Incentive Compensation

Pay-for-performance payment model – healthcare payment systems that offer financial rewards to providers who achieve, improve or excel their performance on specified quality of care and cost measures (HealthCare Incentives Improvement Institute, N.D.)

It is commonly believed that the method of physician remunerations affects their professional behavior. As a result, payment systems are therefore manipulated in attempts to achieve policy objectives with the primary aim to improve quality of care, contain cost and maintain recruitment of human resources in underserved areas. (2,1)

Currently, the Alvin C. York VA Medical Center utilizes a poorly implemented and poorly designed incentive program. The current inventive program rewards the majority of employees solely based on a yearly evaluation. The terms of the evaluation are set by human resources employees including the criteria for what constitutes an adequate performance level. Ideally, this evaluation rating system should be developed by individual supervisors so that departmental and unit goals can be effectively achieved. After all, the purpose of an organization exists to reach the organizations goals (Nassar, 2007). There are some general incentives that appear to be effective incentives for acute care nurses. These general incentives include providing adequate

There is a growing trend in the United States called pay-for-performance. Pay-for-performance is a system that is used where providers are compensated by payers for meeting certain pre-established measures for quality and efficiency (What is Pay-for-Performance, n.a.). We are going to be discussing what pay-for-performance is. There are different aspects of pay-for-performance which include; the effects of reimbursement by this approach, the impact cost reductions has on quality and efficiency of health care, the affects to the providers and patients, and the effects on the future of health care.

Championing a cause is a beautiful way for ordinary citizens to be involved in political activism. The modern party activist is more likely to be driven by purposive incentives than ever. This switch away from material and social incentives, driven by an increased awareness of social issues, has allowed party lines to blur in a way that has improved America's political sphere, and has allowed the increased participation of citizens in the democratic process.

The intent of this assignment is to develop a user-friendly tool that may be applied in the workplace to document Compensation processes and to guide a practitioner in completing the critical steps of each process. The purpose of this assignment is to assist in describing each component of a compensation management system, to develop a practitioner's guide for several of the key compensation management tasks covered in HR511 Total Rewards.

A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:

The performance-pay compensation plan that was proposed implemented a number of aspects of the Expectancy Theory to encourage intrinsic and extrinsic motivation in order to make positive gains for both the MGOA and the MGH. There were four main aspects of the plan that had changes implemented: Physician Base Salary, Development Fund Tax, Bonus, and

Pay for performance systems have further been proven to have two advantages for organizations: attracting more high-quality employees and motivating employees to exert more effort at their jobs. (Gordon, Kaswin) This paper will show the positive benefits of performance pay as

In my experience, the hardest situation for me to control is having performance goals that I do not directly control. For example, one of my performance goals is safety, which is extremely important within my organization and a large percentage of my yearly incentive check is based on how safe my company is as a whole. Obviously I can control how safe I am, and have a high degree of control with my own employees, however, there are employees in other locations that report to someone else, but they can have an effect on the amount my incentive check will be. Our company safety objectives affect everyone’s incentive check, either positively or negatively.

Pay for performance is indeed a popular system of reimbursement to hospitals and providers, with adjustable financial incentive rates or a bonus. That said, I like that you reminded us there is a difference in the goals and process of the pay for performance and those of utilization management department, however, it is possible for providers or hospitals to use the result of a utilization management process such as retrospective reviews to improve their patients’ health care services in the health care arena, consequently, enhancing their incentive from their respective insurer. I like that you enumerated in details the activities covered under the pay for performance quality improvement reviews, as it is important to for health care managers to be cognizant of the various segments of the

Although research generally confirms that pay-for-performance plans can influence greater outcomes, it is unclear how effective different pay plans are relative to each other (Park, 2012). Like most things in business, compensation is something that requires evaluation, study, assessment, strategy, modeling and integration.  Achieving a pay for performance culture does not happen without paying attention to the behaviors, activities, rewards and motivations that have to be linked and reinforced through a well engineered and successfully executed process.  Actually if that process does not tie rewards to shareholder financial objectives, employ the proper mix of compensation elements, result in meaningful dollars, embrace performance that employees can impact and are effectively communicated and reinforced, then the results it produces will likely fall short (Vision Link Advisory Group, 2013).

1. Incentive compensation is a major practice that has continually been adopted by healthcare organizations, especially for managers. Most of these organizations use this tool as a means of rewarding employees financial for outstanding performance. Generally, incentive compensation involves the use of monetary reward for managers to attain specific established goals. Therefore, incentive compensation can be a motivational tool that benefits health care managers and the entire organization because it enables managers to achieve greater compensation while promoting organizational productivity. As the Chief Executive Officer of a hospital, I would design an incentive compensation program for my management team by aligning the financial rewards with business objectives and people costs. This will involve the use of a comprehensive approach that examines basic pay, health benefits, incentive opportunities, and retirement programs. The alignment of the compensation program is geared towards promoting organizational productivity and employee motivation.

Pay for performance is to link employees’ salary or salary increase to his or her performance. It seems to be a reasonable or attractive idea but it often does not work well in organizations. Please use at least 4 motivation theories or models to explain why pay for performance may not work as expected—particularly in government and nonprofit organizations.

An incentive pay program can reward employees who continue to produce superior work or encourage employees who already produce good work to best. Sometimes, use an incentive system when employees are lack of enthusiasm of getting down to work and improving things. If everyone in the same job classification gets the same pay, there is no real incentive to do an outstanding job (French, 1990). Various incentive plans used to motivate all employees such as production staff, sales staff, administrative staff and managerial and professional staff on an individual basis. To be improved employee work performance, the incentive pay programs need to be fairly matched with the employees’ expectation. Properly designed and maintained incentive pay program has the potential to increase employees’ productivity and work performance.