Performance Pay for Mgoa Physicians

Case Study- Performance Pay for MGOA Physicians-

I found this case study very interesting because I have never given much thought to a compensation plan for physicians. I can understand both sides- the concerns of the physicians and the intent of Dr. Rubash and Dr. Herndon.

Selling the Plan to the Doctors

The overarching benefit of the new plan is that the plan will enable MGOA to achieve financial stability which in turns will better enable the group to achieve the group's mission and commitments.

Selling Points of the New Plan

* Ability to have control over salary and bonus. The more productive the doctor the greater the compensation. ( some of the more productive doctors may disagree with this point)

* Doctors who had a higher than average share of poorly-insured patients would have an avenue for reimbursed by development fund tax.

* Each doctor would carry his/her own weight. Doctors who had higher costs and who elected to devote more time to non-clinical activities would be expected to reimburse the group for their deficit. (Research Doctors may see this as a negative however the benefit is knowing the impact of lower clinical productivity as well as the compensation adjustment periods. Doctors could decide to devote more hours to non-clinical activities for a certain period and make it up in production in subsequent periods.

* Plan enables group to build an endowment to support non-clinical programs

Overall, Dr. Rubash should sell the plan by reiterating the points that he made in his original presentation to the group. I do feel that Dr. Rubash should listen to the concerns of the doctors and possibly agree to a review period, say after 1 year, to assess how the new plan is working.