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Bonus compensation should be designed to allow the physician to participate in the improved performance of the IDS and the achievement of stated business goals.
A tax-exempt health care IDS excelling in providing the lowest total cost can allow physicians to participate in the system's overall performance as follows:
Revenue Growth: Indexing bonus compensation based on IDS achieving revenue growth projections.
Utilization Control: Indexing bonus compensation based on IDS achieving overall utilization management objectives.
Total Quality Management: Indexing bonus compensation based on IDS achieving of total quality and outcome targets.
These same incentive concepts can apply to physicians who are not employees of the IDS.
For example, one PHO contractual network that is the integrating unit of an IDS is developing such an incentive compensation system.
It is critical that proper incentives be designed and in place prior to the time the IDS is required to perform under a capitation arrangement.
Based on the results of the study, the IDS can implement a compensation system that will enable it to succeed in a managed care environment.
The ARIS Enterprise Architecture Solution from IDS Scheer enables companies to build, maintain and optimize organizational architectures with multiple levels of views of the business.
C) 2006 BMC Software, Inc and IDS Scheer, The BMC Software logos and all other BMC Software product or service names are registered trademarks or trademarks of BMC Software, Inc.