Physician compensation plans for hospital-employed physicians are always centered around "reasonableness" and fair market value, but there are some common practices hospitals can use to build up to those decisions, according to an article from Integrated Healthcare Strategies.
Instilling standard policies and procedures can help avoid any hiccups in the compensation process, and there are three main recommendations Integrated Healthcare Strategies imparts to hospitals.
• Develop and adopt organization policies on physician compensation. Hospitals should do this through the chief human resources officer, and the standard policies need to include the benchmarks to be used, the targeted percentile and the relationship to production, quality measures and patient satisfaction.
• Adjust existing compensation plans over time. Allowing physician compensation plans to stagnate ignores situations when legitimate differences arise. Physicians should always have an "equal work for equal pay" plan in place.
• Create a board physician compensation committee. Taking this step can assure there is transparent oversight of physician compensation policies and their implementation.
Instilling standard policies and procedures can help avoid any hiccups in the compensation process, and there are three main recommendations Integrated Healthcare Strategies imparts to hospitals.
• Develop and adopt organization policies on physician compensation. Hospitals should do this through the chief human resources officer, and the standard policies need to include the benchmarks to be used, the targeted percentile and the relationship to production, quality measures and patient satisfaction.
• Adjust existing compensation plans over time. Allowing physician compensation plans to stagnate ignores situations when legitimate differences arise. Physicians should always have an "equal work for equal pay" plan in place.
• Create a board physician compensation committee. Taking this step can assure there is transparent oversight of physician compensation policies and their implementation.
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