Attending at a Nonskilled Nursing Facility?

Carolyn Buppert, NP, JD


March 08, 2006


How common is a cap on a productivity bonus? My contract has a $10,000 annual cap and I would like to have it removed.

Response From the Expert


Carolyn Buppert, NP, JD 
Attorney, Private Practice, Annapolis, Maryland




I have no survey data on productivity bonuses, so I cannot comment in a scientific way. However, I often draft or review nurse practitioner (NP) employment contracts for physician practices. Bonuses, while not the norm, are included in about a quarter of the contracts. Occasionally, the employer caps the amount an NP can receive.

Caps on productivity bonuses don't make much sense if the goal is to motivate the NP to generate revenue. But practices might base bonuses on a variety of other factors, such as quality of care, or performance on certain nonmonetary measures such as cooperation and teamwork. There is no legal necessity for a cap. Business reasons for capping bonus potential might include the necessity for making the bonus amount a known quantity for budgeting purposes or simply enabling the practice owners to keep more of what a productive employee generates.

Like any other term of a contract, a productivity bonus and a cap on a productivity bonus are negotiable. What is the best way to get rid of a cap on a productivity bonus? Simply ask that it be removed.

Related Resource

Billing For Nurse Practitioner Services -- Update 2005: Guidelines for NPs, Physicians, Employers, and Insurers


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