Creating an Evidence Based Physician Compensation Plan

8 Decision Pathways

MGMA has created a simple, yet effective process for researching, evaluating, and recommending changes in physician compensation. The eight-step decision pathways are summarized below.  

Step 1: Define the problems

  • Create a fair and equitable physician compensation plan that advances the practice’s mission and vision

Step 2: Explore information needs

  • What information is needed to make an evidence based compensation plan?

Step 3: Collect data

  • Extract data from internal systems and collect data from industry resources

Step 4: Interpret data

  • Identify key performance indicators and convert data to useful information

Step 5: Size up alternatives

  • Narrow the options, comparing the projected impact of each

Step 6: Information presentation

  • Present the recommended plan to the physicians along with key data and rationale 

Step 7: Outcome determination

  • Vote among the physician on whether to accept the recommended plan

Step 8: Impact/outcome evaluation

  • After the “go live” date continue to monitor the plan’s impact on physicians pay and behavior


To see details on the 8 steps, visit the MGMA tool by clicking here.