What are the most effective ways to manage physician compensation?

2 Offering flexibility and choice

Another way to manage physician compensation effectively is to offer flexibility and choice to your physicians, especially in terms of how they structure their income and benefits. For example, you can provide different compensation models, such as salary, productivity, hybrid, or capitation, and allow your physicians to choose the one that best suits their practice style, goals, and preferences. You can also offer options for deferred compensation, retirement plans, malpractice insurance, continuing education, and other benefits that can enhance your physicians' financial security and well-being. By offering flexibility and choice, you can increase your physicians' engagement, loyalty, and satisfaction.

3 Benchmarking and adjusting regularly

Another important aspect of managing physician compensation is to benchmark and adjust your compensation levels and components regularly, based on market data, industry standards, and best practices. You need to ensure that your compensation is competitive, fair, and transparent, and that it reflects the changes in the healthcare environment, such as regulatory requirements, consumer demands, and technological innovations. You also need to review and update your compensation contracts and policies periodically, and involve your physicians in the process. By benchmarking and adjusting regularly, you can maintain your attractiveness as an employer, avoid disputes and lawsuits, and ensure compliance and alignment with your organizational goals.

4 Fostering a culture of collaboration

Finally, one of the most effective ways to manage physician compensation is to foster a culture of collaboration among your physicians and between your physicians and your organization. You need to create a sense of shared vision, mission, and values, and encourage your physicians to participate in decision-making, governance, and leadership roles. You also need to provide opportunities for professional development, mentoring, recognition, and feedback, and address any issues or concerns promptly and respectfully. By fostering a culture of collaboration, you can enhance your physicians' motivation, performance, and retention, and create a positive and productive work environment.