Physician Compensation Plan Design + Consulting How you pay your physicians defines the physicians you retain. Who you retain, defines your practice. Do you have a competitive compensation plan that can attract and retain top talent? For your plan to be successful, it must reflect your goals for the practice, be supported and understood by your physicians, and remain financially viable for years to come. It also needs to answer this question: Who do you want to be?

Physician compensation plans done right

A well-structured compensation plan gives you a guide for paying your physicians while helping your practice meet market requirements. The end result is to attract and retain the most qualified and successful physicians to your practice. But where to begin? Are you competitive? Here are four questions to ask when designing a compensation plan for your medical practice:

What kind of medical practice are we?
The answer to this question should serve as the basis for your compensation plan. With a holistic view of your practice, you’re able to determine the type of practice you want to be—or should be—and move forward with designing a compensation plan that will recruit and retain providers who will help you get there.
Are your physician’s goals, and your practice goals aligned?
A successful comp plan is one where everyone has to give a little. Identifying your physicians’ pain points can help you better understand what is and isn’t negotiable. With this in mind, it’s important to make sure your physicians and leadership are on board—and on the same page—with the goals for the practice.
Do your physicians understand your compensation plan?
This may be the most critical component of designing a compensation plan for your medical practice. Your physicians need to fully understand how it affects them. Any buy-in or financial confidence you’ve instilled in your compensation plan will be worth nothing if your physicians can’t decipher what it means.
Is your compensation plan financially viable?
You can have the most well thought-out, diplomatic compensation plan in the world, but if it doesn’t make financial sense for your practice, it won’t be successful. All too often we see compensation models that have absolutely nothing to do with a practice’s income. A practice’s net income is the absolute maximum amount that could be distributed to its physicians. After all, no business can survive if it’s paying out more than it brings in. To ensure your compensation plan is financially viable, consider running models that can help you determine the true cost of compensation over time.

How – not just how much – you pay your physicians matters.

There are many options for how you can go about structuring your practice’s compensation plan. But in order for your plan to be successful, it must reflect your goals for the practice, be supported and understood by your physicians, and remain financially viable for years to come.

Minneapolis physician compensation plan design + consulting services include:

  • Market benchmarking (local and national)
  • Compensation design SWAT analysis
  • Physician interviews/input
  • Measurement and scorecard assessment
  • Financial modeling + presentation
  • Compensation design implementation
  • Compensation design support
  • Value-based design beyond wRVU’s
  • Incentive based design
  • Provider attraction/retention
  • Superior performer platforms
  • Testing and validation
  • Evaluate the broader market
  • Evaluate the national market
  • ACO models
  • Shared savings programs
  • MACRA; MIPs and APMs
  • Qualitative and quantitative data review
  • Volume to value
  • Physician education
  • Multi-specialty or specialty design

With a clear + competitive compensation plan, your practice vision can be achieved.

Healthcare organizations cannot afford to go it alone – the costs and risks are simply too high. A better way is through partnership with DS+B healthcare specialists. Our team has deep industry insight, provider compensation data benchmarks, and the experience to help you not only design, but align your physician compensation strategy with your organization’s vision.

Let’s start a conversation. Contact us today.