56% of Hospitals Have Physician Compensation Governance

Roughly 56 percent of hospitals have a physician compensation governance structure, and that number is expected to rise as more physicians become hospital employees, according to a survey from consulting and compensation firm Yaffe & Company (pdf).

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The survey, which focused on how healthcare organizations structure the compensation of their employed physicians, fielded responses from 177 hospitals and health systems in 34 states. Most responding hospitals had less than $200 million in net patient revenue. Here are other major findings from the survey:

• The median figure of employed physicians within an organization was 25 percent.

• Of hospitals with a physician compensation governance structure, the most common elements in place include reporting guidelines and compliance guidelines (e.g., establishing a framework for the physician compensation board).

• The hospital group most responsible for physician compensation standards was the executive committee (24 percent). Roughly 10 percent of hospitals said that responsibility was for their compensation committee, and 9 percent actually have a physician compensation committee.

• Twenty-four percent of respondents said they use three or four different data sources to establish physician compensation. More than 20 different sources were named, with MGMA as the most cited.

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