Compensation Design Strategies for Retaining Primary Care Physicians

This guide presents strategies for hospitals to retain employed primary care physicians through effective compensation design. It outlines three key plays that hospitals can implement. The first play focuses on creating innovative value-based incentives (VBI) that align physician compensation with patient outcomes and hospital goals. The second play emphasizes building a culture to combat physician burnout, which has increased significantly since the COVID-19 pandemic. Strategies include providing leadership opportunities, allowing autonomy in decision-making, and promoting work-life balance. The third play involves presenting a compelling case for employment by transparently communicating the compensation and benefits package to potential hires. This includes detailing both monetary and non-monetary benefits, as well as clarifying the differences between hospital employment and private practice. The guide concludes that hospitals must adapt their compensation strategies to remain competitive in attracting and retaining primary care physicians, who play a crucial role in healthcare delivery.