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Using a productivity-based physician compensation program at an academic health center: a case study
Margie C Andreae1, Gary L Freed
1Division of General Pediatrics, University of Michigan Health System, Ann Arbor, 48109-0456, USA.
Academic Medicine : Journal of the Association of American Medical Colleges
|September 14, 2002
Summary
Academic health centers can successfully implement productivity-based physician compensation. A new program for pediatric faculty boosted clinical productivity without affecting teaching quality or student evaluations.
Area of Science:
- Medical Economics
- Academic Medicine
- Pediatrics
Background:
- Academic health centers (AHCs) face budget constraints, leading to a focus on physician compensation strategies.
- Concerns exist that revenue-driven compensation may negatively impact the academic mission, but data is limited.
Purpose of the Study:
- To evaluate the impact of a novel productivity-based compensation program on teaching and clinical productivity for pediatric primary care faculty at an AHC.
- To compare faculty productivity against national benchmarks.
Main Methods:
- A baseline assessment of 35 academic general pediatricians' productivity and compensation was conducted, benchmarked against Medical Group Management Association (MGMA) data.
- A compensation program was designed and implemented, using relative value unit (RVU) work components to measure productivity.
- Post-implementation productivity, compensation, precepting hours, and student evaluations were compared to baseline data.
Main Results:
- Initially, over 50% of faculty productivity was below the MGMA 25th percentile, while compensation exceeded this.
- Following program implementation, 89% of faculty demonstrated increased clinical productivity.
- No significant changes were observed in faculty precepting hours or student evaluation scores.
Conclusions:
- Productivity-based physician compensation models are feasible and effective within AHC settings.
- Such programs can enhance clinical productivity without compromising educational activities.