Team-Based Compensation Model Design

How We Work

Many health systems struggle with misaligned incentives between physicians and APPs working in the same practice, leading to competition over patients and access gaps. Team-based care compensation models are designed to incentivize physicians and Advanced Practice Providers (APPs) to deliver coordinated, high-quality care as a team, rather than focusing solely on individual productivity.

These models often incorporate a mix of salary, productivity-based incentives, and non-productivity metrics such as quality, patient experience, care coordination, and shared panel management . Effective team-based compensation structures require clear role definitions, shared goals, and mechanisms for measuring and rewarding collective performance, which can improve patient outcomes, provider satisfaction, and operational efficiency

Development of Team-Based Care Compensation Models

HSG supports hospitals and health systems to evaluate and develop successful models through the following steps:

• Comprehensive Assessment: HSG Advisors conducts a thorough review of current compensation structures, care delivery models, and team roles to identify opportunities for alignment and improvement.
• Stakeholder Engagement: HSG Advisors facilitates consensus-building among physicians, APPs, and leadership through surveys, interviews, and collaborative workshops to define team goals, roles, and expectations.
• Model Design and Benchmarking: HSG Advisors develops customized team-based compensation frameworks that balance salary, productivity, and non-productivity incentives, leveraging national benchmarks and best practices for interdisciplinary care.
• Financial Modeling and Impact Analysis: HSG Advisors uses proprietary analytics to model the financial and operational impact of proposed team-based compensation models, ensuring sustainability and alignment with organizational objectives.
• Implementation and Change Management: HSG Advisors supports rollout with communication strategies, provider education, and ongoing performance monitoring, including adjustments to metrics and incentives as care models evolve.
• Compliance and Documentation: HSG Advisors ensures all compensation plans meet Fair Market Value (FMV) and Commercial Reasonableness (CR) standards, providing documentation and expert opinions as needed.