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Updated: May 27, 2026

Using Visual and Narrative Methods to Achieve Fair Process in Clinical Care

Using Visual and Narrative Methods to Achieve Fair Process in Clinical Care

Published on: February 16, 2011

Aligning managed care contracts, compensation plans, and incentive models.

Michael E Nugent¹

¹Navigant Consulting, Inc., Chicago, USA. mnugent@navigantconsulting.com

Healthcare Financial Management : Journal of the Healthcare Financial Management Association

|December 2, 2011

Summary

Financial executives must align internal compensation models with new value-based payment strategies. This involves assessing organizational incentives and fostering dialogue to bridge the gap between external payment demands and internal fund distribution.

Related Experiment Videos

Last Updated: May 27, 2026

Using Visual and Narrative Methods to Achieve Fair Process in Clinical Care

Using Visual and Narrative Methods to Achieve Fair Process in Clinical Care

Published on: February 16, 2011

Area of Science:

Healthcare Finance
Health Economics
Payment Models

Background:

Traditional production-based compensation models are misaligned with emerging value-based payment systems.
Financial executives face challenges integrating new external payment models (e.g., shared savings, bundled payments, pay for performance) with internal provider compensation.

Purpose of the Study:

To address the disconnect between internal provider compensation and external value-based payment models.
To guide financial executives in aligning internal payment distribution with new third-party payment structures.

Main Methods:

Inventorying misaligned internal incentives within healthcare organizations.
Facilitating dialogue between physicians and payers regarding payment distribution.
Analyzing past implementation challenges of payment models.

Main Results:

No single "perfect" internal payment distribution model exists.
Alignment requires a tailored approach based on market position, organizational culture, and change readiness.
Proactive leadership from finance executives is crucial for successful integration.

Conclusions:

Healthcare organizations must adapt internal compensation to match external value-based payment models.
Strategic alignment of internal and external payment models is essential for financial sustainability.
Finance executives should lead the initiative to reconcile payment distribution strategies.