From the November 2019 issue of HealthCare Business News magazine
Future trajectory
Compensation and productivity changes are not caused by any single factor. On the productivity front, concerns about physician burnout and limitations of electronic health records merit attention. The aging physician workforce and increasing prevalence of part-time physicians will accentuate recruitment and retention needs, which will exert upward pressure on compensation. Notably, the compensation values represented here are for clinical compensation and do not reflect dollars from sign-on bonuses or loan forgiveness, which are tabulated separately so as not to impact clinical compensation per wRVU metrics. Ultimately, compensation may be somewhat higher and the financial burdens for medical groups somewhat greater.
The largest unknown factor affecting compensation is the real impact of value-based care. It is possible that wRVU production has flattened because growth in utilization of services has been restricted to keep costs down. Similarly, physicians may be receiving more pay-for-performance incentives not linked directly to wRVU production. These incentives increase compensation and our calculation of compensation per wRVU in the survey data. As we work to collect future survey data in more granular detail, we hope to have more informed answers to questions around how value-based care impacts pay. In the near-term, an increased focus on practice costs and day-to-day performance will be key.
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AMGA Consulting assists healthcare organizations in navigating the changing industry environment. AMGA Consulting builds clients’ organizational capabilities through effective governance, operational improvement, strategic alignment, talent management, provider compensation design, fair market value analysis and total rewards solutions. To learn more, visit www.amgaconsulting.com.
About the Authors: Fred Horton is president of AMGA Consulting. Fred has over 20 years of experience working inside the healthcare industry. He has the ability to efficiently distill complex issues and create realistic plans that lead to clients’ success. He brings his operational, strategic, and financial acumen to his clients in order to create effective and market-sensitive solutions to their challenges.
Wayne Hartley is the growth and service line development officer and VP consulting services at AMGA Consulting. He has worked in the healthcare industry for 20 years, beginning in operations and later focusing on consulting in physician services. He has spoken at national and regional conferences on FMV, physician transactions, population health, and healthcare industry trends for organizations including AHLA (American Health Lawyers Association), AMGA and HFMA (Healthcare Financial Managers Association).
Elizabeth Siemsen is a director with AMGA Consulting. Elizabeth brings more than 20 years of experience in healthcare with broad exposure to all elements of a healthcare system, including physician group practices. Most recently, she was a member of the senior leadership team of Mercy Hospital-Allina Health, and led planning and performance improvement projects for the hospital and across the system. Liz began her healthcare career as a financial analyst in decision support before expanding into performance improvement, operations and leadership roles for Allina Health and HealthEast in the Minneapolis/St. Paul area.
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