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 |