3 Essentials for Shift to Value-Based Physician Compensation

What’s the organizational 'glide path' to advancing new physician compensation models? One wide enough to build alignment, generate analytics and foster communication, advises Cynthia Kilroy, senior vice president of provider strategy and business development at Optum.

It's also one that brings providers on board early on for crucial tasks like development of performance metrics — particularly physician "evangelists" to lead the transformation, Ms. Kilroy adds.

As healthcare compensation moves from an episodic, volume-based view to a population-focused approach, the engagement and education of participating providers is critical — and also delicate, Ms. Kilroy noted during Accountable Care Reimbursement Models: Moving from Productivity to Population-Based Incentives.

Cynthia Kilroy

"The new financial model moves away from healthcare's preoccupation with gaining market share, she says, to one focused on questions like: How am I coordinating care? How do I measure physician performance related to that? What’s the service and outcome? How can I better manage chronic diseases?

"Organizations are really looking at the panel size and the risk. Now, when we think about population health management, it's not just going to be from a volume perspective, but whether I am really managing that population from a cost and efficiency perspective."

During the webinar, Ms. Kilroy guided organizations toward a successful physician compensation strategy, suggesting 12 questions centered on a company's value-based goals, governance and physician engagement. Of this last, an organization must decide whether its compensation and incentives philosophy leans more toward reward or risk, she suggests, and then identify the physicians who will lead the change.

In case you missed this webinar, you still have a chance to watch this highly-rated program.

Register to view the conference today or order your training DVD or CD:

You can "attend" this program right in your office and learn about: the flow of incentives funds that is dependent on contract type, group maturity and type of group; a structured approach to changing physician compensation required for adoption and ultimately success; financial and clinical information to provide a comprehensive view of physician performance; best practice value-based physician performance metrics that focus on managing care from a population view rather than a volume view; applying analytics to performance metrics; providing physicians insight into the risk profile of their panel to help support them in meeting incentive targets; how physicians can leverage analytics to gain efficiencies and incentives around management of high risk patients; and using risk stratification to lay the foundation to identify patient level actionable clinical interventions.

It’s so convenient! Invite your staff members to watch the conference. We will send you a DVD or CD-ROM of the conference proceedings or a link to our web site with a username and password. You can log in and view the program right from your computer — any time of the day or night, whenever convenient for you and your colleagues — and benefit from the archived recording of the conference, including the Q&A period.

You'll get to listen to the question and answer session to hear more on: metrics for measuring peer satisfaction, a recommended timeline for physicians to view their performance data before making the data publicly available, preferred risk adjustment models for these payment models, using a shadow incentive reimbursement structure before fully implementing an incentive-based system, how to select physician champions, guidelines for specialist compensation and incentives for provider support staff.

To register for the on-demand re-broadcast, download an .MP3 file or order the training DVD or CD-ROM of Accountable Care Reimbursement Models: Moving from Productivity to Population-Based Incentives, please visit:

I hope you find it useful.


Melanie Matthews
Executive Vice President
The Healthcare Intelligence Network

P.S. -- You may also be interested in these resources on value-based reimbursement: