Learn how Withum conducted a fair market value compensation review to improve retention and recruitment for health system’s gastroenterology providers.
Executive Summary
Withum was engaged by the CFO of an approximately 1,000-bed regional hospital to provide insight and assistance with its gastroenterology physicians. Withum’s work efforts focused on determining the fair market value compensation and developing a compensation plan that could retain and recruit new physicians.
The Client
A large, approximately 1,000-bed, regional hospital in the Midwest with $5-8 billion in annual revenue.
The Challenge
The hospital employed eight gastroenterologists (the “physicians”) but needed to recruit four more. However, the hospital had struggled with general provider recruitment for two years. While the physicians were highly productive, their compensation levels were well below market averages. The physicians eventually realized this and threatened to leave and join other competing systems. Thus, the hospital needed to develop a compensation plan to retain as many physicians as possible and recruit four additional physicians.
Lessons Learned
If the hospital had addressed the low compensation earlier, the cost increase would have been approximately halved, as compensation could have been set to the market average on a per wRVU basis. This approach would have gotten ahead of the recruitment issues, leading to increased physician satisfaction and no disruption to the gastroenterology service line. It would also have been more successful in recruiting the twelve needed physicians. Thus, it is crucial for health systems to analyze multiple provider benchmarks regularly to detect potential problems and intervene early. Through a combination of internal processes and expert assistance, an effective, cost- and time-efficient provider compensation and performance analysis can be regularly conducted.
Contact Us
For more information, please contact a member of our team.
