Achieving Strategy-Aligned Clinician Compensation

Implementing Progressive, Financially Sound Clinician Incentives

Bring your group's physician compensation up to speed with system-wide goals by refining productivity incentives and incorporating non-productivity incentives—such as quality, patient satisfaction, and access—into your group's compensation strategy.

Rivka Friedman, Anita Joseph, and Braden Lang

Providers Operating in Two Worlds

Value-based care may be coming down the pike, but quality, patient experience, and utilization reduction still account for a modest portion of most medical groups' reimbursement. In other words, groups must operate in both a fee-for-service and value-based world.

The challenge for today's medical group executive is to craft clinician compensation that accomplishes two goals:

  • Encourage efficiency and production, at both the individual and group level
  • Reflect value-based system goals, such as increased quality, access, and patient satisfaction

Want more on this topic? Check out Analyzing Compensation at Fair Market Value

Refining Productivity Incentives

Medical groups who heavily compensate non-productivity metrics will face a mismatch between revenue accumulated and compensation owed. Group executives should prioritize productivity-based compensation, whether through a net collections or an RVU-based production model.

The net collections model offers the most short-term financial security for the medical group and system, but it also comes with drawbacks. For example, some groups have reported dips in physician engagement after implementing this model.

Using an RVU-based production model, group leaders have more flexibility to adjust specilaty-specific compensation. However, this places a heavier budgeting and financial modeling burden on group leadership.

The first chapter of this white paper outlines each model's advantages, disadvantages, and the situations in which each works best. It also offers guidance for adapting productivity payments to account for your group's current needs.

Incorporating Non-Productivity Incentives

Productivity incentives are an absolute necessity, but they are no longer sufficient. Executives must ensure that physicians are incentivized to grow panel size and expand patient access to high-quality, cost-effective care that satisfies patients.

While there is no standard answer to non-productivity compensation design, our second chapter helps you navigate the process.

Some of the concrete strategies you'll find include how to:

  • Align metric selection with system priorities
  • Select metrics backed by strong, clear, and reliable data
  • Develop thresholds that encourage and reward best-in-class performance
  • Choose appropriate quality metrics by seeking specialty-specific physician input
  • Stage implementation of patient access metrics, such as supervising advanced practitioners or building a base of e-visit patients

Download the White Paper to Learn More

Medical group executives should maintain robust productivity incentives while carefully selecting and staging implementation of non-productivity incentives. Access the full publication for guidance on how to:

  • Choose between a net collections and an RVU-based compensation model
  • Compensate non-clinical tasks
  • Adapt productivity payments to account for current needs
  • Develop non-productivity incentives that align with value-based system goals

You'll also find more than 12 case studies of organizations doing this in a financially sustainable way.

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