Good compensation plans at hospital-owned physician practices have an adequate mix of individual- and team-oriented factors, according to an article from Integrated Healthcare Strategies.
Transitioning from fee-for-service to value-based compensation requires many hospitals and hospital groups today to form hybrid plans. Compensation based solely on individual goals (e.g., relative value units, collections, etc.) do not entirely overlap with plans that include team-based incentives.
Here are three common areas of hospital-owned group compensation plans and how much emphasis each area typically warrants, according to the article:
• Individual production (wRVUs or collective revenues): 70 percent
• Individual performance (quality, safety, patient satisfaction, efficiency): 10 percent
• Team/organizational performance (profitability, quality, safety, patient satisfaction, efficiency): 20 percent
"In a very individualistic organization — like most hospital-owned groups today — it is important to avoid the sudden shock of a rapid transition away from individual performance to organizational performance," wrote William Jessee, MD, senior vice president at Integrated Healthcare Strategies. "Careful management of that transition can be the key to establishing the new culture that will be essential to success in a valued-based payment environment."
Transitioning from fee-for-service to value-based compensation requires many hospitals and hospital groups today to form hybrid plans. Compensation based solely on individual goals (e.g., relative value units, collections, etc.) do not entirely overlap with plans that include team-based incentives.
Here are three common areas of hospital-owned group compensation plans and how much emphasis each area typically warrants, according to the article:
• Individual production (wRVUs or collective revenues): 70 percent
• Individual performance (quality, safety, patient satisfaction, efficiency): 10 percent
• Team/organizational performance (profitability, quality, safety, patient satisfaction, efficiency): 20 percent
"In a very individualistic organization — like most hospital-owned groups today — it is important to avoid the sudden shock of a rapid transition away from individual performance to organizational performance," wrote William Jessee, MD, senior vice president at Integrated Healthcare Strategies. "Careful management of that transition can be the key to establishing the new culture that will be essential to success in a valued-based payment environment."
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