Physician Compensation and Revenue Distribution Models

We guide clients in establishing the most effective contracting and compensation structure for their organizations based on productivity and behavioral measures, budgets and reimbursement methodologies.

Working with a client, pmpm® develops specialty and sub-specialty scopes of service, validates and reallocates procedural cost and utilization data, benchmarks client data against industry standards, selects reimbursement methodologies, and sets specialty budgets to ensure uniform compensation.

We assist clients in defining roles and responsibilities, and in developing physician educational programs to provide an understanding of business performance with data overviews and reports. We model the impact of alternative compensation formulas based on historic performance to aid in decision making. Physicians understand how we derive compensation rates, utilization and cost factors for the group and within and between physician specialties. We design a revenue distribution system within a medical group that differentiates behavior, quality and satisfaction measures.