title: Physician compensation in transition. The market-based alternative.
abstract: Current compensation systems are not working for the new and emerging models of health care systems. While there is not a perfect solution, there are alternatives that should be considered. The dynamics that are influencing compensation include: consolidation and integration are creating tighter group infrastructures than have previously existed--groups must place greater emphasis on the manner in which physicians function in support of common goals; the regulatory environment has increased due to the Stark legislation; the marketplace is a force in super-specialties and primary care physician compensation; and managed care is demanding new methods of compensation. Market-based compensation is attracting interest because of the complexity of external pressures. It is defined as the relationship between productivity and compensation and utilizes external benchmarks. Future market-based compensation plans will have five main components: productivity, as measured by dollars or RVUs; resource utilization, as service becomes a cost that is debited against capitated revenue; outcomes will be fundamental; service ratings will be instrumental; and physician "citizenship" will garner a higher profile.
authors.affiliation: Management Consulting Services, East Englewood, CO 80112, USA.
authors.forename: R C
authors.initials: RC
authors.lastname: Bohlmann
mesh_terms: D017598:Efficiency, Organizational / Q000191:economics; D006123:Group Practice / Q000191:economics*; D007182:Income / Q000706:statistics & numerical data; D017146:Models, Organizational; D009937:Organizational Objectives; D010816:Physician Incentive Plans / Q000191:economics* / Q000706:statistics & numerical data / Q000639:trends; D012456:Salaries and Fringe Benefits / Q000706:statistics & numerical data; D014481:United States