Walking Through the Minefield: Preparing for the Challenges in Implementation of a New Physician Compensation Model
As health system physician enterprises continue to expand and evolve, leadership is more than ever at a point where they need to redesign physician compensation to:
- Effectuate service line integration across large systems with many legacy physician enterprises
- Achieve strategic alignment between operations and compensation
- Ensure physician engagement and alignment
- Respond to the changes in the Medicare Physician Fee Schedule
- Accommodate new value-based reimbursement models
- Optimize physician recruitment and retention
Well-designed physician compensation plans are vital to the success of a health system’s physician enterprise, but one size does not fit all. Instead, a unified compensation structure with a common framework, supported by shared principles, that gives leaders some flexibility, is typically a more effective approach. However, even with an ideal framework, transitioning to standardized compensation models often means moving away from a myriad of existing models, side deals, and inequities.
This session will cover:
- Business and operational challenges commonly faced by health systems when migrating physicians to common compensation plans.
- Review trends in employed physician compensation design
- Discuss best practices related to contracting and renewals in the context of compensation changes
- Discuss best practices in compensation design
- Provide an overview of common challenges health systems face when migrating to a standardized compensation model
- Highlight a case study from a large system