Out with the Old
Presently, most physician compensation arrangements are based on productivity as measured by wRVUs or gross revenue. These arrangements incentivize physicians to see as many patients and perform as many procedures as possible. While a growing number of arrangements tie some portion of payments to specific performance measures, compensation arrangements fully embracing value-based methodology are rare.
In the transition from fee-for-service to value-based reimbursement, restructuring physician incentives is critically important for achieving successful outcomes. Identifying the right incentives, however, can be a guessing game rather than a well-founded strategy.
In with the New
Whether fine-tuning or totally redesigning, PYA helps organizations revamp their compensation models to better align with alternative payment models, including the new Merit-Based Incentive Payment System, or MIPS. PYA successfully involves physicians in all phases of the process, ensuring their concerns are addressed.
PYA blends its varied experience—our firm issues more than 1,000 fair market valuation and commercial reasonableness opinions annually—to create optimal incentive structures to support organizations’ overall population health strategies. These methods include proven principles of behavioral economics.
With a firm foundation of appropriately structured physician incentives, organizations will be well-positioned for success in providing high-quality care in an efficient manner and maintaining the health of the populations served.