Physician compensation is the largest cost in the practice. It must be used to align physician behavior with the actions needed to make the system successful. Controlling that evolution over time is and will remain a challenge, and requires active management and physician involvement.
Tip 60: Compensation plans must reinforce the results required for success.
Your plans must evolve with the times, and increasingly we are recommending plans that focus more on quality. Balancing productivity, quality outcomes, and cost effectiveness is difficult to do without a strategy for compensation. Don’t overload it!
Tip 61: Develop a system to ensure provider contracts are within fair market value.
This is potentially a problem from a compliance and physician satisfaction perspective. Have an internal system or seek outside opinions, if needed. This reality can also help you control physician expectations.
Tip 62: Create incentive programs for all employees.
Incentivizing front office staff to fill the schedule usually works like magic. The office is busy, productivity rises, and revenue from those last few patients each day goes directly to the bottom line. Having a successful practice requires a team approach.
Tip 63: Create a consistent methodology for compensation.
Create a cohesive framework that can work across all specialties, to ease administration and create an atmosphere of fairness. At all cost, avoid varying compensation from contract to contract.
Tip 64: Ensure providers understand the behaviors required to increase compensation.
Meet with each physician to review performance and discuss expectations. Their deep understanding will help you get what you want and help the physicians meet personal objectives, once the plan is well defined and appropriately developed.
Measure each physician against expectations for interaction during the appointment and timeliness of service; incorporate these expectations in performance evaluations.
Tip 65: Ensure physicians cover their salary and benefits.
Once a physician is established (no more than two years), make sure the direct expenses are covered. If not, you should likely not renew the physician’s contract unless it is a strategic or coverage issue.
Tip 66: Physicians need a wRVU expectation.
While this is getting less weight with each passing year, it should be a core expectation. Over time, it will help you minimize the number of physicians you need to add to the mix. Shorter term, while we are still in a largely fee-for-service world, it makes good business sense.
Tip 67: Adjust pay downward if the physician is not achieving targets.
You need a system to adjust pay downward for those not meeting expectations. This system must be well understood by the physicians, and adjustments should not be a surprise.