How’s the Volume-to-Value Transition Working for YOU?

After our second day at the AHLA Physicians and Hospitals Law Institute, some clear themes are beginning to come into focus around the volume-to-value transformation in physician compensation. Quality-based compensation is fraught with challenges—quantifying value as compared to physician productivity is foreign to many. Also, missteps in the implementation can wreck the entire process.

First, recognize that pay-for-value isn’t just another compensation increase. Simply adding quality measures to yesterday’s employment arrangement doesn’t mean a physician’s value is incrementally higher than yesterday. Are new dollars coming in the door from payers? Is the physician at risk for achieving quality, satisfaction, and cost-effective care metrics? Sometimes, the most effective transformations involve carrot-and-stick approaches that marry risk and reward. This requires trustworthy data, engaged physician leadership, and creative thinking.

Second, be intentional with the pace of change. Remember that change is difficult for most people, including physicians. Move too fast or without proper communication and you can quickly create dissatisfaction. Move too slowly and you may lose market position as competitors attract payers and top talent. You can manage pace of change by staging your implementation by specialty, new acquired practices, or newly employed physicians.

There is no one-size-fits-all solution. You can’t expect every physician compensation plan to have the same mix of product and quality metrics. Many plans will vary.

Click the image to read the full infographic

 One of the best ways to ensure a fair and equitable plan is to seek input from both primary care physicians and specialists. If your plan doesn’t account for practice and patient differences, you can expect unhappy participants, and that’s not the transformation you’re looking for.

For weekly insights into healthcare, please sign up here: