A large, national, for-profit health system (Health System) desired to strategically position itself to offer a new transplant surgery program within a target market, but encountered challenges providing a competitive and compliant offer to recruit an accomplished physician capable of developing and growing the de novo program.
Situation
Determining compensation for clinical and administrative leadership of a de novo program is challenging due to limited productivity data, scarce market benchmarks, high role complexity, and elevated compensation expectations tied to program development demands. Because of these difficulties, the Health System engaged VMG Health to assist in establishing fair market value (FMV) compensation package for a highly qualified physician recruit to develop and lead the transplant surgery program throughout one of their affiliated regional divisions. The Health System requested VMG Health’s services because of VMG Health’s extensive experience surrounding de novo transplant programs and deep understanding of the intricacies surrounding physician compensation under these arrangements. VMG Health was tasked to determine the FMV compensation range for the physician’s proposed clinical and administrative director services and evaluate the recruit’s provision of call coverage and graduate medical education services.
Solution
VMG Health conducted an in-depth analysis of the services to be provided by the subject physician. This analysis first consisted of interviews with Health System leadership regarding requirements of the role, future expectations for the transplant surgery program, and the specific qualifications and experience of the subject physician. Additionally, VMG Health researched various niche market surveys that publish transplant surgery specific market data, analyzed VMG Health’s proprietary internal database, and blended clinical and administrative program development market data. Lastly, VMG Health provided separate FMV opinions for division-wide transplant surgery call coverage services and general surgery graduate medical education services, and confirmed that the total proposed compensation package was consistent with FMV.
Success
VMG Health completed several independent valuations and provided the Health System with appropriate FMV ranges for each service to be provided by the recruited physician in developing the new transplant surgery program. The Health System then used these valuations to successfully recruit the subject physician while remaining compliant with regulatory laws and regulations. Because of this recruitment, the Health System was able to provide much–needed specialty care to patients and has since developed a robust transplant surgery program across the division.
