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An incentive management plan for hospital-based physicians.

D T Jones

    Journal of Medical Systems
    |February 1, 1986
    PubMed
    Summary
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    This study introduces a physician incentive program that rewards increased hospital profitability and productivity. The system tracks physician work units to distribute bonuses, encouraging revenue growth and cost containment.

    Area of Science:

    • Healthcare Management
    • Health Economics
    • Physician Compensation Models

    Background:

    • Salaried physicians in hospitals often lack direct financial incentives tied to productivity and profitability.
    • Traditional compensation models may not fully align physician efforts with institutional financial goals.
    • Developing effective incentive programs is crucial for optimizing hospital performance and physician engagement.

    Purpose of the Study:

    • To present an incentive management program designed for hospital-based physicians.
    • To align physician productivity and hospital profitability through a structured bonus system.
    • To provide a framework for rewarding physicians for both revenue-generating and non-revenue-generating activities.

    Main Methods:

    • Development of a physician productivity tracking system using assigned work units.

    Related Experiment Videos

  • Creation of a bonus pool funded by increases in hospital net income over a base year.
  • Implementation of a reporting application to process hospital data and generate physician productivity reports.

    • Main Results:

    • The program incentivizes physicians to enhance revenues while managing costs.
    • Physician bonuses are distributed based on relative productivity, measured by work units.
    • A user-friendly, menu-driven, spreadsheet-based reporting tool was developed for data analysis.

    Conclusions:

    • The developed incentive management program effectively links physician productivity to hospital financial performance.
    • This model provides a mechanism for rewarding physicians for contributions that improve institutional profitability.
    • The system offers a scalable solution for hospitals seeking to optimize physician compensation and operational efficiency.