Physician Compensation Models

Comprehensive Physician Compensation Models

Because the medical industry is changing, old compensation systems may no longer be viable. An example would be the service area where capitation is growing. As such, practices may need help revising their current compensation systems or developing new systems. Also, governmental regulations, such as the Stark laws, often require changes to current physician compensation systems.

An effective physician compensation plan encourages physicians to share resources and work together as a team. It influences and directs behavior when a practice faces challenges such as changes in reimbursement, more regulation, and increased costs. It contributes to overall practice success. To realize these benefits, however, the design of a successful physician compensation model requires buy-in from the entire physician group.

My compensation services will analyze your group’s current compensation formulary and redesign it to fix any inequities and correct any losses. The result is an enhanced physician compensation plan that not only satisfies your key physicians, but improves your bottom line. These services include the following:

  • Data review: How do your physicians compare to your peers in terms of physician productivity and compensation?
  • Strategy development: What are you trying to achieve? What are your organizational goals? All leader physicians, if not all physicians, will need to agree on the organizational strategies.
  • Get Physician input (in-depth interviews of all affected physicians): What works today? What does not work? Answers will help craft solutions.
  • Modeling: How is each physician affected financially by changes to the plan? What behaviors will need to occur to achieve a successful outcome for each individual physician?
  • Timing of Change: Dual tracking, delayed implementation, and continued revisions can make implementation easier for the group and ensure a successful outcome.
Physician Compensation Models FAQs

An effective physician compensation model encourages teamwork, aligns incentives with organizational goals, and contributes to the overall success of the practice. It helps direct physician behavior in a positive way as the medical industry evolves with changes in reimbursement, regulation, and costs. 

Key steps include data review to benchmark against peers, developing an agreed-upon strategy with physician input, modeling how changes will impact each physician financially, and careful planning around the timing and rollout of the new compensation plan.

As a compensation consultant, I provide an objective third-party analysis of your current model, identify potential inequities or misalignments, and redesign the plan to satisfy physicians in your practice while improving profitability. Additionally, I can facilitate the process of getting physician buy-in on goals and strategies– a key element of a well-run medical practice. 

Questions about Physician Compensation Models?

I encourage any questions you may have about physician compensation models. Call me anytime at 281-379-5988, submit a form online, or email me directly at