John Muir Health

Success Stories

Improving the Transparency of Physician Compensation in Value-Based Care

Healthcare reimbursement continues to shift away from fee-for-service reimbursement models to value-based, risk-sharing agreements. This shift has resulted in organizations revising compensation strategies to engage physicians in value-based compensation arrangements. An effective value-based physician compensation plan is critically important, particularly in competitive environments where organizations must optimize the ability to recruit and retain highly skilled providers. One commonly used physician compensation approach includes a base salary and productivity incentives, coupled with additional compensation opportunities for achieving quality and service goals. The physician compensation package at John Muir Health is not only competitive, it is also complex, but the support process was burdensome, inefficient, and lacked transparency.
John Muir Health developed a plan to leverage the Health Catalyst® Analytics Platform, including the Late-Binding™ Data Warehouse and broad suite of analytics applications, to develop an automated process for physician compensation. The plan created efficiencies in time and effort across multiple domains and produced software to automate future work. The benefits included:

Saving 1,560 hours of time required to produce the data necessary to calculate physician compensation.
Successfully integrating more than ten different compensation models and 20 different data elements for more than 300 different providers into the physician compensation analytic application, automating the process.

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