A Structured Compensation Plan Results in Equitable Physician Compensation

Does the reform of public hospitals' payment system increase the pay of medical personnel? A nationwide cross-sectional study

“…While most studies examining the impact of pay-for-performance schemes have considered turnover intention [23], patients' health or physicians' satisfaction [24], few have specifically studied the resulting changes in physicians' pay. This finding is in line with the evidence from another study, which considered a structured compensation model that was successfully applied to all physicians at a multisite large academic medical system and may have resulted in pay equity [6]. The findings also align with UK research that found that a proposed new contract payment structure could lead to the pay rise for junior doctors with the most onerous shifts but did not provide much financial compensation for junior doctors who work every other weekend [25].…”

“…At the Mayo Clinic, physicians have been paid under structured pay schemes for more than 40 years, a system which aims to reinforce the fundamental value of the organization by eliminating financial incentives; it has no incentive plans, negotiations or bonuses, and non-wage compensation and benefits are consistent across locations and departments. By adhering to a wage-only model in which clinical and academic productivity are not specifically compensated, medical personnel are allowed to focus their intellectual energies on the benefits of the practice, research, education and management [6]. However, expense accounts and other allowances can serve as important supplements for base salary.…”

Physician Equity II

“…As stated in our article, 3 even when physician compensation is equitable, inequities in access, opportunity, and power often remain. As a result, we read with interest the results of a gender-focused analysis from the Mayo Clinic Department of Emergency Medicine by Raukar et al 4 They explored gender differences in faculty representation, leadership, and academic rank attainment as well as timing and amount of paid ("protected") time away from clinical practice.…”

Ensuring Equity in Compensation and Career Advancement for Female Physicians

“…In this issue of Mayo Clinic Proceedings, Hayes et al, 2 who include the former president/chief executive officer of Mayo Clinic and the current president/chief executive officer, examine their structured compensation model, in existence for 40 years, to understand whether it ensures gender equity in pay. The model examines total compensation for all permanent staff physicians at Mayo Clinic locations in Minnesota, Arizona, and Florida (30% female).…”

“…The model examines total compensation for all permanent staff physicians at Mayo Clinic locations in Minnesota, Arizona, and Florida (30% female). As described by Hayes et al, 2 initial salary for each new hire is a predetermined percent of the target salary within the specialty. Although experience and training before hire can modify initial pay, within 5 years of hire all individuals in the same specialty are expected to reach the target.…”