Originally published by the American Association of Provider Compensation Professionals
Managing and administering physician compensation is a complex undertaking that involves the reconciliation of several moving parts.
Plan variability remains common – which can make the process difficult to standardize and streamline. Although there is no ‘one-size-fits-all’ approach, one critical aspect that all organizations must master is effectively integrating compensation earned from all sources.
This includes the proper allocation of physician full-time equivalents (FTEs) for each contracted component of work. Complications may arise, however, when adjusting compensation due to planned or impromptu changes in FTE allocation, leaves of absence, and other related modifications.
These changes not only add to the complexity for compensation administrators, but they also invite greater uncertainty from physicians who may question the accuracy of their individual pay and performance results.
This is where automation can help.
Utilizing physician compensation software – one that can integrate data from multiple sources and automate FTE allocations and compensation calculations to account for these adjustments – can help to address both of these issues by easing administrative burden and instilling physicians with greater confidence in their reported results.
To help facilitate this process, organizations must identify all physician work hour allocation and FTE types.
These may include:
- Multiple clinical types for physicians in dual roles (eg: Pulmonologist and Intensivist)
- Administrative or Medical Director
- Research or Teaching
- Other
It is important to have a clear process for integrating required data and communicating changes to each FTE. For example, using HR and/or payroll hours by pay code to provide information on a physician’s leave of absence may help to determine the appropriate FTE and, in turn, can be used to adjust incentive compensation appropriately.
Additionally, providing physicians with a timely, transparent, and accurate view into how the FTE adjustments impact their pay is critical for building trust. It will also help to paint a more complete and holistic picture of compensation earned from all sources.
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