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Tying physician incentive pay to performance.

D R Bledsoe1, W B Leisy, J A Rodeghero

  • 1AHA Insurance Resource, Inc., Chicago, IL, USA.

Healthcare Financial Management : Journal of the Healthcare Financial Management Association
|November 4, 1995
PubMed
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Healthcare organizations face rising physician compensation costs. To maximize return on investment, many are linking physician pay and benefits to performance metrics, as indicated by recent surveys.

Area of Science:

  • Healthcare Management
  • Health Economics
  • Physician Compensation

Background:

  • Healthcare organizations are experiencing escalating costs associated with employing physicians.
  • Acquisitions of group practices and the provision of salaries and benefits contribute to increased physician compensation expenses.

Purpose of the Study:

  • To investigate strategies healthcare organizations employ to optimize return on investment in physician personnel.
  • To identify trends in linking physician compensation and benefits to performance.

Main Methods:

  • Analysis of data from two recent benefit and compensation surveys.
  • Review of organizational strategies for physician employment and acquisition.

Main Results:

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  • Healthcare organizations are increasingly tying physician compensation and benefits to performance outcomes.
  • This trend aims to enhance the return on investment in physician employees.

Conclusions:

  • Linking physician pay to performance is a growing strategy in healthcare organizations.
  • This approach is driven by the need to manage rising physician compensation costs effectively.