Many physician compensation plans fail, but practices can avoid failure with a few key strategies, according to a Diagnostic Imaging report.
1. The primary goal should be group preservation — Physician turnover has destroyed practices and it's expensive to replace physicians. Keep that in mind when developing compensation plans.
2. The entire group can't be pleased — the top producers often want the compensation formula changed to include a productivity component. Consider the cost of unhappy top producers leaving compared to a changed compensation model before deciding for or against the change.
3. Annual reviews can be helpful — The annual reviews can help find physicians who may be dissatisfied with compensation and you can anticipate future requests for change.
4. Each practice is different — Surgery groups use different compensation formulas than primary care practices and specialists. Consider the specialties, location and physician preference for production versus flexibility when developing the compensation plan.