Overview
Health systems are facing growing pressure to balance financial sustainability with provider retention and performance, amid at evolving reimbursement models and competitive labor markets.
Common Challenges
- Modernizing compensation structures to align with organizational goals, regulatory requirements, and market realities.
- Addressing misalignment between compensation incentives and system priorities.
- Managing inefficiencies and resource strain caused by outdated strategies.
- Reducing provider dissatisfaction and turnover linked to unclear or inconsistent compensation models.
Key Solution Benefits
HSG’s Provider Compensation & Compliance solution helps hospitals and health systems design data-driven compensation models that align with goals, ensure financial sustainability, and support long-term success through advisory experience and proprietary analytics.
- Align Compensation with Strategic and Cultural Objectives: Ensure that provider incentives reinforce the health system’s mission, values, and strategic priorities, fostering alignment across clinical and operational teams.
- Promote Financial Sustainability: Model the financial impact of compensation structures and develop scalable, adaptable frameworks that support growth while maintaining fiscal responsibility.
- Support Provider Satisfaction and Retention: Design transparent, equitable, and performance-linked compensation plans that enhance provider engagement, reduce turnover, and improve workforce stability.
- Ensure Regulatory Compliance: Incorporate Fair Market Value (FMV) and Commercial Reasonableness (CR) standards into compensation design and documentation to mitigate legal and compliance risks.
- Facilitate Transition to Value-Based Care: Integrate non-productivity incentives that encourage quality, efficiency, and patient-centered care, aligning provider behavior with evolving payer expectations.
By leveraging deep industry expertise and advanced analytics, HSG Advisors helps health systems build compensation strategies that are compliant, competitive, and strategically aligned—positioning organizations for success in both fee-for-service and value-based environments.
Strategic Service Offerings
Tailored solutions that transform your strategic goals into actionable outcomes.
Team-Based Compensation Model Design
Design and implement team-based care compensation models for physicians and APPs through comprehensive assessment, stakeholder engagement, customized model design, financial impact analysis, implementation support, and compliance documentation to drive collaborative, high-quality care delivery.
employed provider compensation model design and implementation
Experience a structured, consensus-driven compensation plan redesign process—covering discovery, development, implementation, and ongoing support—to ensure provider compensation is market competitive, financially sustainable, compliant, and strategically aligned with organizational goals.
Fair market value and commercial reasonableness
Feel confident in your Fair Market Value and Commercial Reasonableness solutions; leverage senior-level expertise and a full suite of services to ensure every provider compensation arrangement is compliant, defensible, and tailored to organizational goals.
compensation compliance program development
Take control of your compensation and compliance programs proactively through annual, data-driven evaluations, categorizing agreements by risk, and providing formal FMV and Commercial Reasonableness opinions and actionable recommendations to ensure defensible, compliant compensation practices.
Delivering Insights to Drive Action

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Related Resources
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The Critical Role of Employed Medical Group Productivity in Succession Planning
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Health System Medical Staff Development Planning: Improving Access, Building Provider Capabilities, and Facilitating Strategic Growth
This White Paper is a comprehensive guide of what HSG considers to be best-practice for Health System Medical Staff Development Planning.
