Physician Compensation Tool

1. Strengths, weaknesses and compensation system features

A) What is good or positive about your practice’s current compensation system? List three strengths or positive features of your system in the space below.

B) What are the primary weaknesses of your practice’s current compensation system?

Identify the key characteristics of your current compensation system from the following: Yes No
Pure cost accounting of all expenses ( e.g., to the penny)
“Modified” cost accounting of some (but not all) expenses
We pay expenses then divide what’s left among group physicians
We track cash collections on a per physician basis
Allocate collections on the basis of professional service charges
Equal share component in allocation of practice revenues
Equal share component in allocation of practice expenses
Use RVUs in allocating revenues, expenses or both
Use market norms and benchmarking in compensation

2. Compensation system goals

A) Knowing your practice and its physicians, what are the key goals or values that should underlie the compensation system for your practice? Put another way, what should your practice’s compensation system encourage and/or reward?

Identify the key characteristics of your current compensation system from the following: Yes No
Do the physicians in your group share these goals?
Does your current system promote these goals?

3. Historical change

A) List three major events that have affected your practice in the past three to five years. “Major events” might include the addition or resignation of physicians to the practice, significant changes in work volume by physicians in the practice, the retirement or death of a physician leader, the consummation of a merger or affiliation, the loss (or addition) of a major third party contract and others.

Do the physicians in your group share these goals? Increased Decreased Stayed the same
Measured on a per physician FTE basis, have your practice’s revenues increased, decreased or stayed about the same over the past three years?
Measured on a per physician FTE basis, have your practice’s expenses/nonphysician operating costs increased, decreased or stayed about the same over the past three years?

4. Physician demographics

Indicate the number of physicians in the following age ranges in your practice:







5. Call coverage

Do the physicians in your group share these goals? Yes No
Does your practice allow physicians to cease some or all on-call obligations under certain circumstances (e.g., upon reaching age 55 or 60, at some other age or under other circumstances)?
If yes, is there an associated cost to the physician who is allowed to cease call (e.g., the physician is subject to a change in compensation or other benefits?

6. Outside income and activities

Do the physicians in your group share these goals?

A) Is income from outside activities treated as practice income (and therefore subject to some form of overhead assessment)?



B) If no, what portion of group physician’s make substantially more money than others through outside activities?





C) Are there physicians in your group who spend a large amount of time on outside (nonclinical service) activities for little or no direct compensation?



7. Time off

Identify the key characteristics of your current compensation system from the following: Yes No
Does your practice have physicians who take widely differing amounts of vacation or other time away from the practice?
Does your practice have a stated policy regarding the number of weeks of vacation and/or timeoff allowed to be taken by each physician?
Does your group enforce this policy?

8. Part-time/Partial retirement physicians

Do the physicians in your group share these goals?

A) Does your practice have a written part time/partial retirement policy?



B) If yes, does that policy treat the part time/partial retirement physician largely the same, better or worse than the groups other physicians for compensation plan purposes?



9. Authority over practice resources and expenses

Do the physicians in your group share these goals?

A) Do individual physicians within your practice have largely independent authority to incur additional expenses (e.g., to hire an additional staff person such as a Nurse Practitioner or Physicians Assistant, purchase computer hardware for use in their personal office, etc.)?



B) If yes, does the group pay for those additional expenses or are they assigned to the individual physician?


C) Does each physician benefit from largely the same practice resources (e.g., in the form of staff support and others)?


D) If no, is there a rational reason for why some physicians have more resources, while others have less?


10. Performance feedback mechanisms

Identify the key characteristics of your current compensation system from the following: Yes No
Does your practice regularly provide benchmark information to each physician indicating their approximate production level based on MGMA or other data?
Does your practice regularly provide production reports to physicians?
If yes, what type of information is provided in those reports?
Production defined as charges
Production defined as cash collections
Production measured in patient visits
Production measured in RVUs
Does your practice have agreed upon expectations (either formally or informally) regarding physician production levels (e.g., we want everyone to be at the 50th percentile of MGMA data for the specialty or above)?

11. Practice culture

Approximately what portion of the physicians in your group do you believe would agree with the following statements? Under 25% 25–50% 50–75% Over 75% Don’t know
(a) Being part of a group requires that there must be some sharing of revenues among physicians in the group in order to promote a group (rather than solo practice) mentality
(b) Being part of a group requires that there must be some sharing of expenses among physicians in the group in order to promote a group (rather than solo practice) mentality.
(c) It is fair for a group to establish certain minimum performance expectations regarding clinical work levels and/or dollars generated by each physician in the group.
(d) Being part of a group practice requires that every physician must be willing to accept a reasonable level of compromise regarding practice operations (i.e., number of support staff, location and use of nonphysician staff, etc.)

