Compensation and Productivity Alignment

Is Your Provider Compensation in Alignment?

Provider compensation and benefits can account for 61% of the total operating expense within a physician enterprise, according to the 2020 AMGA Medical Group Operations and Finance Survey.

Having your clinical compensation and productivity in alignment is vital to your medical group’s overall financial wellness. This is why we begin each of our engagements with a multi-point analysis of your provider compensation and productivity. Our team will review your organization’s data and provide three key outputs that can help visualize the overall view of your provider compensation alignment. This exercise can provide an early indication of potential issues that can have a devastating impact on your bottom line.

Multispecialty Scattergram Analysis

We begin by plotting your providers on a scattergram against AMGA Consulting’s nationally renowned benchmarking data. This helps our team isolate potential areas of focus and quickly identify specific providers or specialties in need of realignment. For example, the chart below shows a sample organization with a significant number of providers highlighted in the upper-left triangle. These are providers are misaligned in regards to compensation and productivity.

Physicians who are misaligned with the market will have a costly impact on your operational and financial well-being and can be a significant burden to nearly two-thirds of your clinic’s overall costs. This quick view enables us to effectively dive deeper into different departments and specialties within your organization.

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Productivity Analysis by Specialty

We further analyze your provider compensation and productivity by each specialty department. This secondary analysis provides a more granular view and will identify opportunities that can increase provider productivity or better align compensation.

The example output below sorts out the organization’s Family Medicine physicians, breaking their productivity and compensation into quartiles. Here we see a significant amount of providers (91%) are producing below the median productivity.

Further, we see that nearly 65% of the physicians are being compensated above the median. This presents an opportunity to impact the organizational health on both the revenue and the expense side of the equation. By finding underperforming physicians, our team can identify areas to focus for improvement and work with your team to help identify and remove barriers to increased productivity.

Map Your Providers Against Our Data

APC Productivity Analysis

From 2016 – 2019 the ratio of Advanced Practice Clinicians (APCs) to Physicians in the marketplace continues to grow, according to AMGA’s Medical Group Operations and Finance Survey data. As groups employ lower-cost APCs to augment the care team, they are becoming an increasingly important piece to high-performing organizations on the journey to value. For the third and final portion of the compensation and productivity analysis, our team will review your APC alignment.

The example output above isolates the Family Medicine APCs and breaks their productivity and compensation into the same quartiles. Again, we see a significant amount of providers (63%) who are producing below median productivity.

It is important for organizations focus on both physician and APC compensation and productivity as key aspects of overall medical group financial wellness.

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