Case 2 Proposal - Standafer

.docx

School

University of Kentucky *

*We aren’t endorsed by this school

Course

783

Subject

Health Science

Date

Apr 3, 2024

Type

docx

Pages

Uploaded by DeaconComputerMonkey22

Arikka Standafer Case 2: Beaufort Family Physicians Compensation Model Proposal The decision has been made to go away from a compensation model that provides equal base salary and equal incentive bonuses for all partners. Management has been tasked with implementing a new physician compensation model that is 1) trusted 2) clearly understood 3) perceived to be equitable 4) create proper incentives and 5) be affordable. After consulting with the practice’s CPA, it is the determination that the following compensation model would meet all of those requirements. Base Salary $800,000 would be allocated to total compensation. Base salary would be set at $700,000 and that would allow $100,000 for incentive bonuses. Increasing base salary, which was previously $680,000, would provide additional funds for guaranteed salary. Furthermore, retirement contribution is tied to base salary. Incentive Bonus This leaves $100,000 to allocate to incentive bonuses. The incentive bonuses are going to be based on metrics related to productivity, financial performance, and quality. These measures will be discussed in depth below. Productivity Patient Visits – 5% Number of patient visits is set at a very low 5% because physicians with a high rate of no call/no show patients should not be penalized. Work wRVUs – 50% Work RVUs is set at 50% because RVUs is a standardized way to determine productivity. Furthermore, CPT codes are given weights to determine how many RVUS the code is worth. This means that a level 5 new patient visit is worth more than a level 1 established patient visit. Differences in severity/complexity of each physician’s work is already factored. Professional procedures – 5% Number of patient visits is set a very low 5% because physicians who do not provide a high number of procedures should not be punished. The complexity of procedures is already being considered due to RVUs (see above). Financial performance Gross charges – 10% Gross charges is set at a minimal 10% to ensure that physicians and the Coders are working together to ensure proper billing.

Arikka Standafer Net collections – 10% Gross charges is set at a minimal 10% because the financial performance of the practice is important. Without collecting on our claims, there will not be funds left over for incentive payments at all. Net income – 10% Net income as a measure is meant to allocate practice costs to each individual physician. It is set at a minimal 10% because it ensures that individual providers are good stewards of resources without penalizing heavy utilizers (such as those who are procedure heavy). Quality Patient satisfaction – 10% Patient satisfaction is set at 10% because it provides motivation for physicians to perform well and improve outcomes. We want our patients to feel heard and have a good experience at our practice. Blood pressure control target met – 0% This is set at 0% because this is heavily influenced by patient follow thorough. Physicians should not be penalized because of this measure is heavily patient influenced. Breast cancer screening target met – 0% This is set at 0% because while men can be diagnosed with breast cancer, this is a disease that heavily impacts women. Physicians with a patient population that is heavily male would be penalized. Furthermore, this measure is heavily dependent upon patient consent. Impact on Individual Physicians Last year every physician was paid a monthly salary of $14,167 ($170,000/ annual) plus a bonus of $30,000. Based on the proposed model, some physicians will earn more and some physicians will earn less. Physician A – using projections from last year’s numbers, the estimated total compensation using the proposed compensation model is $198,735. This represents a 0.63% reduction. Physician B – using projections from last year’s numbers, the estimated total compensation using the proposed compensation model is $199,238. This represents a 0.34% reduction. Physician C – using projections from last year’s numbers, the estimated total compensation using the proposed compensation model is $200,887. This represents a 0.44% increase.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help