This is an excerpt from a member-only article. To read the article in its entirety, please login or subscribe.

Expense allocation is one of the trickier aspects of developing a compensation plan. Many groups want to provide incentives for physicians to control costs and work efficiently, particularly given the rising costs of practicing medicine in recent years. But allocating costs to individual physicians, known as cost accounting, can be complex and time-consuming. One option is to simply divide costs equally among all members of the group.