Four words sum up physician administrator incentive plans: To each its own

From the Medical Group Management Association:

Although 73.2 percent of medical practices that responded to an informal questionnaire reported that they have administrator incentive plans, the types of incentives varied significantly. According to the MGMA Information Exchange “Administrator Incentive Plans”:

• 51.2 percent offer a bonus based on practice profit;
  
• 47.9 percent offer a raise based on merit;
• 45.5 percent offer a discretionary cash award for exemplary performance;
• 36.4 percent offer profit sharing; and
• 4.1 percent offer a discretionary noncash award for exemplary performance.

The MGMA Information Exchanges depend on voluntary participation and may not be representative of the industry. Readers are urged to review the entire questionnaire report when making conclusions regarding trends or other observations.

Purchase “Administrator Incentive Plans.” from the MGMA.

About the Author

Reed Tinsley CPA

This article is written by Reed Tinsley, a Houston, TX-based CPA with over 30 years of experience advising physicians and medical practices across Texas and the United States. Reed holds certifications as a Certified Valuation Analyst (CVA), Certified Healthcare Business Consultant (CHBC), and Certified Financial Planner (CFP), specializing exclusively in the healthcare sector. He is a published author, nationally recognized speaker, and trusted advisor to physicians on accounting & tax, practice management, and financial planning. Schedule a Free Consultation.