STEP 4: JOB OFFER AND COMPENSATION MODELS FOR PHYSICIANS
Each compensation model has its advantages and potential drawbacks, and the choice often depends on the physician’s specialty, practice setting, personal preferences, and career goals.
Fixed Salary: Physicians receive a predetermined annual salary regardless of the number of patients seen or procedures performed Salary Plus Bonus: A bonus salary is provided along with potential bonuses based on performance metrics such as patient satisfaction, quality of care, or financial targets. SALARY-BASED COMPENSATION
PRODUCTIVITY-BASED COMPENSATION
Fee-for-Service (FFS): Physicians are paid based on number and type of services they provide. Each service or procedure has a set fee. Relative Value Unit (RVU) Model: Compensation is based on the RVUs assigned to each service or procedure, which account for the time, skills, and effort required. Payments are made according to the total RVUs generated.
PERFORMANCE-BASED COMPENSATION
Quality Incentive Programs: Physicians receive bonuses or additional compensation for meeting or exceeding quality benchmarks and patient outcomes. Value-Based Compensation: Payments are linked to the value of care provided, focusing on efficiency, outcomes, and patient satisfaction rather than volume Per Member Per Month (PMPM): Physicians or practices receive a set amount of money per enrolled patient per month, regardless of the number of services provided. This model encourages cost-effective care management. CAPITATION
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