Incentive Pay is on the rise for executives
A recent B.E. Smith report on healthcare compensation illustrated a growing trend towards incentivized executive compensation. Now 57% of healthcare organizations have executive compensation programs that incorporate at-risk incentivized rewards, and over the past year, the percentage of healthcare executives who received incentivized pay increased 7%.
These incentives are typically aimed at two objectives: the transition to value-based care and the improvement of operating margins. Most incentivized programs target both of these objectives, but place more emphasis on the transition to value-based care.
One size doesn’t fit all
As incentivized programs become more common, it’s important to remember that every healthcare organization is unique. When it comes to compensation, what works at one facility doesn’t necessarily work at another. In order to maximize the benefits of having an incentivized rewards program, you need to build a strategy around the unique needs of your organization.
A customizable solution
Our Healthcare Executive Advantage Plan was designed to be customizable, allowing organizations to reward what matters most to them at the time while keeping an eye on the future. Through our strategic partner network, our clients have access to tools that analyze revenue by provider and compare provider productivity relative to patient complexity. This makes it possible for them to reward things like productivity and quality in a meaningful way.
When healthcare organizations make the most of their at-risk incentives, their compensation program becomes a powerful tool. It can help improve productivity, performance, patient satisfaction, and cash flow, putting a facility in a position to achieve its highest goals.
REQUEST OUR WHITE PAPER:
Complete the form below and receive a copy of our latest white paper: Rewarding Excellent Administrators
Want to Learn More?
Roadblocks to Physician Recruitment and Retention Part Three: Financing Non-qualified deferred compensation (NQDC) plans can help hospitals and health systems recruit and retain physicians. Unfortunately, most healthcare organizations do not fully utilize this tool. In previous posts, we talked about how a lack of thoughtful design and communication can…
Roadblocks to Physician Recruitment and Retention Part Two: Communication A recent Jackson Physician Search survey found that the pandemic has caused an increase in the number of doctors considering early retirement. This trend is expected to exacerbate the physician shortage that’s already placing a strain on the industry. In…
Roadblocks to Physician Recruitment and Retention Part One: Plan Design For most healthcare organizations, physician recruitment and retention has never been more important or more challenging. Many don’t realize that they already have an excellent tool at their disposal: their non-qualified deferred compensation (NQDC) plans. These plans can distinguish…
Retention plans counteract troubling trends A recent Becker’s Hospital Review article outlined 5 compensation trends in healthcare, including the fact that the annual turnover rate in emergency, ICU, and nursing departments has increased during the pandemic, rising from 18% to 30%. Turnover is expensive, particularly when it comes to…