Recruiting and Retaining Providers Part Two – How to Incentivize and Compensate Appropriately
WRITTEN BY JUSTIN OUTSLAY
8 MINUTE READHello, valued readers!
This is the second part of a multi-part blog post on the topic of recruiting and retaining providers. Part One was about maximizing the benefits for doctors who choose employment in your healthcare organization rather than opening their own clinic. Part Two, which you're about to read, offers practical and actionable advice on how to structure employment agreements to incentivize and compensate your medical providers appropriately.
The topic of incentives can consume an entire business school class. Indeed, I took a class in business school called "Managing the Workplace," which is all about designing effective compensation and incentive structures for your workers. One of the great business leaders of the 20th century, Charlie Munger, said, "Never, ever, think about something else when you should be thinking about the power of incentives," and "Show me the incentives, and I'll show you the outcome." Given the paramount importance of incentives, how can we, healthcare organization owners and operators, ensure that our most valuable assets, our providers, are incentivized appropriately? This is a complex topic, but I attempt to provide helpful knowledge and insight in this blog post.
Introduction
In the competitive healthcare landscape, attracting and retaining top talent is crucial for the success of any medical organization. As an entrepreneur with a keen interest in healthcare management practices, I have observed that while recruiting skilled providers is challenging, keeping them satisfied and engaged requires a strategic and informed approach. The cornerstone of this approach lies in how organizations incentivize and compensate their physicians. In this blog, we will explore how to design effective compensation packages that not only attract but also retain top-tier providers, ensuring they feel valued and committed to your organization's long-term goals.