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Using compensation to improve primary care
1Health Strategies & Solutions, Philadelphia, PA 19102, USA.
Medical Group Management Journal
|October 28, 1999
Summary
Physician compensation models increasingly link salaries to performance metrics like revenue and patient satisfaction. This case study shows how one primary care network used incentives to boost physician productivity and financial viability.
Area of Science:
- Health Economics
- Primary Care Management
- Physician Compensation
Background:
- Progressive primary care networks are linking physician salaries to performance metrics.
- Financial survival for these networks often depends on increasing productivity and reducing expenses.
Purpose of the Study:
- To illustrate how a unique incentive compensation program can target higher physician productivity.
- To demonstrate how incentivizing desirable behaviors can improve financial outcomes in primary care.
Main Methods:
- This case study examines a specific primary care network's incentive compensation program.
- The program linked physician salaries to quantifiable measures including net medical revenue, practice expenses, cost and utilization, quality of care, and patient satisfaction.
Main Results:
- The incentive program was designed to encourage higher productivity levels.
- By incentivizing specific desirable behaviors, the network aimed to improve its financial performance.
Conclusions:
- Incentive compensation programs can be a strategic tool for primary care networks.
- Targeting physician productivity and desirable behaviors is crucial for financial sustainability in evolving healthcare landscapes.