When it comes to employee compensation, we typically think in terms of salary and qualified retirement plans. These two components represent the guaranteed elements of an employee’s compensation package. They are essential and, more often than not, they are adequate for the majority of employees. But physicians have unique financial needs, including creative retirement planning solutions and avenues for tax-sheltering. They also have student loan debts that are far greater than average.
Increasing the Value of Physician Compensation
While it’s common to see physician compensation packages that include RVUs, signing bonuses, and/or a form of income guarantee, these compensation elements do not address physicians’ unique needs. When hospitals find a way to do so, they are able to distinguish themselves in the marketplace. A more dynamic physician compensation package can offer increased value, which ultimately aids in recruitment and retention, and can increase physician satisfaction and engagement.
The Four Components
When building physician employee compensation packages, we believe administrators should consider using the following four components:
- Guaranteed, short-term rewards
- Guaranteed, long-term rewards
- At risk, short-term rewards
- At risk, long-term rewards
A Customizable Solution
One of the best things about this compensation model is that it’s highly customizable. We tailor our Physician Employment Strategies to meet the individual needs of our clients. The at-risk portion of a physician’s compensation package can be linked to a facility’s organizational goals. If retention is a top issue, more emphasis can be placed on at risk, long-term rewards. If a hospital is looking to improve productivity, it can use its at-risk, short-term rewards to incentivize improvements in productivity.
Measure What Matters
In order to link compensation to organizational goals, you need to be able to measure the criteria that matters most to your organization. Through our strategic partner network, our clients have access to data analytic tools that help them measure things like productivity, patient satisfaction, and quality, making it easier for them to use compensation as a tool for growth.
REQUEST OUR WHITE PAPER
Complete the form below and receive a copy of our latest white paper, The Call Pay Solution: Stabilizing budgets with a fair and sustainable approach
Want to Learn More?
The cascading impact of call coverage disputes By: Kyle Worthy In early September, Community Regional Medical Center in Fresno, CA was given 48 hours to resolve a contract dispute that had resulted in the loss of neurosurgery coverage in their emergency department. If they had failed to resume coverage, they…
Telemedicine’s impact on call pay By: Kyle Worthy COVID has brought about the widespread adoption of telemedicine. This technology can be a lifeline, particularly for smaller and rural facilities. For example, KershawHealth in Camden, South Carolina has thrived since it implemented a sophisticated telehealth system after losing many of its…
Perspectives on a Pandemic: Lessons learned from our podcast series By: Kyle Worthy Understanding COVID-19 has been a challenge, but at least one thing was immediately clear: its impact would be far reaching. Our podcast, Courage in Healthcare, recently launched a series called “Perspectives on a Pandemic.” We’ve spoken to…
Perspectives on a Pandemic: Dr. Ben Fickenscher By: Kyle Worthy Courage in Healthcare · Perspectives on a Pandemic: Dr. Ben Fickenscher The Pandemic’s Impact On The Opioid Crisis Covid-19 has altered our world in many ways. Members of the healthcare community have overcome unforeseen challenges and, in the process, they’ve…