Change in Physician Compensation Under New Model With Bonus Incentive Programs
Payment Category | With 18% Reduction in Hours Worked, $ | With Current Work Hours,* $ |
---|---|---|
Source: Lewin Group estimates using illustrated assumptions.13 | ||
FTE = full-time-equivalent; FFS = fee-for-service; EHR = electronic health record. | ||
Note: numbers in parentheses indicate loss. | ||
* Assumes physicians use savings in time worked to increase the number of patients served. | ||
† Assumes all patients are enrolled in participating health plans. Assumes average panel of about 2,030 patients per FTE physician. | ||
‡ Bonus amounts capped at $20,000 per physician. | ||
§ Bonus of up to $80 per diabetes patient for high scores on diabetes care. Assumes 7% of patients have diabetes. | ||
II Bonus of up to $160 per cardiac patient for high scores in providing cardiac care. Assumes 3% of patients have cardiac conditions. | ||
Current average compensation | ||
Mean compensation per FTE physician† | 167,500 | 167,500 |
Changes in physician compensation per physician | ||
New model under current FFS system (taken from previous microanalysis) | (20,900) | 42,800 |
Physician office link potential bonus‡ | ||
With EHR bonus ($25 per patient per year) | 0 – 12,500 | 0 – 12,500 |
Patient education bonus ($5 per patient per year) | 0 – 2,500 | 0 – 2,500 |
With care management bonus ($10 per patient per year) | 0 – 5,000 | 0 – 5,000 |
Diabetes care link potential bonus§ | ||
Diabetes care link | 0 – 11,400 | 0 – 13,000 |
Cardiac care link potential bonusII | ||
Cardiac care link | 0 – 9,750 | 0 – 11,200 |
Total change in compensation | (20,900) – 20,250 | 42,800 – 87,000 |
Total compensation under policy | ||
Total net physician compensation | 146,600 – 187,750 | 210,300 – 254,500 |