We work with health systems and medical groups to design tailored, market-based compensation strategies.

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Amidst the dynamic landscape of the healthcare industry, provider compensation strategies undergo continual evolution, driven primarily by the expansion of hospital-employed provider networks and the industry's transition towards value-based care. These transformative shifts necessitate the standardization of provider compensation structures and the development of models that excel in both fee-for-service and fee-for-value environments.

Our consultants are dedicated to partnering with provider enterprises to craft innovative provider compensation models or refine existing compensation plans, thereby cultivating effective strategies tailored to meet the demands of this evolving landscape. From comprehensive redesign projects to ongoing support in managing new or existing arrangements, our expertise in compensation strategy spans across diverse sectors of the healthcare industry, encompassing community hospitals, academic medical centers, critical access hospitals, single-specialty and multi-specialty private medical groups, private equity-backed PPMs, disrupters, retail medicine, healthcare startups, and beyond.

Specific examples of our compensation strategy work include the following:

  • Redesigning a health system's provider network to standardize compensation models across multiple specialties, clean up past practices and behaviors, incorporate panel size into primary care, allow for value-based incentives to play a more significant role, and develop an implementation strategy that allowed for change management to occur.
  • Forming a new compensation structure for a private practice as they joined a local health system under a group practice structure. The project included adapting their prior eat-what-you-kill model to a wRVU-based model, while still incorporating the necessary elements to address all the needs of a dynamic multi-specialty group.
  • Assisting with a health system’s alignment strategies, crafting compensation model structures for the various medical practices they were acquiring and onboarding. This support included performing financial due diligence, developing a model structure consistent with the health system’s past practices, and comparing to the practice’s prior financial performance to determine the economic impact.
  • Developed a compensation structure for a platform practice that private equity bought into that aligned the provider incentives with go-forward revenue streams and the goals of the new entity. This entailed change management support for the partners of the platform practice to understand the need for change, and it resulted in a successful model that other practices have been able to adopt as the platform grew.
  • Providing day-to-day support for multiple health systems as they work through provider compensation issues.

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We approach every engagement with a results-driven mindset, leveraging our deep industry expertise and data-driven insights to develop strategies that drive meaningful, measurable improvements in performance.
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We partner with clients to navigate the dynamic challenges of managing a high-performing physician enterprise.

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