- Revising compensation arrangements for an 88-physician independent multispecialty medical group.
ECG assisted a physician steering committee in designing
a revised compensation plan for an 85-member multispecialty group. Tasks included comparing
group compensation and productivity to industry benchmarks on national, regional, and local
levels; interviewing and surveying group physicians to gain perspective on plan issues; and
conducting educational workshops with clinic shareholders. The resulting production-based
plan was approved by 88 percent of the shareholders.
- Rationalizing and consolidating compensation plans across a diverse health system-owned physician network.
ECG assisted a 150-physician primary care group in consolidating
five different compensation systems to establish common incentives for all group physicians. We
worked closely with a physician steering committee in all phases, from determining objectives through
plan implementation. The plan resulted in an RVU-based productivity-oriented compensation system
that also incorporated incentives for quality management.
- Designing, assessing, and benchmarking alternative compensation plans for a 150-physician group practice.
ECG assisted in determining the financial impacts of an alternative
compensation plan(s) on a 150-physician multispecialty group. The project scope included coordinating
with the medical group staff to define data requirements for developing the financial model, compiling current
regional and national averages for physician salary and production levels, developing a compensation financial
model that compares the medical group’s current gross revenue and salary statistics to relevant industry medians,
and assessing the revised compensation plan’s financial impact to the organization as a whole. The existing
compensation plan was revised to include a productivity-based incentive that would enhance the financial
performance of the physicians and clinic.
- Designing physician compensation and incentive arrangements for a complex integrated delivery system.
We developed the financial arrangements and physician compensation
plan for a new corporation that integrates two hospitals – a regional medical center and a local, affiliated
hospital – with 10 affiliated physician corporations. The resulting financial structure and compensation
plan provide links between physician compensation and both unit-specific and aggregate corporate financial
performance, achieving full incorporation of physicians into the managerial and fiscal accountability of
the newly integrated system. This engagement involved application of the organization’s integration
strategy to the financial and compensation arrangements to achieve congruence among the system’s financial
objectives, as well as those of the hospital, physicians, and employees. The results of this engagement
included a comprehensive financial and compensation strategy that was endorsed by the physicians and the two
hospitals. The financial strategy complements the newly conceived integrated health system and
fosters alignment of individual, department, and institutional objectives.
- Developing revised compensation arrangements for a 250-physician pediatric subspecialty practice.
We assisted a 250-physician multisite pediatric subspecialty
practice with development of a physician compensation plan, which was designed to align the financial
incentives of the physicians and the clinic. Major tasks included designing a funds flow arrangement,
developing a compensation plan that achieves the clinic’s objectives, projecting financial implications,
and developing the transition plan. The project resulted in a plan that consists of a base salary
component and an incentive component based on production.
