Pa. As a result, practices that have historically paid pure salaries or split revenue equally are beginning to add measures of productivity into their salary plans. Physicians may not always eat what they kill, but their salaries are increasingly being affected by what they bring to the table in terms of charges or collections, or by how much work they do based on such measures as patient visits or RVUs. Penrose St. Francis Medical Group in Colorado Springs, Colo., for example, is developing a system in which physicians may have to work a certain number of hours and meet monthly billing targets to qualify for their base pay. The 60-provider primary care group might also require physicians to participate on committees in the group and stick to their budgets, explained Kenneth M. Rafal, MD, president of the group. Penrose will pay a bonus to physicians who meet those targets and also exceed a certain level of RVUs.
Experts warn, however, that productivity incentives can backfire.
But practice administrators realized they are rewarding the wrong behavior. Today, the practice is developing a new system that will base physician salaries in part on meeting target RVUs. If your group is considering productivity incentives, keep a close eye on the Stark II regulations. They also regulate how profits from those services may be distributed. Other incentives Even as practices move to productivity-based systems, some are discovering that paying for effort may not be enough.