Overview
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
Subservices
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
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Dr. McWilliams Medscape Interview – COVID-19 and Physician Income
How much income will physicians lose this year? With no sign yet that COVID-19 is under control, no one is knows the ultimate impact on physician income.
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Dr. McWilliams Medscape Interview – What Will Happen to Physician Income?
Physicians have gotten the first hints of how much income they could lose in the COVID-19 crisis. Learn more about the COVID-19 impact on physician income.
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Modern Healthcare – Focus on Employed Physician Networks, Not Hospitals, to Succeed
Health systems must focus on physician networks and work tightly with the employed network to manage and rationalize care across the continuum.