Hospital CEO finds solution to call budget unpredictability

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468 Beds

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Johnstown, PA

“Anybody that’s looking at how to manage call pay, they absolutely should go through the process and learn about it.”  

Bill Caldwell, CEO of Conemaugh Health System

The Challenge

Predictability in budgeting is everything. But for many hospital administrators, the rising cost of call pay and the constant possibility that yet more specialty groups will come forward asking for call pay makes setting a budget extremely difficult. But Bill Caldwell, CEO of Conemaugh Health System in Pennsylvania, has found a solution.

 

The Solution

Specifically, he’s tapped into the uniquely innovative call Pay Solution from MaxWorth Consulting. Having worked with MaxWorth at two other hospitals before coming to Conemaugh, Caldwell has seen how the solution allows administrators to fix call pay budgets and actually recoup some of the expenditure over time. He says the increased predictability and cost control measures around call pay help to ensure the long-term financial health of the organization.

 

“Call pay is one piece of a complex puzzle,” Caldwell said. “Being able to limit year-over-year call pay expenditures allows the hospital to set a fixed budget.”

 

A central part of the Call Pay Solution is the Physicians’ Call Committee, which brings multiple specialties together to create a plan for call pay based on a collectively established fairness standard. Caldwell said physicians are generally very logical people, and being able to see objective data about how call affects specialties differently helps change the conversation around call pay.

 

“It’s a very logical way to approach what can be an emotional discussion,” Caldwell said. “If you put your call committee together right, you can have a really meaningful dialogue across the specialties.”

 

The Call Pay Solution uses a deferred compensation vehicle known as the Physicians’ Advantage Plan to help doctors keep more of their earnings while allowing the hospital to offset the cost of call pay. After seven years of working with the Call Pay Solution, Caldwell said he can’t think of a single physician who started in the program and left it.

 

In fact, he remembers one specialty group that declined to participate, and after just six months of talking to their colleagues, they were back at the table asking to get involved.

 

“I think that says a lot,” Caldwell said.

 

Caldwell said he especially appreciates the way the MaxWorth team is able to educate physicians on the intricacies of the program. He said that goes a long way in alleviating fears among physicians and helping the administrative team get buy-in on the program.

 

“The entire team does a really, really good job of educating and explaining things, and then following up with the physicians,” Caldwell said. “There aren’t many questions that they don’t answer right then and there, and the doctors appreciate that.”

 

After seeing how the Call Pay Solution can help administrators balance their budgets, improve physician retention and recruitment and ultimately save hospitals money, Caldwell said he’s extremely pleased with the outcomes.

The Outcome

“It’s been a very positive experience,” Caldwell said. “I really haven’t had any negatives at any of the facilities I’ve been in.”

 

Having implemented the solution at three different hospitals, all with different cultures and strategic challenges, Caldwell said he’s convinced the solution can work anywhere.

 

“I don’t know why it wouldn’t work at any hospital,” Caldwell said. “Anybody that’s looking at how to manage call pay, they absolutely should go through the process and learn about it."

Learn More

For more information about the Physicians’ Call Committee, the Physicians’ Advantage Plan or the Call Pay Solution, contact MaxWorth Consulting today. We’re proud of our innovative solutions and would love to show you how they can help hospitals like yours tackle your biggest financial challenges.

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