Physician Compensation Strategy for the Healthcare Industry



    Executive Vice President



    Vice President


Physician compensation strategies are continually evolving with the healthcare industry, which is fueled primarily by the growth in hospital employed provider networks and the shift in the industry to value-based care. These changes call for the standardization of provider compensation structures and the development of models that require success in both fee-for-service and fee-for-value environments.

At Coker, we work with health systems and large medical groups to develop new provider compensation models or to revise existing compensation plans to create effective strategies. These initiatives can range from full redesign engagements to ongoing assistance in managing new or existing arrangements. Our expertise in compensation strategy spans the healthcare industry–community hospitals, academic medical centers, critical access hospitals, single-specialty medical groups, multi-specialty medical groups, and others.

Specific examples of our compensation strategy work include the following:

  • Redesigning a health systems 250 physician provider network to standardize compensation models across multiple specialties, clean up past practices and behaviors, incorporate panel size into primary care, allow for value-based incentives to play a more significant role, develop an implementation strategy that allowed for change management to occur.
  • Forming a new compensation structure for a 50-physician private practice as they joined a local health system under a group practice structure. This project included adapting their prior “eat-what-you-kill” model to a wRVU-based model, while still incorporating the necessary elements to address all the needs of a dynamic multi-specialty group.
  • Assisting with a health system’s alignment strategies, crafting compensation model structures for the various medical practices they were acquiring and onboarding. This support included performing financial due diligence, developing a model structure consistent with the health system’s past practices, and comparing to the practice’s prior financial performance to determine the economic impact.
  • Providing day-to-day support for multiple health systems as they work through physician compensation issues.

Other physician compensation related services we offer include:

  • Compensation Valuation
  • Physician Practice Performance Improvement
  • Physician Group Governance
  • Transaction Advisory

If you need assistance with your organization’s physician compensation model, please contact us today.

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    Contact us today for more information about our healthcare consulting services and learn how we can help your organization.

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