For years, healthcare organizations have looked to physicians to help manage and reduce costs. One effective means to achieve this is to create an incentive system that rewards physicians for their contributions. To design such a system, organizations should consider the following: Will it be individual-based or team-based? Period of compensation. How much will be compensated? and how to combine financial and non-financial incentives to offer.
Many of physicians’ daily decisions have a significant impact on hospital finances, such as the selection of drugs, equipment, and technology, and the hours of use of resources such as operating rooms and hospital beds. By providing appropriate incentives to physicians, hospitals and health systems can engage them in efforts to maintain or improve patient outcomes while simultaneously controlling costs.
