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No matter the size of organization, provider compensation is a complicated issue, encompassing issues of strategic alignment, financial sustainability, and regulatory compliance, all of which demand a coordinated, comprehensive approach from health systems and their employed networks.  As healthcare reimbursement models continue to evolve, compensation models, levels, and structures must evolve to be able to recruit and retain high quality providers in an increasingly value-based environment. 

Areas of Support 

HSG comprehensively supports health systems in all aspects of provider compensation and compliance, including:  

  • Employed Provider Compensation Philosophy and Model Development
  • Stakeholder Education on Market Trends and Compensation Methodologies  
  • Individual and Team-Based Compensation Model Development  
  • Sustainable wRVU Rate and Target Development  
  • Non-Productivity Incentive Development  
  • Financial Modeling and Impact Assessment for Model Changes  
  • Non-employed Provider Contractual Arrangements  
  • Compensation Model Implementation  
  • Compensation Compliance Program Development  
  • Fair Market Value and Commercial Reasonableness Opinion Development
  • Hospital-Based Subsidy Arrangement Assessment and Validation
  • Hospital-Based Specialty RFP Development and Execution  


HSG leverages its proprietary set of market and provider network data analytics to help our clients understand the current state of the market, build effective strategic planning initiatives, monitor performance against defined objectives over time, and reassess and reprioritize on an ongoing basis. 

Compensation Plan Redesign

Employed provider compensation continues to trend higher while reimbursement does not.  HSG partners with health systems to develop compensation philosophy and specialty-specific models that are financially sustainable yet promote retention in a competitive environment.  

Fair Market Valuation and Commercial Reasonableness

Rising provider compensation combined with increased scrutiny necessitates that a health system have a strong compliance program in place for adherence to Fair-Market-Value.  HSG’s FMV experts partner with health systems to guide compliance efforts and to develop Fair Market Value and Commercial Reasonableness opinions supporting a health system’s compensation strategy.  

Hospital-Based Subsidy Arrangements

As resources constrain and expenses rise, health systems are experiencing explosive growth in their subsidies for hospital-based specialties.  HSG works with health systems to evaluate the operational and contractual cause for subsidies and evaluate and implement action plans to reduce subsidies while maintaining patient care delivery. 

Related Resources

Neal D. Barker

Partner and Managing Director, Compensation and Compliance

Kari Craig

Senior Manager

Terrence R. McWilliams, MD, FAAFP

Chief Clinical Officer and Managing Director, Employed Provider Networks

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