COVID and Compensation

Many compensation topics have surfaced or re-surfaced because of the shut down and large-scale impacts of the outbreak across the health care industry.  Interestingly, the topics are not new. In addition to the analyses that is likely starting around hiring freezes and re-hiring permanent staff versus interim or part time consultants, there are new compensation topics that deserve attention, including:

  • A fair compensation model for telehealth services
  • Executive and staff market adjustments for 2020
  • Executive and physician salary cuts for 2020
  • Productivity bonuses for specialists and surgeons who were impacted by executive orders
  • Gender disparities in compensation
  • Compensation parity or ratios between executive and staff compensation
  • Across the board pay cuts that widen existing pay gaps
  • The impact to future salary survey data based on COVID disruptions
  • The use of quality-based bonuses when the aggregate number of certain electives and surgeries will decrease
  • Compensation plans that calculate bonuses per CY quarter and do not allow for averaging
  • The withholding of administrative, director/chief, or call pay based on COVID

These issues and the nuanced details included in compensation practices and physician compensation plans will require attention and possibly adjustments over the coming months.  The world has changed, and compensation will too.  Please share your thoughts and expertise on these not-so-new issues.

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