Contributed by Matt BonDurant
Provider compensation is the heart of provider engagement and shapes the direction of organizational strategies. In recent times, due to integrations and private equity acquisitions, managing compensation has become quite a complex task for many organizations. Chances are, your organization deals with a wide array of specialties and provider types, possibly spread across diverse regions.
Now, how do you make this convoluted process work for you?
Imagine it as steering a ship – you need the right technical infrastructure to ensure everyone is on the same course.
Whether your goal is simply maintaining the status quo or reaching the pinnacle of success, a well-thought-out compensation strategy is crucial. Dynamic organizations must consider various compensation elements to value the contributions of diverse providers in unique markets and situations.
Speaking of summits, they’re everywhere – in both personal and professional endeavors. These summits come in all shapes and sizes, whether it’s raising kind-hearted children or setting a personal record in a local 5k race. Just like climbing a mountain, it takes time and effort to achieve healthcare ideals.
To conquer provider compensation and reach your strategic goals, you must constantly:
- Value All Aspects: Your model should accommodate the unique contributions of providers, gaining their trust and engagement.
- Adapt and Evolve: Continuously tweak your compensation model to align with your strategic goals.
- Execute: Automate existing models and data sources, while continually improving and implementing new models.
As you journey through the healthcare landscape, you’ll encounter changing seasons, routes, and equipment. Similarly, your compensation team may prepare data but lack the necessary time or specific calculations for informed decisions.
In today’s competitive healthcare environment, your compensation model must recognize the value of the care your providers offer. This is essential for gaining support and advancing strategic initiatives, such as expanding service lines. Achieving value isn’t a one-step process – it’s an ongoing metaphysical journey. Therefore, your infrastructure should provide the tools needed for modeling and adapting without requiring custom development.
Think of your equipment as high-tech, sturdy, and easily adaptable.
Key to this is integrating data from various sources, including payroll, practice management, internal databases, electronic health records, shift trackers, and population health management tools. Data falls into categories such as organizational hierarchy, provider demographics, reference tables, and transactional data.
While you can climb mountains with old tools, it’s far more challenging and risky.
Even the best models and organizations require adaptation. You can’t stay at the summit forever; you must come back down, regroup, and try new routes or conquer new mountains. To spend more time at the top, set up a base camp with access and resources, much like an alpine meadow with protection from the elements.
In your journey to the summit, don’t be restrained. Automate compensation calculations with a rules engine and provide transparency through reporting. Ensure that answers to operational and financial questions, as well as compensation details, are easily accessible with the right toolkit.