Economics In Practice

The current practice economics are not stable, secure, scalable, or sustainable in institutions or private practice.


Reimbursement has and will continue to erode. Compensation expectations are and will continue to build. The only way out of that scenario is enhanced productivity amongst fewer people.


Innovative compensation strategies and incentives are part of the equation but not all of the equation. Professionals want autonomy of practice, mastery of skills, and purpose in their work.


What is needed is reconceptualization of the challenge and the solutions.


Pay-for-performance has proven challenging in healthcare on multiple levels. That said, professional autonomy demands both clinical and economic accountability.


It's time that the concept of "pay-for-performance" be migrated to "variable compensation" within the framework of autonomy.


Are practices and professionals ready for it? NO, but they need to take it seriously if they intend to remain economically viable. Those that adopt "variable compensation" effectively will enjoy a substancial competitive advantage in the coming months and years. Those who can deliver good service and productivity will have unique opportunities that will pass the rest by.


Bob


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Performance Builders