Increasingly, my health system is looking for ways to incorporate an incentive component into physician compensation models. Scaling a component of physician compensation with productivity may help to align physicians with the financial imperatives of the health system but can carry with it perverse incentives and unintended consequences. Our early experiences with this approach have lead to physicians selecting simpler cases to engage in (when they have the option). It has also caused some divisiveness and seems to be an overall impediment to a healthy team dynamic. On the other hand, it has caused some less productive team members to push themselves and become more active.
Have others had success with a productivity-based compensation model while avoiding the pitfalls?