Using nonqualified benefits to recruit and retain physicians.
Financial managers of healthcare organizations often are charged with developing incentives that encourage physicians to join or stay with the organization. Standard incentives such as higher salaries and qualified retirement plans may not attract physicians, because much of a physician's salary increase may be lost to taxes, and regulations limit amounts that physicians can contribute to and receive from qualified retirement plans. Incentives that may be valued more highly by physicians include Section 162 bonus plans, which can allow the healthcare organization to compensate for the fact that bonuses are taxable to physicians; split-dollar welfare benefit plans, which allow the healthcare organization and the physician to split the premium payments, cash values, and death proceeds of a life insurance policy; and discounted stock option plans, which can increase the physician's compensation significantly if the shares appreciate in value by the time they are exercised.
Nolan
M
M
Todd Organization, Inc., Bethesda, Maryland, USA. nolanm@toddorg.com
D006788:Hospitals, Voluntary / Q000191:economics; D007449:Investments; D008505:Medical Staff, Hospital / Q000191:economics* / Q000600:supply & distribution; D010415:Pensions; D010558:Personnel Loyalty; D010560:Personnel Selection / Q000191:economics*; D010816:Physician Incentive Plans / Q000191:economics*; D012456:Salaries and Fringe Benefits; D019464:Tax Exemption; D014481:United States