A compensation incentive plan for hospital-based physicians.

Abstract

The medical environment in which we currently practice is, at once, both frightening and exciting, full of opportunity for those who can best adapt. The number of practicing physicians is increasing at a rate greater than that of the population, while physicians' incomes are stabilizing, with actual buying power reduced. With more medical groups forming (more HMOs, IPAs, and PPOs), physicians are increasingly accepting salaried positions. Physician productivity will be one of the key factors in professional and economic survival. Increasingly, physicians, especially those who are hospital-based, have both revenue- and nonrevenue-generating responsibilities, including clinical, educational, research, and administrative activities. This article proposes a compensation incentive plan for hospital-based physicians that addresses these varied responsibilities.