Primary Care Compensation Plan

PresentationVictor Esan, MPM,MBA

G2 Group

04/15/23

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Physician Involvement

Physicians should always provide valuable feedback, and they should continue to assist in formulating measurable incentive metrics and clinical compensation is based on external benchmark sources such as MGMA & AMGA

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Primary Care Compensation Plan Philosophy

The mission and vision of VCG Consulting Partners is to provide appropriate compensation packages for the appropriate work of physicians while exhibiting quality care and putting patients first.

This is done by emphasizing the measurement of quality metrics and rewarding benchmark performance.

Primary Care Compensation Plan Principles of the Plan Productivity portion of the plan designed

to approximate 90% of 50th percentile production and 50th percentile compensation, for volume incentive productivity over 60th percentile will be compensated at a rate of 100% of median.

By having 90% of median compensation the balance of 10% helps fund part of the incentive allocation pool, the remaining portion of the allocation pool is funded by the medical group or hospital in question.

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Incentive Pool Qualification

This is based on a minimum production level of 80% of median, this will qualify you for 50% incentive pool.

Every additional percentage of production will qualify you for additional incentive.

Maximum incentive will be based of 100% of median production.

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Incentive Pool Breakdown

$9,000 ( maximum attainable, 30% of pool) quality incentive

$15,000 ( maximum attainable,50% of pool) patient satisfaction incentive ( open panel requirement subject to review by Administrator )

$6,000 ( maximum attainable, 20% of pool) Citizenship and Meaningful use incentive

The total incentive opportunity is $30,000. Volume incentive for productivity over 60th

percentile productivity.

Incentive Compensation Committees

Patient Satisfaction Committee :To decide which Patient satisfaction survey questions will be attributed to the performance of the Physician. (representative from each specialty will be desired)

Quality Metrics and Expense allocation Committee : This will be set up for each specialty , aimed at identifying measurable quality metrics to be used and appropriate expense allocation metrics.

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Other issues in model

Physicians to receive 10% of the RVU value only from NP’s personally supervised.

Expense factor (shared cost savings) this is subject to review by Physicians

75% of savings in relation to average expense to be credited to physician.

75% of overage in relation to average expense to be deducted from physician compensation

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Primary Care Compensation Plan

Max Calculated FM IM Peds

Area Potential Score Potential 50th Comp 197,574 210,301 192,928

Quality Metrics 9,000 62.46% 5,621 50th RVU 4,915 4,771 4,989

Patient Satisfaction 15,000 75.00% 11,250 Ratio 40.20 44.08 38.67

Citizenship 6,000 100.00% 6,000 90% 36.18 39.67 34.80

Total 30,000 22,871 19,757 21,030 19,293

FTE Factor Actual/Median RVU

Ratio Production Factor Clinic Comp Expense Incentive Total Comp

Family Medicine 100% 141% 100% 251,152 (15,206) 29,854 $ 265,800

Family Medicine 100% 104% 100% 185,366 (6,246) 22,871 $ 201,992

Family Medicine 100% 69% 0% 122,719 (4,576) - $ 118,142

Family Medicine 72% 42% 0% 53,912 195 - $ 54,107

Family Medicine 100% 124% 100% 221,426 (7,554) 26,551 $ 240,424

Family Medicine 100% 107% 100% 191,777 13,568 23,257 $ 228,602

Family Medicine 100% 142% 100% 253,839 19,820 30,153 $ 303,811

Family Medicine 56% 58% 0% 57,767 (5,597) - $ 52,170

Internal Medicine 100% 101% 100% 192,629 (8,481) 22,871 $ 207,020

Internal Medicine 100% 85% 63% 161,350 8,481 14,295 $ 184,125

Internal Medicine 50% 154% 100% 146,201 7,438 16,555 $ 170,195

Internal Medicine 50% 117% 100% 111,625 (1,841) 12,713 $ 122,497

Pediatrics 100% 119% 100% 207,054 (4,869) 25,617 $ 227,802

Pediatrics 100% 124% 100% 215,964 (4,997) 26,607 $ 237,575

Pediatrics 100% 126% 100% 220,486 2,602 27,110 $ 250,198

Pediatrics 100% 119% 100% 207,865 (1,737) 25,708 $ 231,836

Pediatrics 100% 124% 100% 216,128 6,352 26,626 $ 249,106

Pediatrics 100% 115% 100% 199,977 2,648 24,831 $ 227,456

3,217,238 (0) 355,619 $ 3,572,858

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Primary Care Compensation Plan

Using this model and producing at the 50th percentile with the potential average anticipated allocation of incentive bonus,

potential compensation will be in excess of 50th percentile

FM IM PEDS

200,688 212,142 196,506 Compensation + Anticipated Incentive Bonus

197,574 210,301 192,928 AMGA 50th Percentile

Using this model and producing at the 50th percentile and with a maximum allocation of incentive bonus,

potential compensation will be 60th percentile approx

FM IM PEDS

207,816 219,271 203,635 Compensation + Maximum Incentive Bonus

210,224 219,500 207,124 AMGA 60th Percentile