Shift in Payment Models Alters Physician Compensation

Jacqueline Fellows, for HealthLeaders Media , April 3, 2014

Kim Mobley, managing principal of SullivanCotter, said in a statement that the firm is also closely watching the correlation between patient satisfaction and compensation. "As reimbursement shifts from fee-for-service to value based, we expect to see some shifts in the balance of the compensation elements that comprise physician compensation plans," she said.

A similar survey of medical practice groups by SullivanCotter for the American Medical Group Association shows the same thing: Patient satisfaction is projected to be a part of a compensation package. The AMGA's 2012 report on compensation included multi-specialty groups, academic medical practices, and non-profit organizations. In other words, the shift in compensation models is not happening only in hospitals, but in academic settings, multi-specialty practices, health systems, and among insurers.

The finding mirrors HealthLeaders Media's research published in our November 2013 Intelligence Report, Restructuring Executive Compensation for the Shift From Volume to Value showing that more pressure is being put on C-suite level executives to meet qualitative benchmarks. For example, 65% of executives surveyed said indicated that patient satisfaction would factor into incentive payments for 2014.

Insurers in the Mix

Tying payment incentives to increases in qualitative benchmarks is nothing new to insurers, though some are aggressively expanding its base of who can participate in incentive payment arrangements.

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1 comments on "Shift in Payment Models Alters Physician Compensation"

ptkelley (4/3/2014 at 4:16 PM)
God help us all.




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