Physician Compensation Planning & Benchmarking
Compensation and incentive design is critical to the success of physician organizations. An appropriately designed plan recognizes and incentivizes the group’s strategic direction and goals in the ever-changing healthcare market. Thus, redesign of a compensation system is required when strategies or incentives change. With 40 years of experience in designing compensation systems, we understand that compensation is personal. Our experience helps to manage a politically charged process through deep analysis, physician engagement, and regular communication.
ECG’s extensive skills in developing innovative, incentive-based physician compensation arrangements include:
- Rapid understanding of how your organization’s compensation compares to relevant industry benchmarks.
- Development of a compensation system that adjusts with the market, reducing the need for substantial redesign in the future.
- Alignment of physician incentives with organizational goals and strategic direction.
- Recruitment and retention of physicians that engender the organization’s goals and direction.
- Rewarding physicians based on their contributions to the organization.
Additionally, we have a number of proprietary research and benchmarking tools that help us anticipate trends and market movements to regularly benefit our clients.
Developing and implementing a revised compensation arrangement for a 90-physician hospital-owned cardiology and cardiothoracic and vascular surgery group practice. Expand Minimize
ECG worked with physician and health system leadership to develop a production-based com-pensation plan for an employed group of cardiovascular specialty physicians. The compensation defined mechanisms to reward physicians for individual, group, and enterprise-wide performance. Key features of the plan included modified RVUs to foster subspecialization while maintaining group cohesion and provisions to reward superior quality and other enterprise performance measures. Based on the positive outcome of the compensation planning and implementation process, ECG was engaged to further assist the organization design and implement other char-acteristics of the cardiovascular institute.
Designing and implementing are physician compensation plan for a hospital-owned 150-physician multispecialty group practice. Expand Minimize
ECG worked with hospital leadership to design and implement a compensation structure that re-sulted in increased consistency across a large multispecialty group practice and promoted greater group unity that would enable the organization to better leverage the capabilities of a mul-tispecialty group practice. Specific activities included: articulating compensation goals that aligned with organizational priorities, defining and evaluating alternative compensation structures to select a preferred approach, developing specialty-specific quality and performance measures, conducting detailed financial analyses, and specifying a transition plan. ECG was engaged to support compensation plan implementation activities.