Angie Caldwell, Consulting Principal and Office Managing Principal, Tampa; Aaron Newcomer, Consulting Manager, Atlanta; and Tommy Hernandez, Consulting Staff, Tampa, recently authored an article published by the American Association of Provider Compensation Professionals (AAPCP). The article, “Understanding Group Compensation Model Design for Hospital-Employed Physician Practices,” explains how a group compensation model can incentivize physicians to work as a team, a practice that is especially valuable as healthcare systems are experiencing reduced staffing following the COVID-19 pandemic.
The authors express that the compensation model can result in collaborative and quality patient care, enhanced engagement by the providers, and improved and sustainable processes as it distributes the workload among many physicians. They describe the benefits of group models and provide a comprehensive description of a group compensation model design.
In the article, Caldwell, Newcomer, and Hernandez state:
“As reimbursement continues to shift from fee-for-service to value-based with increasing pressure from public and private payers to participate in alternative payment models, hospitals should consider value-based compensation methodologies to align the risk and reward of the funds received for patient care. Linking compensation to the achievement of aggregate quality measures can incent providers to meet metrics at the payer and hospital levels that take a care team to achieve.”
The full article was published in the August 9, 2023, issue of the AAPCP Bulletin, where it is available to AAPCP members and subscribers. View a PDF of the article. This is the second in a series of articles related to physician compensation design published in the bulletin. The first article, “Playing Offense: Using Compensation Design and Strategy to Retain Hospital-Employed Primary Care Physicians,” was published in May 2023.
The AAPCP is the largest nonprofit organization in the country devoted to provider compensation, contracting, and alignment. The organization’s members advise and lead organizations on provider compensation, contracting, planning, recruitment, retention, strategy, and valuation.
For additional guidance related to provider compensation design or any matter related to fair market value compensation, valuation, compliance, or strategy and integration, one of our executive contacts would be happy to assist. You may email them below or call (800) 270-9629.
