Student loan forgiveness is a trending benefit. Can it apply to physician employees?
By: Leah Worthy
A recent Willis Towers Watson survey showed that more employers are adding student loan forgiveness to their benefit packages. Given that the average medical school debt exceeds the average undergraduate debt by over $160,000, it would be a significant financial commitment for a hospital to offer such a program to its employed physicians. The good news is, there are ways hospitals can structure their compensation packages to help their physicians with their student loans without breaking the bank. In fact, many physicians have told us that they are using their distributions from our Call Pay Solution to pay off their loans. Imagine what could be accomplished if programs were designed with this goal in mind.
Student loan repayment as a target benefit
One way for hospitals to help physicians with this common financial burden is to designate student loan repayment as a target benefit of reward programs like our Physician Employment Strategies. Unlike traditional repayment or forgiveness programs, our Physician Employment Strategies can be customized, making it possible for hospitals to require employees to remain on staff for a period of years in order to receive benefits such as loan repayment. This means that the program is equally advantageous to the organization as it can help prevent the loss of physician talent. The program also uses funding methodologies that allow the hospital to recover some of the costs associated with the program, making it a viable long-term solution.
Customizable programs can keep up with trends
The features of our Physician Employment Strategies make it possible for hospitals to offer rewards that would otherwise be financially unfeasible in the healthcare industry. As trends like loan forgiveness come and go, it’s important for hospitals to have customizable programs in place, allowing them to offer competitive compensation packages without threatening their financial viability.
REQUEST OUR CASE STUDY
Learn how you can reduce cost while distancing yourself from the competition
Want to Learn More?
Courage in Healthcare: Kevin Callanan, CFRE By: Kyle Worthy Foundations: shaping healthcare in their communities and beyond During his 25-year fundraising career, Kevin Callanan has raised over $56 million for community hospitals and schools. His biggest project to date was the $10 million capital campaign that funded the creation of…
The impact of call coverage on a hospital’s reputation By: Kyle Worthy Hospitals tell us that nearly 80 percent of their patients come through their emergency departments. That means that the majority of patients are directly affected by which service lines are available on call. Therefore, this availability (or lack…
Value-based care creates opportunities for alignment By: Kyle Worthy It’s no secret that incentivised compensation programs can enhance organizational alignment across many industries. But incentivisation is a complex issue in healthcare due to federal regulations put in place to prevent kickbacks. This complexity causes many hospitals to be wary of…
Proposed legislation could impact physician compensation By: Kyle Worthy 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…