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Medical Director Compensation Increasingly Tied to Value, Quality

John Commins, for HealthLeaders Media, May 3, 2013

As healthcare delivery moves toward value-based reimbursements, medical directors at physician practices are increasingly shouldering duties tied to monitoring quality metrics such as patient safety and satisfaction, a new survey from the Medical Group Management Association shows.

"As we understand the industry is moving towards a value-based reimbursement model we are seeing that permeate and migrate into compensation methodologies as well, for many good reasons, " says Todd B. Evenson, director of data solutions for Englewood, CO-based MGMA.

The survey found that 40% of medical directors report duties that include monitoring quality metrics.

"It is a strong tactic for many organizations to align compensation methodologies with reimbursement methodologies, " Evenson says. " As we look toward the value-based environment, obviously quality and cost are the two biggest components in that equation. We have a snapshot in time with this survey, and my expectation is that it would continue to evolve as the industry moves closer towards more providers getting paid based on value versus a production level. "

The survey includes responses from 1,422 medical directors in 239 medical organizations, including 142 single-specialty practices and 97 multispecialty groups from all across the nation. Among the respondents,

  • 54% worked in physician-owned practices
  • 27% worked in hospital- or integrated delivery system-owned practices
  • 17% were in some other ownership model
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