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Distribution of Physician Incentive Payments


Physician Hospital Organization (“PHO”) affiliated with an independent urban hospital in the southeast


To develop a model to distribute performance-based incentive funds to applicable physicians.


Veralon drafted a model based on five key principles: Fairness, Transparency, Simplicity, Frequency of distribution, and Physician performance. These principles ensure physician support of the model, and reward performance that will lead to higher funding of the incentive pool, thereby benefiting all participants.


Veralon facilitated discussions with PHO leaders to consider options and discuss specialty-specific measures and scoring criteria. We prepared sample reports that the PHO is using to educate physicians on how the distributions would be determined. We also facilitated discussions with key physician stakeholders to obtain approval for the distribution model.