Download - Physician Comp Modeling Tool
Overview
Compensation Pathway™
Page 2
Actual Production and Compensation Alignment
2
0%
50%
100%
150%
200%
250%
0% 50% 100% 150% 200% 250%
% o
f M
GM
A C
om
p
% of MGMA WRVU's
Low Prod – High Comp
Low Prod – Low Comp High Prod – Low Comp
High Prod – High Comp
Actual
Overall
Alignment
Page 3
LH: Low Production / High Compensation
3
*L
L1 L
L2
H
L
H
H2
H
H1L
H
Com
pe
nsation
Production
• Produce less
• Paid more
2 Risk
1 Profit
4 Risk
4 Profit
6 Risk
5 Profit
5 Risk
6 Profit
3 Risk
3 Profit1 Risk
2 Profit
• Produce even less
• Paid less
• Produce less
• Paid even less
Median Compensation
Med
ian
Pro
du
ctio
n
Low
Low
Hig
h
High
• Produce more
• Paid even more
• Produce even more
• Paid more
• Produce more
• Paid less
2. Higher Producers1. Lower Producers
3. Higher
Paid
4. Lower
Paid
Page 4
HH1: High Production / High Compensation
L
L1 L
L2
H
L
H
H2
H
H1L
H
Com
pe
nsation
Production
• Produce less
• Paid more
2 Risk
1 Profit
4 Risk
4 Profit
6 Risk
5 Profit
5 Risk
6 Profit
3 Risk
3 Profit1 Risk
2 Profit
• Produce even less
• Paid less
• Produce less
• Paid even less
Median Compensation
Med
ian
Pro
du
ctio
n
Low
Low
Hig
h
High
• Produce more
• Paid even more
• Produce even more
• Paid more
• Produce more
• Paid less
2. Higher Producers1. Lower Producers
3. Higher
Paid
4. Lower
Paid
Page 5
HH2: High Production / High Compensation
L
L1 L
L2
H
L
H
H2
H
H1L
H
Com
pe
nsation
Production
• Produce less
• Paid more
2 Risk
1 Profit
4 Risk
4 Profit
6 Risk
5 Profit
5 Risk
6 Profit
3 Risk
3 Profit1 Risk
2 Profit
• Produce even less
• Paid less
• Produce less
• Paid even less
Median Compensation
Med
ian
Pro
du
ctio
n
Low
Low
Hig
h
High
• Produce more
• Paid even more
• Produce even more
• Paid more
• Produce more
• Paid less
2. Higher Producers1. Lower Producers
3. Higher
Paid
4. Lower
Paid
Page 6
HL: High Production / Low Compensation
L
L1 L
L2
H
L
H
H2
H
H1L
H
Com
pe
nsation
Production
• Produce less
• Paid more
2 Risk
1 Profit
4 Risk
4 Profit
6 Risk
5 Profit
5 Risk
6 Profit
3 Risk
3 Profit1 Risk
2 Profit
• Produce even less
• Paid less
• Produce less
• Paid even less
Median Compensation
Med
ian
Pro
du
ctio
n
Low
Low
Hig
h
High
• Produce more
• Paid even more
• Produce even more
• Paid more
• Produce more
• Paid less
2. Higher Producers1. Lower Producers
3. Higher
Paid
4. Lower
Paid
Page 7
LL2: Low Production / Low Compensation
L
L1 L
L2
H
L
H
H2
H
H1L
H
Com
pe
nsation
Production
• Produce less
• Paid more
2 Risk
1 Profit
4 Risk
4 Profit
6 Risk
5 Profit
5 Risk
6 Profit
3 Risk
3 Profit1 Risk
2 Profit
• Produce even less
• Paid less
• Produce less
• Paid even less
Median Compensation
Med
ian
Pro
du
ctio
n
Low
Low
Hig
h
High
• Produce more
• Paid even more
• Produce even more
• Paid more
• Produce more
• Paid less
2. Higher Producers1. Lower Producers
3. Higher
Paid
4. Lower
Paid
Page 8
LL1: Low Production / Low Compensation
L
L1 L
L2
H
L
H
H2
H
H1L
H
Com
pe
nsation
Production
• Produce less
• Paid more
2 Risk
1 Profit
4 Risk
4 Profit
6 Risk
5 Profit
5 Risk
6 Profit
3 Risk
3 Profit1 Risk
2 Profit
• Produce even less
• Paid less
• Produce less
• Paid even less
Median Compensation
Med
ian
Pro
du
ctio
n
Low
Low
Hig
h
High
• Produce more
• Paid even more
• Produce even more
• Paid more
• Produce more
• Paid less
2. Higher Producers1. Lower Producers
3. Higher
Paid
4. Lower
Paid
Page 9
Compensation Pathway™
Compensation Pathway™ (Physician Compensation Modeling) is a real-time compensation
modeling tool that allows healthcare executives to facilitate planning and implementation of
productivity-based compensation plans by specialty.
Comp
% of
Phys WRVUs
% of
Phys
Comp/
WRVU
% of
Phys
High (Above 120% Median) 25 28% 28 32% 21 24%
Normal (80% - 120% of Median) 43 49% 37 42% 55 63%
Low (Below 80% Median) 20 23% 23 26% 12 14%
Total 88 100% 88 100% 88 100%
0%
50%
100%
150%
200%
250%
1 4 7
10
13
16
19
22
25
28
31
34
37
40
43
46
49
52
55
58
61
64
67
70
73
76
79
82
85
88
Comp / WRVU
% of MGMA Median 120% 80%
High21 Phys
Normal55 Phys
Low12 Phys
High21 Phys
Normal55 Phys
Low12 Phys
Comp
% of
Phys WRVUs
% of
Phys
Comp/
WRVU
% of
Phys
High (Above 120% Median) 25 28% 28 32% 21 24%
Normal (80% - 120% of Median) 43 49% 37 42% 55 63%
Low (Below 80% Median) 20 23% 23 26% 12 14%
Total 88 100% 88 100% 88 100%
0%
50%
100%
150%
200%
250%
1 4 7
10
13
16
19
22
25
28
31
34
37
40
43
46
49
52
55
58
61
64
67
70
73
76
79
82
85
88
Comp / WRVU
% of MGMA Median 120% 80%
High21 Phys
Normal55 Phys
Low12 Phys
High21 Phys
Normal55 Phys
Low12 Phys
The compensation model is
built within the context of
the physician’s current
experience. In the example
below, the client’s 88
physicians were analyzed
and compared to
benchmark compensation
per wRVU.
Page 10
Compensation Pathway™
Page 11
Compensation Pathway™ – Unaligned Physicians
Page 12
Compensation Pathway™ – Aligned Physicians
Page 13
Equation
2650 S. Decker Lake Blvd. Ste 122
Salt Lake City, UT. 84119
801.783.4100
www.equationconsulting.com
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