VIDEO | Physician Compensation Administration: Developing a More Strategic Approach

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Health systems continue to grow…but physician compensation administration programs often struggle to keep pace.

Many organizations find themselves reacting with minimal standards and limited governance, leading to more exceptions, less transparency, and increased risk. In a complex and resource-constrained environment, this can undermine trust and strain compensation teams.

In this short video, Joe Davio explores how organizations can move toward a more advanced stage of compensation program maturity – one that improves reliability, efficiency, and provider engagement. Strengthen your physician compensation administration processes

Video Transcript

My name is Joe Davio. I am a Consulting Manager at SullivanCotter and I work with clients to assess and reimagine their compensation programs to improve team performance, create high reliability, and lower overall risk.

Over the past decade, the market has seen significant consolidation, resulting in sizable medical groups. This has subsequently led to health system challenges in managing such a large provider compensation program in a strategic and efficient manner. This is especially challenging in a dynamic environment like health care, where provider work varies and the compensation models to support them are inherently different. In addition, organizations are facing resource constraints around staffing, technology, and budget.

As organizations have grown rapidly, we’re commonly finding that they are operating in an initial stage of maturity and reacting with minimal provider compensation standards and insufficient governance. This often leads to more exceptions, a lack of transparency, and a culture of ambiguity or distrust towards the compensation program, regardless of the integrity or intent of the compensation program’s leadership.

In an ideal state, organizations are operating in a more advanced stage of maturity by focusing proactively on people, process, and technology. Of course, each organization is unique and there is no one-size-fits-all solution. So where do you start? We lead clients through a three-step process to create an ideal compensation program.

1. First, we conduct a current state assessment of the overall compensation program, which is intended to identify strengths and opportunities.
2. Next, we use the assessment to inform a holistic and prioritized project plan to address the organization’s needs that considers risk, feasibility, and interdependent value creation. These initiatives are designed and prioritized to be complementary in nature, maximizing value and lowering risk, ultimately moving organizations to a more advanced stage of operating maturity.
3. Step three is design and implementation. Here an organization begins to see the benefits of a strong compliance program where governance is well-defined and consistently applied. The compensation program is standardized and aligned to the organization’s strategic plan, and the compensation team is functioning efficiently – producing timely and reliable results.

Ultimately, the ability to function within this advanced stage of maturity leads to both optimized physician compensation administration and resource efficiency. Improved transparency and reliability create a better understanding and trust among providers, producing the ultimate goal of increased provider engagement.

If your organization is ready to take a strategic approach to physician compensation administration, we would love to partner and help you realize your full potential.

Contact us to learn more about how we can help you strengthen your physician compensation administration processes!