The Guide to Managing Your Provider Compensation Function Infrastructure

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Contextualizing the Provider Compensation Function within Integrated Healthcare Systems

Increasingly, the provider compensation function is serving a critical role within integrated healthcare systems. The heightened relevancy and sophistication of the function is a manifestation of several related trends, including:

  • The continued migration of physician practices away from private settings into employed or contractual-based arrangements.
  • The transition of provider compensation plans away from pure productivity models toward more balanced payment approaches.
  • Increased regulatory scrutiny and complexity associated with hospital-physician business transactions

Despite these dynamics, healthcare organizations have struggled to understand the optimal configuration of their provider compensation function. This guide seeks to offer perspectives on the following key points:

  • The core tasks that fall within the provider compensation function
  • The number and types of human capital necessary to support the function
  • The organization of the function and its relationship with the broader institution

Additionally, the guide will take you through the five core tasks of the provider compensation function, dive into human resource support levels, and look at how this will impact a sample set of organization types.

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