Aligning Compensation Plans in ACOs

As more hospitals and health systems form accountable care organizations in their communities, executives must align their compensation programs with the goals of the ACO, according to an article from Integrated Healthcare Strategies.

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Regardless of the employment status of physicians and other personnel in an ACO, their compensation plans must factor in performance metrics and value-based goals in order to spur behavior in the ACO’s desired direction.

“The healthcare industry has considerable experience with incentive compensation for executive leaders, but now it must design similar incentive plans for employed physicians, non-employed physicians who participate in the ACO, department heads and others who are critical to the changes in practice patterns that a successful ACO must achieve,” according to the article.

More Articles on Healthcare Compensation:

Renegotiating Relationships: How Hospital Leaders Can Resolve Systemic Conflict
Pay-for-Performance or Pay-for-Manipulation?
5 Compensation Options for ACO Physicians

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