Aligning physician compensation with strategic goals.

Area of Science:

• Healthcare Management
• Physician Compensation Strategies
• Value-Based Care Models

Background:

• Mayo Clinic Health System (MCHS) utilized 13 distinct physician compensation models in 2012.
• Most existing models were primarily based on physician productivity metrics.
• A need existed to standardize compensation to support system integration and value-based care adoption.

Purpose of the Study:

• To transition all MCHS physicians to a single, unified compensation model.
• To facilitate integration with Mayo Clinic.
• To promote physician engagement with evolving value-based payment models.

Main Methods:

• Implementation of a new physician compensation model in January.
• The new model incorporates quality metrics into physician pay.
• Physicians receive regular performance reports.

Main Results:

• The new compensation model has already led to increased physician focus on key performance areas.
• Enhanced attention to patient outcomes, safety, and patient experience has been observed.
• Facilitation of MCHS integration and physician engagement with value-based care.

Conclusions:

• A unified physician compensation model can successfully drive attention to quality and value-based metrics.
• Standardized compensation models support healthcare system integration and physician engagement.
• The transition has positively impacted physician focus on patient care quality and safety.