Four Step Compensation Model
Adding providers can be problematic for small I&FM practices. Unless the provider is replacing an already busy provider, the practice has to consider how long it will take the provider to mature, how to structure compensation in a way that is fair to both the provider and the practice and how to address potential issues such as a sudden decline in provider revenue.
e3Business promotes the Four Step Compensation Model for I&FM providers. It provides a basic framework to address an equitable solution to provider compensation. Practices and providers should understand that any approach will require the practice and provider to remain flexible, as no compensation solution can anticipate every revenue scenario. Readers of the Practice Opportunity Outline and Text will recognize the starting base compensation as “the X,” (the minimum a provider needs to receive each month to get by), and the target compensation as “the Y,” (what the provider would be satisfied to make each month in a mature practice). For the Practice Opportunity Outline and Text, CLICK HERE.
Download the Four Step Compensation Model Overview
Download the Four Step Compensation Model Economics
Download the Four Step Compensation Model Spreadsheet (Excel)