Table 12.

Change in Physician Compensation Under New Model With Bonus Incentive Programs

Payment CategoryWith 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 physician167,500167,500
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 – 12,5000 – 12,500
    Patient education bonus ($5 per patient per year)0 – 2,5000 – 2,500
    With care management bonus ($10 per patient per year)0 – 5,0000 – 5,000
Diabetes care link potential bonus§
    Diabetes care link0 – 11,4000 – 13,000
Cardiac care link potential bonusII
    Cardiac care link0 – 9,7500 – 11,200
    Total change in compensation(20,900) – 20,25042,800 – 87,000
Total compensation under policy
    Total net physician compensation146,600 – 187,750210,300 – 254,500