Appropriately incentivizing your providers is imperative to drive strategy and alignment within your organization. But, what makes sense in theory, doesn’t always make sense in practicality.
When it comes to compensation management, the inconsistencies in data access and gaps between strategy and operations need to be narrowed significantly, if not eliminated, for your team and organization to be successful and competitive in today’s market.
Provider compensation strategy and automation technology can be your team’s bridge to success.
Provider Trust & Compensation Data Visibility
In order to trust the output and payments, providers need appropriate access to detailed data, compensation statements need to show transparency of calculation logic, and dashboards need to highlight opportunities for performance improvement.
“If a physician payment is wrong we would be the ones to have the conversation with the doctor. You know they appreciate that you brought it to them, but they also can’t help but question going forward and they start to scrutinize. Maintaining trust and credibility is huge,” shared a Revenue Administrator with a US national health system.
Manual processes and current ‘homegrown’ solutions fall short of providing this level of data access and transparency, increasing errors and reducing trust with providers.
The Broken Provider Compensation Management World
Many healthcare organizations are following a process that is cumbersome and error-prone, leaving administrators questioning accuracy and triple-checking work.
“Before ProCARE we spent so much time manually updating our excel workbooks and reports constantly with every comp change and personnel change,” shares Judy Newman, Compensation Manager with a national specialty care network, “having ProCARE has been a game changer for us.”
Without compensation automation, this routine compensation management (e.g., data maintenance, compensation calculation & validation, etc) is a heavily manual process creating a significant burden on operations teams, thus preventing the implementation of optimal compensation strategies and accurate and timely compensation delivery.
Contrary to industry trends and many consultancy recommendations, simply streamlining models is not the answer. Over-simplistic and streamlined models fall short of valuing providers’ efforts and instead give way to poor relations, retention, and performance issues within your team.
Hence, the compensation conundrum.
This compensation management conundrum can only be resolved through provider compensation automation technology that takes into consideration your organization’s unique and varied compensation models.
Unique & Complex Provider Compensation Models
There are a number of ways organizations may choose to compensate their providers. Effective compensation models that drive desired results may include team-based incentives, clawback and true-up logic, fair market evaluation, eligibility criteria, pay cycles with minimal lag in arrears, and the assessment of various operational, financial, and specialty-specific quality measures.
Unfortunately manual processes or simplified solutions are unable to manage complex models or exceptions .
“For quarterly payers, we do not have a negative accrual concept, so each quarter it resets, even if they don’t make production for the month,” Kathleen Ward, Director of Revenue Analysis for Pathway Vet Alliance shared with us. “Not having that visibility was a blind spot for us, so having it in a system like ProCARE that we can pull each month and see where a doctor stands is valuable.”
ProCARE’s Solution to Complex Provider Compensation Models
As the increasing challenges demand new technology, most vendors that have entered the market are only effective in addressing streamlined and more simplistic compensation arrangements.
However, ProCARE stands alone in the ability to tackle the most complex models and variable arrangements that support an optimal & optimized compensation strategy. ProCARE’s Portal does this by leveraging proven concepts and architecture in incentive compensation management (ICM) technology rooted in the Fortune 100/500 verticals.
Keeping up with the ever-evolving provider compensation and value-based care models requires a system that can replicate and fully automate your current model yet provide a framework to accommodate easily any variable change, exceptions, and future models.
“No matter what, I think any company is going to have some exceptions and if your system can handle the exceptions to the rule, they won’t be quite as burdensome on your support staff. ProCARE’s system has allowed us to do this,” shares Kathleen.
Organizations need one system that can handle all of the calculations and variable changes that do not require one-off processes and exceptions to be accommodated manually outside the system. With a robust provider compensation automation solution, you do not have to compromise how your strategic initiatives are factored into provider compensation.
It is time to empower your organization to focus on alignment and strategy and not get mired down in calculations month after month with no time or relief to act.
ProCARE for Health Systems, Hospital/Medical Groups & Specialty Provider Networks
ProCARE allows you to break the routine compensation management burden and bridge the gap between operations and strategy. By automating your current compensation processes and giving you the time and tools to optimize your compensation models, we alleviate the burden of compensation management and empower organizations to do more.
Schedule an Introductory Call
During our introductory call we will take a deeper dive into your current processes, discuss platforms for integration, identify your primary business objectives, answer any questions you have regarding compensation automation, and identify if we’d be a good fit for your organization
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The post was originally published on May 8, 2020.