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Salary and Quality Compensation for Physician Practices Participating in Accountable Care Organizations.
Ann Fam Med. 2015 Jul-Aug; 13(4):321-4.AF

Abstract

BACKGROUND

The accountable care organization (ACO) is a new organizational form to manage patients across the continuum of care. There are numerous questions about how ACOs should be optimally structured, including compensation arrangements with primary care physicians.

METHODS

Using data from a national survey of physician practices, we compared primary care physicians' compensation between practices in ACOs and practices that varied in their financial risk for primary care costs using 3 groups: practices not participating in a Medicare ACO and with no substantial risk for primary care costs; practices not participating in an ACO but with substantial risk for primary care costs; and practices participating in an ACO regardless of their risk for primary care costs. We measured physicians' compensation as the percentage of compensation based on salary, productivity, clinical quality or patient experience, and other factors. Regression models estimated physician compensation as a function of ACO participation and risk for primary care costs while controlling for other practice characteristics.

RESULTS

Physicians in ACO and non-ACO practices with no substantial risk for costs on average received nearly one-half of their compensation from salary, slightly less from productivity, and about 5% from quality and other factors. Physicians not in ACOs but with substantial risk for primary care costs received two-thirds of their compensation from salary, nearly one-third from productivity, and slightly more than 1% from quality and other factors. Participation in ACOs was associated with significantly higher physician compensation for quality; however, participation was not significantly associated with compensation from salary, whereas financial risk was associated with much greater compensation from salary.

CONCLUSION

Although practices in ACOs provide higher compensation for quality, compared with practices at large, they provide a similar mix of compensation based on productivity and salary. Incentives for ACOs may not be sufficiently strong to encourage practices to change physician compensation policies for better patient experience, improved population health, and lower per capita costs.

Authors+Show Affiliations

Department of Health Management and Policy, School of Public Health, University of Michigan, Ann Arbor, Michigan amryan@umich.edu.Division of Health Policy and Management, School of Public Health, University of California Berkeley, Berkeley, California.Division of Health Policy and Management, School of Public Health, University of California Berkeley, Berkeley, California.Division of Healthcare Policy and Economics, Department of Health Policy and Economics, Weill Cornell Medical College, New York, New York.

Pub Type(s)

Journal Article
Research Support, Non-U.S. Gov't

Language

eng

PubMed ID

26195675

Citation

Ryan, Andrew M., et al. "Salary and Quality Compensation for Physician Practices Participating in Accountable Care Organizations." Annals of Family Medicine, vol. 13, no. 4, 2015, pp. 321-4.
Ryan AM, Shortell SM, Ramsay PP, et al. Salary and Quality Compensation for Physician Practices Participating in Accountable Care Organizations. Ann Fam Med. 2015;13(4):321-4.
Ryan, A. M., Shortell, S. M., Ramsay, P. P., & Casalino, L. P. (2015). Salary and Quality Compensation for Physician Practices Participating in Accountable Care Organizations. Annals of Family Medicine, 13(4), 321-4. https://doi.org/10.1370/afm.1805
Ryan AM, et al. Salary and Quality Compensation for Physician Practices Participating in Accountable Care Organizations. Ann Fam Med. 2015 Jul-Aug;13(4):321-4. PubMed PMID: 26195675.
* Article titles in AMA citation format should be in sentence-case
TY - JOUR T1 - Salary and Quality Compensation for Physician Practices Participating in Accountable Care Organizations. AU - Ryan,Andrew M, AU - Shortell,Stephen M, AU - Ramsay,Patricia P, AU - Casalino,Lawrence P, PY - 2015/7/22/entrez PY - 2015/7/22/pubmed PY - 2016/4/22/medline KW - accountable care organizations KW - health KW - insurance KW - physicians KW - reimbursement KW - value-based purchasing SP - 321 EP - 4 JF - Annals of family medicine JO - Ann Fam Med VL - 13 IS - 4 N2 - BACKGROUND: The accountable care organization (ACO) is a new organizational form to manage patients across the continuum of care. There are numerous questions about how ACOs should be optimally structured, including compensation arrangements with primary care physicians. METHODS: Using data from a national survey of physician practices, we compared primary care physicians' compensation between practices in ACOs and practices that varied in their financial risk for primary care costs using 3 groups: practices not participating in a Medicare ACO and with no substantial risk for primary care costs; practices not participating in an ACO but with substantial risk for primary care costs; and practices participating in an ACO regardless of their risk for primary care costs. We measured physicians' compensation as the percentage of compensation based on salary, productivity, clinical quality or patient experience, and other factors. Regression models estimated physician compensation as a function of ACO participation and risk for primary care costs while controlling for other practice characteristics. RESULTS: Physicians in ACO and non-ACO practices with no substantial risk for costs on average received nearly one-half of their compensation from salary, slightly less from productivity, and about 5% from quality and other factors. Physicians not in ACOs but with substantial risk for primary care costs received two-thirds of their compensation from salary, nearly one-third from productivity, and slightly more than 1% from quality and other factors. Participation in ACOs was associated with significantly higher physician compensation for quality; however, participation was not significantly associated with compensation from salary, whereas financial risk was associated with much greater compensation from salary. CONCLUSION: Although practices in ACOs provide higher compensation for quality, compared with practices at large, they provide a similar mix of compensation based on productivity and salary. Incentives for ACOs may not be sufficiently strong to encourage practices to change physician compensation policies for better patient experience, improved population health, and lower per capita costs. SN - 1544-1717 UR - https://www.unboundmedicine.com/medline/citation/26195675/Salary_and_Quality_Compensation_for_Physician_Practices_Participating_in_Accountable_Care_Organizations_ DB - PRIME DP - Unbound Medicine ER -