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Developing a Comprehensive Physician Compensation Program for a Large Physician Enterprise


Multi-site community hospital with over 150 employed physicians across many specialties


To assist the hospital in developing a compensation plan that rewards clinical productivity as well as administrative, service, and teaching (AS&T) effort and that accommodates a variety of physician practice settings (clinic vs. private practice type setting) and specialties.


Veralon conducted interviews and discussions with representative stakeholders to understand the various compensation models in place, their limitations and desired improvements in future models.


Pairing these findings with an extensive analysis of current compensation and productivity levels, Veralon proposed a new compensation model, with a transition plan for all employed physicians. This model compensates and protects AS&T effort based on time, level of experience, and seniority. Clinical compensation is based purely on productivity and payout ratios are based on national benchmarks as well as regional benchmarks from Veralon’s proprietary regional survey.

The proposed model streamlines compensation across all departments, ensures fairness and increases transparency by virtue of its simplicity.