Avoid these three common comp formula mistakes

The top reason physicians leave medical groups is over dissatisfaction with the way they are compensated, Medscape Today reports. Therefore, instead of spending the tremendous time and resources it takes to replace physicians, give your pay formula the careful attention it requires to keep your group intact.

Here are three common compensation mistakes and how you can avoid them:

• You settle for a happy majority. Remember, if one physician leaves a five-doc group, the remaining four will be left to absorb his or her overhead until a replacement is up to full productivity. For this reason, sometimes it's worthwhile to consider a physician's request that may redistribute some compensation away from partners who don't want to give it up.
• You think your formula is settled. Experts recommend groups reevaluate their compensation plans on an annual basis. What's more, leadership (or an impartial third party, such as a consultant or CPA) should sit down one-on-one with each physician to discuss their perception of how the plan is working and whether they're happy with it.
• You try to make "one size fit all". The right formula may differ among specialties and even among satellite offices of the same practice. Through your annual review and discussions with physicians, determine whether your compensation formula reflects the values of the particular office.

To learn more:
- read the article from Medscape Today

To learn more:
Prepare for increased physician turnover in 2011
Four ways to update how you pay physicians
On-call pay continues to rise
Survey reveals major physician pay gaps persist