On Call Compensation

Historically, physicians have balanced the burden of “taking call” with the reward of building a larger patient base and receiving adequate compensation for the services rendered during the call period. Increasingly, the willingness of physicians to voluntarily take call is declining, placing the nations hospitals and patients at risk. A solution many hospitals and physicians are debating is establishing a payment mechanism that compensates physicians fairly and appropriately for the unreimbursed burden of “taking call”. Although many hospitals are addressing this debate in reaction to requests from their physicians the better approach is to tackle the challenge proactively.

There are a variety of compensation methods that can be designed to compensate physicians for the time they spend on-call. The type of compensation includes,

  •  Stipends or Per Diem plans, with or without limitations
  • Payment for the amount of time actually called in
  • Deferred payments
  • Productivity plans, based on percent of the Medicare rate
  • Productivity plans, based on a relative value conversion factor
  • Guaranteed levels of reimbursement
  • Offsets to malpractice or other practice costs
  • Hybrid plans and many other methods

When considering how to set compensation you will need to answer the following questions -

  •  Is the amount to be paid within the fair market value for the services rendered?
  • Does the compensation paid create an incentive for the physician to refer patients to the hospital?
  • Could the compensation paid be considered a “double” payment for the physician services?
  • What is the likelihood that the physician will be called in during the on-call period?
  • What is the percentage of uncompensated care that the physician will be servicing during the on-call period?
  • Does the hospital have problems covering the on-call periods with the specialty?

PLS Professional Associates can provide your organization with the expertise to answer these questions, a fair market value opinion to support the level of compensation and assist you with arriving at the solution that is best for your unique situation. Engage us now to facilitate your decision making on this challenging issue.