An executive recently contacted me asking how to transition their medical staff to a financial-risk compensation model which included a downside for the clinician.
Here’s what I told her:
- Create a model you are comfortable with and that meets your goals—define the population, the split, the frequency of reconciliation, etc…
- Invest in the infrastructure required for regular financial reporting in an understandable manner as we’ve discussed so frequently in this space.
- Offer it to all your primes—with the caveat that their aggregate and average performance will be made available to those who do not elect to participate.
- Set up a special training for the few that take you up on it.
- Pick a day and start.
- Release the financial performance of the participants (again both in aggregate and averaged with no identifying information) to the non-participants.
When you’re ready to generalize the program, one to three years from now (you’re going to have to do it sooner than you think) you now have a proof of concept and an internal group of experts to collaborate with and mentor the “after comers.”
That’s essentially what we did in our practice when we first started the program.
It worked marvelously for us.
it will work marvelously for you, too.