‘Golden Rule’ for designing your physician pay plan

Traditionally, physician compensation formulas attempted to reflect a balance between overall group strength and individual responsibility. So most plans included both productivity pay and equal pay. But life in today's group practice has grown more complicated.

Larger and more sophisticated groups demand more from individual members than simply seeing patients and performing procedures. They recognize compensable value in leadership and participation in group governance. Managed care—particularly risk-sharing and pre-paid plans—has introduced terms like "utilization," "quality," and "patient satisfaction" into the mix.

But at the end of the day, you still have the same basic issue driving your group's quest for finding what's fair: group strength versus individual contribution.

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.