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Health Law Highlights

Insights into Healthcare Provider Compensation Trends for 2024

From VMG Health, by Ben Minnis, Tyler Navarro, Anthony Domanico:

Innovative Recruitment Strategies: Healthcare organizations are adopting creative methods to attract and retain physicians due to significant changes in the Medicare Physician Fee Schedule and an aging physician population. These methods include enhanced benefits, leadership development programs, broader loan forgiveness, adjustments to hard-to-recruit models, and investment in technology and infrastructure.

Tailored Compensation Models: The one-size-fits-all approach to compensation is becoming obsolete as healthcare delivery settings evolve. Organizations are now tailoring compensation models to suit specific circumstances, with a focus on balancing innovation and standardization.

Emphasis on Work-Life Balance: Physicians are increasingly prioritizing a healthier work-life balance. This is prompting healthcare organizations to adapt their compensation packages to include flexible scheduling options, telemedicine opportunities, and expanded paid time off allowances.

Alignment with At-Risk Incentives and Regulatory Constraints: Modern compensation structures often include a substantial portion of compensation tied to high-quality metrics. However, while innovating compensation models and incentives, it’s essential for organizations to operate within regulatory boundaries to avoid violations of laws governing healthcare practices.

Migration to Advanced Practice Providers (APPs): To address the challenges of physician shortages, health systems are increasingly turning to APPs. The rise of nurse practitioners and physician assistants is seen as a pragmatic response to the growing demand for healthcare services, offering a cost-effective solution and a multifaceted approach to patient care.