Strategy-Aligned Physician Compensation Plans
Maximizing Returns from Employed Physician Practices through Incentive Design
Topics: Hospital-Physician Alignment, Physician Issues, Employment, Compensation, Labor Expense, Workforce, Compensation, Labor Expense, Finance, Practice Management, Incentives, Performance Management
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Hospitals looking to integrate physicians more smoothly into their services often run into a variety of stumbling blocks. This study offers a number of best practices to help hospitals align the goals of the physician with the goals of the institution by:
- Improving service line performance compensation through an emphasis on enfranchisement and properly-designed incentives
- Improving patient access and lower hospital costs through streamlining operational processes
- Designing rewards to incentivize business development and clinical outcomes
Executive Summary
Strategy-Aligned Physician Compensation Plans presents a framework for utilizing the flexibility of the employment contract to balance rewards for production and activities and contributions which hospitals typically cannot or do not recognize with independent physicians. The key insight from this research is that employment is most likely to succeed in advancing the strategic goals that often animate the decision to employ when compensation plans offer physicians targeted incentives to contribute to achieving those goals. This study highlights the most progressive case studies of organizations utilizing compensation design in creative ways.
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