Case Study: Provider Compensation Misalignment

• May 10, 2022

Fragmented provider compensation structures risk significant negative financial impacts. There is a high potential for provider investment to outpace productivity and risk of turnover as high productivity, low compensation providers seek employment alternatives.

Medical groups must juggle numerous competing pressures as they design provider compensation structures, including 2021 MFPS changes, PSA arrangements, employment contracts, professional collections, key income statement metrics, industry trends, etc.

Medical groups which grow quickly and significantly often inherit a medley of various provider compensation agreements. Such groups can benefit immensely from an overarching provider compensation philosophy.

Read the case study for financial performance observations and recommendations.