In performing comparative analyses for my clients I begin with the “All Participant” survey reports, as these reports will typically have the largest number of participants and a standard deviation closer to the mean survey result. From the “All Participant” data I gather the data from the “All Participants” survey reports for the geographic and demographic classification of the particular area. If there is wide variation in the results of these survey reports I will then look at further cuts of the survey reports such as, weeks worked, hours worked, single versus multispecialty, etc. Finally, adding any available localized data or special circumstances will serve to customize the survey results to the situation being analyzed.

It is very crucial, in appropriately comparing your results to the survey(s), to know how the data in the survey reports was collected, calculated and reported. Additionally, the larger the sample sizes the less likely that the data will be as volatile from year to year. The results for specialties with small sample sizes should be used with extreme caution. The survey results should be used as guideposts and not as a table to determine one’s salary akin to the IRS tax tables.

An organization should revisit their compensation plan/formula at least annually. Additionally, a projection of the impact on the compensation plan/formula should be conducted prior to embarking on any project that significantly impacts the organization financially. Prior to recruiting new physicians to the organization is important to assess the ability of the existing and new recruits to earn market compensation through the compensation plan/formula.

The process begins by collecting the productivity and total earnings of each physician and then comparing your results to that of a market survey that best reflects your organization. Variations from the market results should be reviewed. If the compensation plan/formula varies significantly from market the organization needs to investigate the reasons why this is occurring. If all physicians and specialties are below market, you may have a revenue and/or expense problem. If one or a few specialties are below market, while others are over market, you may have a compensation plan/formula problem.

The review of your compensation plan/formula results to market survey results is a good diagnostic tool to assess the functionality of the plan/formula and the ability of the organization’s physicians to be productive and cost effective.