Many surveys indicate that hospitalists whose compensation is mostly based on productivity have a higher total compensation and, for that matter, higher productivity. Hospitalists, especially those who are employed, are unwilling to accept compensation that is mostly based on productivity, in spite of survey evidence indicating their potential for greater financial rewards.
Try to strike a happy medium that satisfies physicians' need for a base salary while allowing some compensation to remain at risk. That will help to drive desired behaviors, such as increased productivity, increased patient satisfaction survey scores and improved performance on other various hospital initiatives.
One place to start would be setting the base salary between 75% and 80% of the total estimated compensation. The remainder should be based on incentives that are aligned with organizational goals.
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