A surgical department in a private hospital is going through changes. The department has grown from 5 to 12 and volume has increased accordingly. Along with this, there is a growing need for a department-wide business plan and mission statement to help drive continued quality and growth. At the center of this, physician compensation and departmental incentives have been central to surgeons concerns. The majority of the staff receive the same base salary with a standard percentage return of their surgical and clinical revenue. However, there is a growing interest in changing the compensation structure while sharing the department’s financials as a group to help align departmental goals. This has been met with concern from some surgeons while others have been pushing for it.
- Should the department make this change to transparency? What are the benefits and what are the downsides?
- How transparent should the department be? Should they report only revenue or include how the department spends the revenue? Moreso do they report data as a group or break it down by service or should they break it down by the surgeon?
- Should you be transparent about salary and compensation for each surgeon? A few surgeons have a higher base salary and there may be resentment from this. However, maybe this will be a driving factor for growth.