ACC CV SUMMIT: New Models of Compensation: Shifting Volumes to Value-Based Purchasing

Friday, January 17, 2014 | MedAxiom

Suzette Jaskie, President & CEO for MedAxiom Consulting, addressed the full open session of nearly 400 attendees at the ACC’s Cardiovascular Summit – Solutions for Thriving in a Time of Change on a topic very dear to all physicians – compensation. Specifically, about the paradigm shift taking place in healthcare where traditional volume compensation models are making way for new models that are based on “value.”

The unique aspect to this trend is how “value” is defined. Ms. Jaskie defined it this way, “A value-based compensation plan is one that compensates physicians differentiated on ALL performance factors including non-productivity achievements.” Another unique aspect is the timing of this shift because many contracts signed during the integration craze are due for renewal – or renegotiation.

As Ms. Jaskie and the team of MedAxiom Consulting work with cardiovascular programs across the country, the compensation conversation has three main themes:

• Less about Fair Market Value (FMV)
• More about sustainability
• Always creating value

Suzette proclaims, “value-based reimbursement is coming, but it’s not here just yet.” Creating value in the CVSL matters regardless of the payment model. The notion that productivity or volume won’t matter is false, the concept of relative volume will prevail. In today’s compensation conundrum, the best plans will include a component where relative volume and value are a strong portion of the model.

Suzette provided five guiding principle for building a compensation model that will work best for your organization including:

1. Relevance in the emerging Value-Based Economy payment model
2. Facilitate goal alignment of the physicians with each other, as well as the physicians with the health system
3. Incentivize physician performance required to execute the cardiovascular service line strategic plan
4. Provide physician’s economic stability and balance stability with risk
5. Align and support current practice culture

Suzette closed the presentation with several sample compensation scenarios or models to provoke thought and discussion among the audience.  She projects that future compensation models will contain a base pay component and a combination of volume and value as well as personal performance incentives