Value-Based Physician Compensation: Considerations in the Transition

The U.S. healthcare system is in the early stages of a transition from a volume-based to a value-based reimbursement methodology that will require many years to take effect. Regardless of your beliefs about the long-term effectiveness of payment reform, physician organizations, including hospital-based and independent medical groups, will need to adapt to a payment environment that rewards value over volume. As payment models shift toward a focus on value and reimbursement becomes increasingly linked to measurements of quality and efficiency, physician organizations will need to incorporate this new focus into the day-to-day actions of their physicians. The most effective mechanism to accomplish this goal is to modify today’s physician compensation structures to better align with organizational goals in a value-based payment environment. This presentation addresses the critical success factors for integrating nonproductivity incentives into a market-based compensation plan.