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Metric Achievement: A Growing Component of Physician Compensation

Posted 9:01 PM by

Doctor with Measuring Tape Hanging from Stethoscope

More and more, the healthcare marketplace is placing increased importance on patient satisfaction and quality care. As such, compensation models for physicians are increasingly emphasizing the importance of achieving certain patient satisfaction and quality care metrics. 

Even though it is still a small percentage of overall physician compensation, the Medical Group Management Association’s annual survey quantifies the recent growth of metric-based compensation. 

From 2012 to 2013, the percentage of specialists’ physician compensation dependent upon the achievement of performance metrics grew from 1.61% to 2.31%, and it is a trend that does not appear to be going away anytime soon.

How should performance-based metrics be determined, and what makes them effective? The answer will always depend on the nature of healthcare services being provided. However, the best metrics will be those that are easily understood, easily measured, and meaningful to the quality of care provided. 

Structuring incentives that empower healthcare providers to focus on improving patient outcomes and patient satisfaction, as well as incentivizing continued improvement to the existing business model, are ideal. For example, improving patient satisfaction through decreased wait time can, if implemented correctly, also improve the overall efficiency of the business model.

There will always be a balance to be achieved between the cost and the quality of patient care, but through the implementation of proper incentive metrics, it is possible to improve patient care and financial sustainability of the medical business.

Source: Forbes

About the Author
Jimmy Wade is a member of Katz, Sapper & Miller’s Healthcare Resources Group. Jimmy provides tax preparation and planning, financial statement compilations, healthcare consulting, and fair market value analyses. Connect with him on LinkedIn.

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