In a recent blog post by Foley & Lardner LLP, Principal Angie Caldwell joins Foley Health Care Partner Jana Kolarik to discuss physician compensation. The post, “Physician Compensation Plans and Recent Trends in Physician Compensation 2024,” is part of the Let’s Talk Compliance series, a partnership between the two firms to discuss timely compliance topics.
Caldwell and Kolarik address three currently trending and complex compensation topics:
- “Day One” call coverage compensation for hospital-employed physicians
- The use of proxy work relative value units (wRVUs)
- Applicability of a wRVU productivity-based compensation structure
Read the Let’s Talk Compliance blog post.
“If your organization chooses to pay for call coverage on Day One, an appropriate compensation stacking analysis should occur to ensure [total cash compensation] is not overstated,” write the authors. They provide a sample analysis of a calculation of Day One call coverage to demonstrate the impact of stacking payment types and advise understanding key benchmark survey data before determining fair market value compensation.
The authors also recommend documenting key elements when creating proxy wRVUs, and they provide a helpful list of considerations, such as the nature of the services and level of skill required; the frequency of providing the services; who is providing the services; and many other considerations.
In the post, Caldwell and Kolarik also discuss the popular wRVU productivity-based compensation structure, share disadvantages for certain specialties, and provide details on alternative compensation structures.
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The blog was posted Oct. 22, 2024. It is part of Foley & Lardner’s Health Care Law Today series, which includes a national podcast. Listeners of the podcast can subscribe on Apple Podcasts, Spotify, or their preferred podcast app. All episodes of Let’s Talk Compliance also can be found on the PYA website.
If you would like assistance with determining fair market value for physician compensation, complying with federal regulatory requirements, or any other matter related to compliance or strategy, our executives are happy to help.
