There are a number of common beliefs about setting physician compensation that are pervasive. When closely examined, they turn out to be untrue. Once you know the facts, you can do a better job of establishing appropriate compensation structures and levels. Contact the Authors: Karin Chernoff Kaplan, Director, kkaplan@veralon.com Richard Chasinoff, Principal, rchasinoff@veralon.com
As hospitals and health systems navigate a tumultuous economic environment following the COVID-19 outbreak, the need for standardized, value-based physician compensation plans has intensified. Even before the coronavirus pandemic, the median operating loss per health system-employed physician continues to be staggering. Many factors contribute to financial losses on employed physicians – costs related to physician […]
Physician compensation plans have generally been designed to meet specific health system objectives including: Optimizing recruitment and retention Aligning physician financial incentives with organization goals around quality, productivity, citizenship Promoting consistency and equity among physicians Most compensation models reflect expectations with respect to production, quality, and time worked, and target expected levels of compensation based […]
The Blanket Waivers that CMS issued on sanctions under the physician self-referral law (Stark) do not halt application of the law during this emergency time period. Instead, they waive sanctions for certain circumstances that would otherwise violate the self-referral law. The 18 individual waivers address a variety of financial arrangements between physicians and designated health […]
The move toward value-based contracts is happening “in small doses,” a 2018 MGMA survey found. While nearly three out of five hospitals participate in value-based contracts, just 34 percent of healthcare reimbursement is tied to value. This presents healthcare leaders with a dilemma: How can we engage physicians in value-based payment models when so little […]
Although a determination of fair market value (FMV) depends on the relevant facts and circumstances related to a particular arrangement, reasonable compensation is generally defined as the level of compensation that is consistent with the amount that would be paid by like organizations for comparable services under similar circumstances. Physicians who provide administrative services must […]
Compensation is often a make-or-break deal point in a hospital’s acquisition of a physician practice. Prospective physician employees will naturally compare what they will earn post-acquisition to what they currently earn as practice owners, partners, or employees. From the hospital employer’s perspective, discussions around physician compensation provide important opportunities to win physicians over and to […]
Many hospitals are finding themselves in discussions with physician specialists regarding compensation for emergency department (ED) call coverage. An increasing number of physicians are paid for this coverage, and information on these payments is becoming more widely available to physicians in the form of published surveys and conversations with fellow physicians. While healthcare finance leaders […]
Physician employment agreements now commonly include compensation for services beyond basic clinical services; they may also provide compensation for medical directorships, teaching, on-call payments, and so on. We have found that physicians transitioning to hospital employment are generally accepting of clinical compensation models that include a base salary coupled with productivity and quality incentives. However, […]
Can your physicians easily project their compensation for the next year with reasonable accuracy, or do they need to have their accountants build elaborate Excel models to do so? Many hospitals and medical practices have made their physician compensation plans more intricate as healthcare has become more complex. However, compensation plans that are too complicated […]