AMGA’s medical group compensation and productivity survey surfaced concerning, unsustainable trends. Our take on these insights:

• Challenge: wRVU models have flaws (this is no secret). wRVUs do not equal dollars until they make it through the revenue cycle, and insurance companies adjust charges but not wRVUs. You may be overpaying for charges that involve multiple procedures. 
  
  Solution: Adopt a comp process that understands these adjustments and takes them across claims (not just at a line item charge level).
  
  
• Challenge: The survey shows productivity increases drive comp increases…our AAPCP conference poll revealed that 90% of comp is production based, yet industry leaders felt it should be less than 75%.
  
  Solution: Evaluate models and determine what’s driving incentive and if they align with strategic objectives. Implement automation like ProCARE for deeper capabilities and an opportunity to close the gap.
  
  
• Challenge: There is a gap between value and compensation. Incentives should be meaningful and align with strategy, not vanilla so they’re easy to calculate.
  
  Solution: Look for a technology partner that can give you the best of both worlds.
  
  
• Challenge: Incentive growth is flat outside of retention bonuses and student loan forgiveness.
  
  Solution: Get creative (and even complex) with incentive comp plans, with the support of the right technology.

It’s time to move beyond the status quo. Comp models should: reflect the reality of revenue cycles, incentivize strategic goals, and embrace creativity.

With the right technology partner, healthcare organizations can implement compensation models that are both sophisticated and aligned with their unique needs.

Let’s schedule a conversation to discuss!