To comply with federal regulations that govern physician compensation, hospitals, health systems, and other healthcare organizations must ensure that the compensation paid to their employed and non-employed physicians and advanced practice providers (“APPs” and together with physicians, the “providers”) is consistent with fair market value (“FMV”). The best way to ensure compliance is to have a comprehensive approach to reviewing compensation that includes review of compensation from a trusted third-party valuation firm.
Working with hospitals, health systems, and other healthcare organizations of all sizes, VMG Health offers a comprehensive solution that allows organizations to evaluate their provider compensation and productivity levels in a timely and cost-effective manner. VMG Health’s solution is a two-pronged approach that includes an annual physician compensation FMV review of all employed physicians and APPs, as well as ongoing support for any valuation needs an organization has throughout the year.
One important aspect of a comprehensive compliance strategy is an annual review of the actual compensation and work effort generated by an organization’s employed providers.
Every year, VMG Health will work with your organization to compile actual compensation and work effort levels for your employed provider population. Then, VMG Health will compare those levels to market benchmarks for clinical, administrative, and academic compensation and work effort to determine whether the compensation levels provided to these physicians are consistent with standard FMV norms.
VMG Health’s report will make it easy to identify those providers who are at an elevated compliance risk and should have a more detailed review to ensure go-forward compensation is aligned with provider work effort.
In addition to conducting an annual review of employed provider compensation, organizations need ongoing FMV support for new compensation arrangements for both employed and contracted providers. With a streamlined process and automated FMV Tools™, VMG Health can provide clinical, administrative, on-call and other compensation-related valuation exhibits in both a timely and cost-effective manner. Most FMV Tools™ engagements result in a defensible FMV opinion in just a matter of days.