Incentive-Based Physician Compensation Models

Measuring productivity is important for determining appropriate physician compensation, as indicated by the current emphasis on benchmarking. A combination of benchmarking and individual profiling data may prove useful for developing productivity-based compensation plans. However, while tying physician compensation to multiple indicators is prudent, it is also cumbersome, since indicator values may not be comparable. A compensation model that scales indicators to a common measure, such as a relative value scale, may allow the visual representation of resource utilization, and peer comparisons can assist in adjusting to the accountability demanded by managed care.