CHAPTER 18
Provider Compensation
John Shufeldt
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MANY FACTORS PLAY A role in the success of your urgent care clinic. Choosing the right location, developing a complementary array of services, and having competent administrative staff help determine the profitability of your facility and your return on investment (ROI). However, a big chunk of the final outcome rests squarely on the professionalism and competence of the providers you hire to take care of your patients. Their daily interactions with patients, their ability to effectively deliver exceptional care, and their willingness to help you build a proactive, compassionate culture among support staff members will all make a big difference in your facility’s reputation, patient volume, and revenue.
Your ability to attract good providers will depend on, among other things, the compensation structure within your facility. If you want top-quality providers, your compensation methodology has to make sense, has to be competitive, and has to encourage the desired behavior. This is why the development of an appropriate pay structure for your clinic is essential for attracting and retaining quality physicians who will help your clinic grow and will cultivate a positive image within the community.
When it comes to designing a pay structure, you have many choices. Clinics can compensate their providers via fixed hourly pay rates or performance structures, can create hybrid models that incorporate various hourly and performance features, and can even add bonus components. As you go through the process of designing the right pay structure for your clinic, or redesigning an existing one, you will need to carefully weigh the pros and cons of the various options available to you because each will have different ramifications. For example, some structures give providers more earning stability but less earning potential, thereby possibly discouraging proactive and efficient behavior. Other structures can create more incentives for providers but at the same time could inadvertently encourage negative behavior that may lower quality of care by promoting a turn and burn mentality.
As you consider the various approaches, keep in mind that the option (or mix of options) you choose will be unique to your specific needs. This is an area of practice-management that you can design to give you more negotiating room when you hire providers. It is an opportunity to build your team in a way that maximizes the long-term potential of your facility and stability of your staff.