Compensation and Productivity Alignment

Is Your Provider Compensation in Alignment?

Provider compensation and benefits can account for the majority of the total operating expense within a physician enterprise, according to the 2022 AMGA Medical Group Operations and Finance Survey.

Aligning clinical compensation and productivity is crucial to achieving your medical group’s overall goals. We begin our assessment with a multi-faceted analysis of your provider’s compensation and productivity. Our team will review your organization’s data and provide key analytical outputs which will help to visualize the overall health of your provider compensation program. Our team will use these analytical outputs to form our findings and recommendations. This exercise can provide an early indication of potential issues that can have a detrimental 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 regard to compensation and productivity..

Key Takeaways
  • Misaligned provider compensation and productivity
  • Significant number of providers producing below the 50th percentile
  • Opportunity to redesign compensation model to better align compensation and productivity levels

Providers whose compensation and productivity are misaligned will have a costly impact on your operational and financial well-being and can be a significant burden to the clinic’s overall cost structure. This overall 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 or department. This secondary analysis provides a more granular view and can help identify opportunities that can increase provider productivity or better align compensation.

The example output below sorts out the organization’s Primary Care physicians, breaking their productivity and compensation into quartiles. Here we see a significant amount of physician (66.9%) are producing below the median.

Key Takeaways
  • 66.9% of physicians are producing below the median
  • 73.0% of physicians are being compensated above the median
  • Opportunity to redesign compensation model to better align compensation and productivity levels

Further, we see that 73% 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 in which to focus for improvement and work with your team to help identify and remove barriers to increase productivity.

Map Your Providers Against Our Data

APC Productivity Analysis

From 2017 – 2021 the ratio of Advanced Practice Clinicians (APCs) to Physicians in the marketplace continues to grow, according to AMGA’s 2022 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. For the third portion of the compensation and productivity analysis, our team will review your APC alignment.

Key Takeaways
  • 59.3% of APCs are producing below the median
  • 17.7% of APCs are being compensated above the median
  • Misalignment of compensation and productivity for the APCs producing in the top quartile
  • Opportunity to better align APC compensation model

The example output above isolates the Primary Care APCs and breaks their productivity and compensation into quartiles. Again, we see a significant amount of providers (59.3%) are producing below median productivity, however greater than 82% of APCs are compensated at less than median. An opportunity exists to align compensation and productivity for APCs producing greater than median.

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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