Strategic Executive Compensation in Medical Groups

Strategic Executive Compensation in Medical Groups

Untitled-1

As we’ve discussed in the past, dynamic hospital compensation programs can be the key to attracting and retaining top executive talent, which ultimately impacts the continuity of care in america. 

 

As we transition to new delivery models, there is a growing need to think strategically about medical group executive compensation as well.

 

A rise in executive compensation

 

A recent MGMA study found that medical group executive compensation has increased nearly 14% over the past four years. The same study found that CEOs of larger medical groups experienced slower increases in compensation than CEOs of smaller groups. This means that smaller organizations are fighting to remain competitive, and one way they’re doing this is by offering attractive rewards packages. 

 

The importance of long-term stability

 

This approach is effective as long as compensation programs are designed with long-term sustainability in mind. Without a long-term vision, hefty rewards packages can deplete resources, making it hard to retain executive talent without threatening the financial viability of an organization.

 

The Healthcare Executive Advantage Plan

 

If medical groups are going to remain competitive and sustain increases in compensation, they must think strategically.

 

In many cases, medical groups can apply strategies from our Hospital Executive Advantage Plan to create a more sustainable rewards program for their executives. For example, we combine short-term and long-term rewards to create a balanced rewards suite that will help organizations attract and retain top executive talent. This approach, combined with our platform for cost-recovery, ensures the long-term sustainability of our programs.

 

Whether your organization is a level one trauma center or a physician-owned multi-specialty group, thinking strategically about your rewards and benefits can position you as a market leader for years to come.

 

SIGN UP FOR OUR NEWSLETTER

If you would like to receive industry updates and articles like the one you see here, complete the form below
Something went wrong. Please check your entries and try again.

Want to Learn More?

Retention plans counteract troubling trends

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…

The Anonymous Physician on the Physicians’ Advantage Plan

The Anonymous Physician:  How they will use the Physicians’ Advantage Plan The Anonymous Physician column provides physicians with a platform to discuss the challenges and joys of practicing medicine. From time to time, we pose a question to a doctor, or a group of doctors, and post their answers anonymously,…

Practice Transition Strategies: Planning ahead for inevitable change

Practice Transition Strategies: Planning ahead for inevitable change According to the 2021 Jackson Physician Search survey, 21% of physicians are considering early retirement. This trend is expected to exacerbate the physician shortage, which is an increasingly troubling issue for the industry. But what does it mean for individual organizations?  …

Rural Healthcare in America: Financial Viability

Rural Healthcare in America Courage in Healthcare · Rural Healthcare in America: Financial Viability Episode Three: Financial Viability   In this series on rural health in America, we’re diving into the issues that are threatening access to care in some of our most medically underserved communities.   Our third and…