Refresh or Overhaul Your Compensation Plan?
Changing your physician compensation plan can be a daunting challenge. It is difficult to know
when to take on such an endeavor. The following guide can help your group determine if it is
time to refresh your compensation plan, or if it is time for a complete overhaul.
It is time to refresh your compensation plan if:
 It has been more than two years since the group assessed the plan and how well it
reflects the culture and goals of the group
 Your group has added a significant number of physicians or has added new specialties
 Payers are offering more incentives for non-productivity performance, including pay for
performance
 Local competition for physicians has increased
 The group is implementing new initiatives, including patient centered medical home,
electronic medical records, or new clinical services
 Physicians are unhappy with the current compensation
It is time to overhaul your compensation plan if:
 Your multispecialty group has more than three compensation models, or your single
specialty group has more than one model
 You have joined an ACO or payers have dramatically changed the way they are paying
your group
 The group is not meeting its goals for clinical or financial performance
 Physicians are leaving your group to join competitors in the market
 Your medical group has merged with another group or has affiliated with a hospital/
health system
 Physician dissatisfaction with the current compensation model dominates discussion at
leadership meetings
Developing an Effective Physician Compensation Plan in an Accountable Care World
Marc G. Mertz, MHA, FACMPE
Vice President
THE CAMDEN GROUP
100 N. Sepulveda Blvd., Suite 600
El Segundo, CA 90245
310.320.3990 x3974 l 310.606.5811 (F)
mmertz@TheCamdenGroup.com