| Strategies for Improving Physician Productivity: Greater Compensation Incentives |
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As we work with private practices and hospital networks across the country, we find an underlying need to improve productivity. Often, productivity is influenced best by a well-planned physician (or provider) compensation plan. The most influential plans are those that are incentive-based, fair, and equitable, where the possibilities of earning a bonus are realistic. At the same time, a significant portion of their compensation depends upon an acceptable level of productivity. There are many methodologies for creating productivity incentives for physicians through a productivity-based model. We will examine some models in this and future newsletters, presenting the pros and cons of each. The first consideration for evaluating a productivity-based model is to define productivity measures. Following are various starting points for measuring productivity:
Regardless of the methodology applied, the key is to establish standards and attach those standards and thresholds of productivity to a fixed compensation total. Providers become eligible for bonus dollars as they achieve that compensation total. (Establishing a guaranteed or base salary is optional; even the base salary could depend upon a derivative of productivity. For example, X number of RVUs equals Y amount of compensation.) Measuring productivity and tying it to provider compensation is essential to optimizing performance—for the private single or multi-specialty group as well as the hospital network. For additional information on improving productivity through compensation incentives, contact Department B at 1-877-77-DEPTB or email |
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