Physician Compensation Model Tool for Change

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Physician Compensation Model Tool for Change

• 10th Annual Region IX
• Management Training Conference
• November 7, 2003
• Presented By
• Matthew M. King, MD
• Medical Director
• Clinica Adelante, Inc.

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Struggling vs Model CHCsWhats the differences?

• Cohesive, Experienced Management
• Shared Vision
• Tend to be Larger in Size
• Medical Director Active Administratively
• Sound Business Principles
• Emphasis on Quality
• Excellent Salaries and Benefits
• Know How to Find the

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Emerging Clinics

• How do struggling clinics make the transition?

Just C H A N G E!!
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Physician Incentives Are Your Most Powerful Tool
For Change

• Traditionally Cited Benefits of Physician
  Incentive Plans
• Increased Productivity
• Improved Retention and Recruitment
• More Competitive Salaries

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Other (less obvious) Benefits

• Aligns Clinical and Administrative Objectives
• Incentives must be chosen, expressed clearly and
  the results accurately captured.
• Forces Administrative Excellence
• Must prioritize clinic objectives
• Must capture important data accurately, quickly
  and on an ongoing basis.
• Reconnects the administration with the clinical
  operations

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Other Benefits (continued)

• Mandates Clinic Reengineering
• Clinicians expect enough patients to make their
  bonuses resulting in a focus on customer service,
  improved physician support and improved
  processes.
• Clinical objectives usually include quality.
• Results in Improved Infrastructure
• Accurate data capture assumes a greater
  importance.

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Original Homegrown Physician Incentive Plan
Notes OK to Bonus with Encounters, RVUs, or
Both. Bonuses are paid monthly.
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Salary Information for Arizona CHC Clinicians
Family Practice Salary Standards
Low High Average 109,990
168,000 122,268
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New Homegrown Physician Incentive Plan
Notes Base numbers are not clinic expectations
but numbers to base bonus productivity
calculations from. ALL Providers are expected to
make bonuses. Quality Bonus are not awarded
unless a productivity bonus is earned. All
productivity bonuses are 3, 10 or 20 of Base
Number either Encounter or RVUs
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New Homegrown Physician Incentive Plan
(continued)
Notes Quality Indicators (QI) will usually be
at least 6 months duration but may be changed
every 2 months. Any anticipated changes will be
announced no less than 2 months before first
pay-outs. QIs may be provider specific, site
specific, global or specialty specific. They may
also be based on customer service, patient
satisfaction surveys, clinic or community service
parameters or other qualitative measures A single
QI may be a group of related data or a single
parameter. Each Bonus Level will have criteria in
addition to the criteria expected on the previous
Bonus Level.
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Results of Our Incentive Efforts

• Purchased an EMR to accurately capture data at
  point of service.
• Formed a reengineering team to improve custom
  service, minimize system errors and build quality
  into our routines.
• Continued excellent productivity
• Improved communication and alignment between
  administration and clinical staff.

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JUST DO IT!
Get Smart . . . Get Started

• Start Small and Build Slowly

• Dont Wait for Everything to be Right

• You Dont Need Consensus to Move Forward

• Leave Yourself a Way Out