« Cases

Providing Incentives for Quality Outcomes in Compensation Design


A network of employed primary care and specialty physicians associated with an academic medical center health system


To revise the current compensation model to increase emphasis on accountability for quality outcomes.


Working with physician group leaders, Veralon identified goals and priorities to be addressed in a new compensation plan. We conducted a regional survey on quality and compensation trends to suggest approaches that would put the client at the forefront in quality. This work was the basis for a compensation plan which emphasized quality while maintaining productivity goals.


After gaining buy-in on the plan, we assisted the client with implementation. Veralon simulated compensation under the proposed quality- focused model, and compared it to historical compensation. We showed the financial results under various scenarios and adjusted outcomes based on current quality performance.

The client is currently implementing this compensation model with primary care physicians and will evaluate whether to expand the model to include specialists in the future.