12. Compliance

Identify the key characteristics of your current compensation system from the following: Yes No
Do you feel comfortable that your practice treats revenues from designated health services appropriately to comply with the Stark law?

Personal Details

Do you check your patients insurance eligibility status?

Email Setup
1. Strengths, weaknesses and compensation system features
A) What is good or positive about your practice’s current compensation system? List three strengths or positive
features of your system in the space below.
B) What are the primary weaknesses of your practice’s current compensation system?
Identify the key characteristics of your current compensation system from the following: Answer
Pure cost accounting of all expenses ( e.g., to the penny)
“Modified” cost accounting of some (but not all) expenses
We pay expenses then divide what’s left among group physicians
We track cash collections on a per physician basis
Allocate collections on the basis of professional service charges
Equal share component in allocation of practice revenues
Equal share component in allocation of practice expenses
Use RVUs in allocating revenues, expenses or both
Use market norms and benchmarking in compensation
2. Compensation system goals
A) Knowing your practice and its physicians, what are the key goals or values that should underlie the
compensation system for your practice? Put another way, what should your practice’s compensation system
encourage and/or reward?
Identify the key characteristics of your current compensation system from the following: Answer
Do the physicians in your group share these goals?
Does your current system promote these goals?
3. Historical change
A) List three major events that have affected your practice in the past three to five years.
“Major events” might include the addition or resignation of physicians to the practice, significant changes in
work volume by physicians in the practice, the retirement or death of a physician leader, the
consummation of a merger or affiliation, the loss (or addition) of a major third party contract and others.
Identify the key characteristics of your current compensation system from the following: Answer
Measured on a per physician FTE basis, have your practice’s revenues increased, decreased or
stayed about
the same over the past three years?
Measured on a per physician FTE basis, have your practice’s expenses/nonphysician operating costs
increased, decreased or stayed about the same over the past three years?
4. Physician demographics Answer
Indicate the number of physicians in the following age ranges in your practice:
5. Call coverage Answer
Does your practice allow physicians to cease some or all on-call obligations under certain
circumstances (e.g., upon reaching age 55 or 60, at some other age or under other circumstances)?
If yes, is there an associated cost to the physician who is allowed to cease call (e.g., the
physician is subject to a change in compensation or other benefits?
6. Outside income and activities Answer
A) Is income from outside activities treated as practice income (and therefore subject
to some form of overhead assessment)?
B) If no, what portion of group physician’s make substantially more money than others
through outside activities?
C) Are there physicians in your group who spend a large amount of time on outside
(nonclinical service) activities for little or no direct compensation?
7. Time off Answer
A) Does your practice have physicians who take widely differing amounts of vacation or other time
away from the practice?
B) Does your practice have a stated policy regarding the number of weeks of vacation and/or timeoff
allowed to be taken by each physician?
C) Does your group enforce this policy?
8. Part-time/Partial retirement physicians Answer
A) Does your practice have a written part time/partial retirement policy?
B) If yes, does that policy treat the part time/partial retirement physician largely the same,
better or worse than the groups other physicians for compensation plan purposes?
9. Authority over practice resources and expenses Answer
A) Do individual physicians within your practice have largely independent authority to incur
additional expenses (e.g., to hire an additional staff person such as a Nurse Practitioner or
Physicians Assistant, purchase computer hardware for use in their personal office, etc.)?
B) If yes, does the group pay for those additional expenses or are they assigned to the individual
physician?
C) Does each physician benefit from largely the same practice resources (e.g., in the form of
staff support and others)?
D) If no, is there a rational reason for why some physicians have more resources, while others
have less?
10. Performance feedback mechanisms Answer
Does your practice regularly provide benchmark information to each physician indicating their
approximate production level based on MGMA or other data?
Does your practice regularly provide production reports to physicians?
Production defined as charges
Production defined as cash collections
Production measured in patient visits
Production measured in RVUs
Does your practice have agreed upon expectations (either formally or informally) regarding
physician production levels (e.g., we want everyone to be at the 50th percentile of MGMA data for the
specialty or above)?
11. Practice culture Answer
A) Being part of a group requires that there must be some sharing of revenues among physicians in
the group in order to promote a group (rather than solo practice) mentality
%
B) Being part of a group requires that there must be some sharing of expenses among physicians in
the group in order to promote a group (rather than solo practice) mentality.
%
C) It is fair for a group to establish certain minimum performance expectations regarding clinical
work levels and/or dollars generated by each physician in the group.
%
D) Being part of a group practice requires that every physician must be willing to accept a reasonable
level of compromise regarding practice operations (i.e., number of support staff, location and use
of nonphysician staff, etc.)
%
12. Compliance Answer
Do you feel comfortable that your practice treats revenues from designated health services
appropriately to comply with the Stark law?


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