ECG partnered with one of the largest health systems in the Midwest to redesign its physician compensation strategy, processes and procedures for compensation administration, and the way physicians are contracted for services.
The Midwest health system comprised almost 12,000 employed and affiliated providers, 20-plus hospital locations, more than 300 ambulatory sites, and nearly $15 billion in annual net revenues. The organization was experiencing significant issues with physician satisfaction and retention, operational inefficiencies, and compliance concerns, all related to the structure and execution of its financial arrangements.
The major cause of physician dissatisfaction stemmed from inefficiencies in processes that, on the surface, should have been straightforward. Physicians had to wait 6 to 14 months to receive their productivity incentives. Lack of timely productivity-based salary adjustments had resulted in the health system being out of compliance with contracts and compensation plans. The absence of a standardized contracting process and compensation plans led to ad hoc arrangements being used to address physician relations, caused disruptions in business planning, hampered physician recruitment efforts, and reduced nonclinical staff productivity.
A band-aid solution approach only compounded these issues over time and increased the utilization of contingent or locums hiring, which presented financial challenges. Additionally, the abundance of administrative, research, teaching, and strategic (ARTS) roles intensified the challenges faced by the health system.Physician Contracting Operations
