Goals:

• Reduce losses from employed physician practices
• Establish a plan that was uncomplicated, consistent and transparent
• Align physician compensation with financial sustainability
• Provide a platform and incentive mechanism for organizational improvement

Results:
Working through a physician-led steering committee, developed a compensation model based on physician productivity that also reflected:

• Incentives for reduced expenses
• Reasonable allowance for hospital-based indirect costs
• Practice profitability triggers designed to eliminate losses over a three year period