P h ys i c i a n C o m p e n s a t i o n C o m m i t t e e C h a r t e r
AUTHORITY AND PURPOSE
The purpose of the Physician Compensation Committee is to refine the provider compensation methodology in light of objectives and performance expectations for _________, and to discuss and evaluate possible refinements to bring the compensation approach in line with those objectives and expectations.
PROCESS
Physician Compensation Committee members will participate in three to five planning meetings (over eight to twelve weeks) to clarify ____________performance expectations, to review current compensation plan performance in light of those expectations, to understand the perceptions of those affected by the current model(s), to review benchmark data, and to review proposed alternatives to the compensation approach. A thorough financial and legal review of all recommended changes will be completed prior to final Committee approvals. The Physician Compensation Committee will then propose the recommendations, including a transition strategy and communication strategy, for approval by the
____________Executive Leadership and Health System Board. Once approved, Physician
Compensation Committee members will participate in the communication and transition process.
COMMITTEE MEMBERSHIP
The Physician Compensation Committee should include two to four representatives from the management leadership and two to four physician members. The compensation committee should be limited to no more than six members.
Selection Criteria for Committee Members:
1. The committee should be comprised of 6-8 members. Although committee membership is limited to 6-8 individuals, the committee may seek data, analysis, or periodic participation from additional individuals as needed.
2. Physician Members : The committee should include two to four physicians with the following characteristics: a) Physicians should be generally respected by their peers and should be those considered opinion leaders within the physician network. These physicians should have demonstrated the ability to engage in thoughtful discussion, both affirmative and contrary, in issues relating to network operations, management, and strategy. b) Physicians should be highly productive relative to their peers. (Note: Physicians should not necessarily be the highest paid providers within the network, but those with the highest productivity in terms of patients seen, gross charge generation, RVUs, etc.
3. Administrative Leaders : The committee should include two to four members of the physician network administrative team, including: a) The network executive or leader of the physician network b) At least one additional member of the network or hospital administrative team, i.e., CMO, HR representative, Controller or CFO.
4. Additional Participants : Additional participants may be invited to attend specific meetings depending upon the content being discussed. Additional participants may include the hospital
CEO, CFO, HR representative, CMO, or legal counsel.
Responsibilities of the Committee:
1. Develops and remains committed to the network mission, vision, and values
2. Understands the need to develop and maintain a standardized employment contract for all physicians
Physician Compensation Committee Charter Halley Consulting Group, Inc. (614-899-7325)

3. Understands the need to balance current and future physician compensation offers with the realities of financial viability
4. Understands the current financial position, as well as the need to provide fair market compensation and benefits to physicians, while motivating high productivity, service, quality care, and promoting organizational viability
5. Understands the economic reality that a productivity based compensation methodology is needed to truly match provider productivity with compensation
6. It must be stressed that all Committee members hold all discussions of this committee in the strictest of confidence until a final recommendation is reached and forwarded to the governance council for approval!
ACCOUNTABILITY
The Physician Compensation Committee will meet under the authority of the Network Operations Council.
ANTICIPATED OUTCOMES
The anticipated outcomes of the Physician Compensation Committee process are as follows:
 Modifications to the compensation approach (if warranted) that are based upon clearly defined objectives/tenets and performance expectations.
 Support of several physician leaders who will “sponsor” the changes with their peers.
 A clear education approach and change process to facilitate a smooth transition to the modified compensation approach.
 A process for annual review of the compensation approach and its effectiveness in meeting clearly defined objectives.
 A compensation approach that will assure appropriate provider productivity, provide market competitive compensation, ensure quality service, and promote practice financial viability.
Physician Compensation Committee Charter Halley Consulting Group, Inc. (614-899-7325)