Episode 102: How do you Align Provider Compensation with Health System Goals?

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2+ y ago 56:46

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Alex Kirkland and Andy Sobczyk join Mark Reiboldt to explore a prevalent provider compensation trend. As health systems continue to acquire private practices, they also inherit differing compensation structures with each acquisition. Alex and Andy unpack the concept of provider compensation misalignment.

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Episode Synopsis

Many healthcare provider practices lack an overarching provider compensation philosophy that aligns the health system's goals with the incentives for the providers. While there are many reasons this occurs, the solution is the same: develop a compensation philosophy for your organization to govern the compensation plans.

Alex and Andy use a physician compensation scatterplot (see page 5 of the case study) to illustrate how a decentralized compensation approach contributes to misalignment and variability.

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