In the world of healthcare, there are a slew of examples for hospitals to assess their physician compensation plans.
Tony Kouba, senior consultant of physician services at Integrated Healthcare Strategies, listed four "high-level" snapshots of physician compensation plans in a recent article from what IHS has seen in the national market.
1. Hospital-employed physician A. The first type of hospital-employed physicians IHS has seen involves new recruits who may be given two-year income guarantees. They are considered to be strategically important to the hospital, such as service line directors who are responsible for developing a program. Usually, their production is lower as they focus on program growth, and compensation is higher.
2. Hospital-employed physician B. A second type of hospital-employed physician is one who works at a hospital with an unfavorable payor mix. Usually, these physicians produce at a high level, but they have outdated compensation models and poorly developed quality and performance incentives with the hospital.
3. Independent practice physician A. Independent physicians with a favorable payor mix, favorable reimbursement rates, ancillary income and efficient practice operations are few and far between these days, but they are some of the highest compensated physicians in the field.
4. Independent practice physician B. Conversely, some of the lowest-paid physicians are those who are unable to recruit new physicians into their practices, have an unfavorable payor mix, have no ancillary income — but are in the 80th percentile of production.
Tony Kouba, senior consultant of physician services at Integrated Healthcare Strategies, listed four "high-level" snapshots of physician compensation plans in a recent article from what IHS has seen in the national market.
1. Hospital-employed physician A. The first type of hospital-employed physicians IHS has seen involves new recruits who may be given two-year income guarantees. They are considered to be strategically important to the hospital, such as service line directors who are responsible for developing a program. Usually, their production is lower as they focus on program growth, and compensation is higher.
2. Hospital-employed physician B. A second type of hospital-employed physician is one who works at a hospital with an unfavorable payor mix. Usually, these physicians produce at a high level, but they have outdated compensation models and poorly developed quality and performance incentives with the hospital.
3. Independent practice physician A. Independent physicians with a favorable payor mix, favorable reimbursement rates, ancillary income and efficient practice operations are few and far between these days, but they are some of the highest compensated physicians in the field.
4. Independent practice physician B. Conversely, some of the lowest-paid physicians are those who are unable to recruit new physicians into their practices, have an unfavorable payor mix, have no ancillary income — but are in the 80th percentile of production.
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