Physician Compensation

New rule changes may disrupt wRVU credit, physician and APP compensation, and overall revenue generated for hospitals and healthcare systems.

Organizations should shortly transition to using wRVUs from the current CMS Physician Fee Schedule for provider compensation.

Health systems and their associated employed provider networks are beset with immediate financial losses, and future financial uncertainty as elective care was essentially eliminated by the COVID-19 (coronavirus) pandemic in the United States.

Hospitals and health systems have increasingly employed physicians rather than physicians owning their own practice, which has caused a fundamental shift.

Selecting the best physician compensation model for your organization is truly a journey, with progressive gains and beneficial outcomes.

promoting a team-based culture will lead employed networks to pursue non-productivity incentives within the physician compensation model.

Small changes to wRVU rates have a big impact on providers’ paychecks, organizations’ income statements, and potential compliance risks.

In this white paper, we introduce the concept of an evolving employed provider compensation plan as well as best practices for its strategy, design, and implementation.

As depicted in the graph below, HSG believes that all hospital-owed physician networks progress along an evolutionary path, from “Novice” to “High-Performing”, with most struggling to emerge from Operational Chaos. HSG’s HFMA webinar on April 20, 2017, (click here to view) took a broad look at performance improvement and, specifically, a process to discover operational […]