When transitioning from permanent employment to contract consulting in healthcare IT you need to understand how to price yourself so that you are making a sound financial decision. In our previous SlideShare presentation we outlined three crucial mistakes that can lead to a short career in contracting, the very first being pricing and budgeting. In this post we hope to address the issue of how to calculate your rate while considering every aspect of working independently. If you have any additional questions please leave them in the comment section of our blog!

1. HOW
to
Price Yourself
For Health IT Contracting

2. As a contractor, you’re paid on an
hourly basis.
8h:00m:00s
So, the first thing you want to do is
calculate your total compensation
as an hourly rate.

3. Total Compensation
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Salary
Bonuses
Retirement
Benefits (medical, dental, vision, disability)

4. You’re not calculating what you
pay for these benefits at your
current job.
You’re calculating what you would
pay to get them on your own.

5. In order to convert your salary,
based on the typical number of
hours a contract consultant will
work in a year, divide the number
by the 1,680 hours.
(40hrs/week times 42 weeks/year)

6. So, there are three ways to accept a
contract and make sure you increase your
compensation.

7. 1. Work 40hrs/week for 42 weeks
a year with a HIGHER hourly rate
than the one you just calculated.

8. 2. Get the hourly rate you just
calculated while working 40hrs/
week for more than 42 weeks a
year.

9. 3. Get the hourly rate you just
calculated while working only 42
weeks a year but working more
than 40 hours a week.

10. However, if two or all three of the
variables above increase from what
we’ve calculated, you’ll find that, in
most cases, your income will
increase by 25% to 40%.

11. Learn More At HealthcareIS.com
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