Harlan Schmitt, principal in Schmitt, Griffiths, Smith & Co., an accounting and business consulting firm of in Ogden, Utah, makes five points about compensation of ASC administrators.
1. Emphasize the positive. Focus on positive behavior as opposed to correcting problems. People respond better to praise than punishment. This means relying on bonuses, even if they are comparatively low. "Bonuses are as much psychological as they are monetary," Mr. Schmitt observes. He recommends setting the bonus at 6-15 percent of salary.
2. Cover what administrator has control over. "Hold the administrator responsible for things they can control," Mr. Schmitt says. For example, the administrator can have an impact on staffing, expenses, surgeon satisfaction, and prompt and attentive care.
3. Don't include uncontrollable factors. For example, it would be hard to increase volume at a time when surgery volume is falling and hospitals are hiring many of the unaligned physicians. "Try to be attentive to things where it is possible to make a difference," Mr. Schmitt says.
4. Create a system to judge all factors. Mr. Schmitt works with six different surgery centers and each one has a different way to judge all the factors in an administrator's performance. Some give different weights to each factor; others simply use checklists. Whatever method is used, it should be clear and comprehensible.
5. Focus on areas needing improvement. Determine the ASC's strategic objectives of for the next year and customize expectations accordingly. If the ASC's top priority is improving its collection rate, make that the chief factor for the review.
Learn more about Schmitt, Griffiths, Smith & Co.
Read more about ASC compensation:
- 3 Key Factors Affecting ASC Administrator Compensation With Greg Zoch of Kaye/Bassman
- Call Coverage Payments: Trends, Regulations, Statistics and Valuation Considerations
- 10 Statistics on How Physicians are Paid, Who They Are, What They Do