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MD Incentive Compensation. Alexa B. Kimball, MD, MPH Medical Director, Mass General Physicians Organization. Massachusetts General Physicians Organization (MGPO) Organization and History. MGH 1811 Corporation. Formed in 1994 from 3 existing MGH physician groups.
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MD Incentive Compensation Alexa B. Kimball, MD, MPH Medical Director, Mass General Physicians Organization
Massachusetts General Physicians Organization (MGPO)Organization and History MGH 1811 Corporation Formed in 1994 from 3 existing MGH physician groups. Governed by a Board of Trustees, half of whom are lay members. Includes 2,700+ physicians with clinical appointments, almost all of whom are employed by the MGPO. 2
Compensation History • Compensation plans rolled out across departments over past 10 years; most have a productivity component • Quality Incentive Program introduced in 2006 • 2 Terms per year/3 measures per term • Departments also may have some incentive based plans • Internal Performance Framework introduced as we moved increasingly into risk contract
Individual Doctor Hard Unit / Practice Ability to Measure Department Center Easy MGPO High Low Relevance of Incentive to Individual Physician Physician Compensation & IncentivesChallenges • Change • Reducing the relative compensation for clinical productivity to fund other incentives (population management, quality, management of TME, etc.), without reducing professionalism, morale, sense of autonomy/mastery, work ethic. • Danger of “Monetization” • Protecting the commitment to education and academics. • Physician perception • The independent contractor • The cog in the machine (neither is ideal) QI program Department IPF
Overall. 18th program term, 1,940 eligible clinicians Performance by measure. Population health management: 99% met the target Joint Commission training: 98% met the target Department measures: 29 measures, 91% of MDs met their target Communication. Results in a personal email, online, and in the June Fruit Street Physician Payment is in the June paycheck QI HighlightsResults for Term 1, 2015 *This chart may overstate results for small groups. 5
Internal Performance Framework • Forcefield effect • Strategy • Trend • Quality
Not done yet: Taskforce Recommended Principles 2014 • General: • Improve clinical care or contribute to mission • Consistent with an ethical framework of practice for physicians • Compensation • Comp plan structures should be transparent, consistent and fair • Chiefs should have some discretion over comp components • Comp plans should be adjustable over time to market forces and support recruitment and retention • Productivity measures • Productivity incentives should be included in most compensation plans • Non-productivity measures • Measurable • Actionable • Adjustable
Recommended Implementation Principles • Incentives should be integrated in a manner that… • Improve patient care • Minimizes administrative burden • Leverages MGPO QI program admin structure • Recognizes and supports diversity in compensation plans across and within departments • Ideally adds at-risk compensation while preserving current pay • Maintains compensation levels to recruit and retain world-class physicians • Creates opportunity to phase out historical metrics that may be outmoded