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A physician incentive compensation program in a staff model HMO
D J Lipsitz1, H J Nagler, A Giannelli
1Blue Care Network-Health Central, Lansing, MI 48917.
Abstract:
A physician incentive program was developed at an established staff model HMO. Differential compensation, which augments a salary scale that reflects years of experience and service, is based on productivity and utilization of laboratory and x-ray services. Productivity is objectively measured on a relative-value-scale for time utilized for a range of types of visits. Laboratory and x-ray utilization is measured against recent historical practice patterns. A case mix adjustment stratifies for age in the adult patient encounters.