Proposed legislation could impact physician compensation

Proposed legislation could impact physician compensation

AdobeStock_88779030 [Converted]

Most patients assume their care will be covered by insurance as long as they go to an in-network hospital. But this is not the case if they’re treated by an out-of-network physician. Patients in this situation can end up with surprise medical bills for tens of thousands of dollars. 

 

No easy fix

 

Lawmakers are currently trying to solve this problem. Even in a deeply divided congress, everyone agrees that patients should not face surprise medical bills. What they can’t agree on is an appropriate solution.

 

Under the current bill, a default price would be set on medical bills under $750. Bills exceeding that amount would go to arbitration. Hospitals and physicians are worried that default payment rates will decrease the likelihood that they will be compensated fairly for the services they provide. 

 

The ripple effect

 

As congress debates proposed solutions to the problem of surprise medical bills, more and more doctors are becoming concerned about the long-term stability of their income. In search of stability, they are likely to turn their attention to their call pay arrangements.

 

History teaches us that when reimbursements go down, call pay goes up. The reimbursement reductions that occurred after the passage of EMTALA resulted in an onslaught of physician demands for increased call pay. Many hospitals felt they had no choice but to give in to these demands in order to secure call coverage. This turned call pay into a crushing financial burden for many healthcare organizations, and it’s still a top concern today. 

 

Now that physicians feel that their income is once again threatened by proposed legislation, hospitals could see another onslaught of demands for increased call pay.

 

Preparing for the second wave

 

MaxWorth’s Call Pay Solution was designed to help hospitals manage their call pay budgets. A departure from the single-specialty-negotiation approach that has divided so many medical staffs, the program establishes a fairness standard for an organization’s call pay rates. It also increases the value of call pay by giving physicians the opportunity to invest the compensation on a pre-tax basis. To ensure the long-term sustainability of the program, hospitals are given the opportunity to recoup a portion of their call pay expenditure. 

 

To learn more about the program, download our white paper, The Call Pay Solution: Stabilizing budgets with a fair and sustainable approach.

 

REQUEST OUR WHITE PAPER:

Complete the form below and receive a copy of our latest white paper, Call Pay Solution: Stabilizing call budgets with a fair and sustainable approach

Something went wrong. Please check your entries and try again.

Want to Learn More?

The fairness factor: How to avoid agitation around nurse pay

The fairness factor: How to avoid agitation around nurse pay MaxWorth got its start designing healthcare compensation strategies nearly two decades ago when call pay was one of the most contentious topics in the industry. We quickly learned that a perceived lack of fairness was at the heart of nearly…

Balancing penalties and rewards in benefits for health care providers

Balancing penalties and rewards in benefits for health care providers NBC News recently reported that it’s becoming common for hospitals to require nurses to pay back the cost of their training if they choose to leave or are fired within a certain amount of time. These costs can amount up…

Hidden opportunities to reduce healthcare labor cost

Hidden opportunities to reduce healthcare labor cost In January, KaufmanHall reported that 2022 was the worst financial year for hospitals and health systems since the start of the COVID-19 pandemic. December saw an increase in provider productivity, but it simply wasn’t enough to outweigh cost increases.    Expenses likely to…

Benefits for an aging physician population

Benefits for an aging physician population The AAMC’s 2022 Physician Specialty Data Report found that nearly half of physicians currently practicing are aged 55 or older. An aging physician population places pressure on recruitment and retention in many ways. Healthcare leaders might be asking themselves: Are young people encouraged to…