Guide to Provider Compensation Function in Healthcare

This guide outlines the provider compensation function within integrated healthcare systems, emphasizing its increasing importance due to various trends such as the shift of physician practices to employed arrangements and the evolution of compensation plans. It details the core tasks associated with this function, which include routine payment administration, performance monitoring, governance support, compliance support, and ad hoc analyses. The guide also discusses the necessary human capital support levels, which are influenced by organizational size and the complexity of compensation arrangements. It provides a conceptual matrix to assist organizations in determining the optimal provider compensation model based on their specific characteristics. Additionally, the guide highlights the critical role of the provider compensation function in aligning provider behavior with organizational goals and ensuring compliance with regulatory standards.