Medical director compensation can be a sticky subject for surgery centers, as physician responsibilities in a medical directorship role can vary tremendously between centers and compensation should only be tied to the duties of the role. Ben Ulrich, manager with VMG Health, answers a few questions on how ASCs should set compensation for their medical directors.
Q: How do the responsibilities of an ASC medical director vary? Can you nail down a "standard" set of responsibilities you see in surgery centers?
Ben Ulrich: Responsibilities of an ASC medical director can vary based on a variety of factors, such as the size, market and specialty mix of the ASC. Typical ASC medical director responsibilities we've observed include:
• Implementing policies related to administrative efficiencies and medical care
• Strengthening community relations
• Physician and staff education
• Developing and tracking physician and patient satisfaction metrics
• Monitoring and providing input regarding capital equipment utilization, maintenance and purchases
Q: What kind of range have you seen in regards to medical director compensation?
BU: Based on the type of responsibilities the medical director assumes, we typically see compensation ranging from $10,000-$50,000. Generally, these payments are in the form of a monthly or annual stipend. From a valuation perspective, the fee should be largely dependent upon the actual time spent providing medical director services.
Q: How should compensation for ASC medical directors be determined?
BU: ASC medical director compensation can vary by the degree of administrative experience, amount of medical director hours provided per month and the tangible improvement/results produced by serving in this role. For example, a physician who has increased patient satisfaction while providing 20 identifiable medical director hours per month would justify earning higher administrative compensation than a physician who estimated working 10 medical director hours per month with no measureable quality improvements.
For references on the range of medical director compensation, there are multiple national medical director compensation surveys available. It is important to note that the vast majority of the respondents in these surveys reflect a hospital-to-physician arrangement. However, the hourly rates included in these surveys can provide a reasonable proxy for ASC medical director compensation.
Q: How do you determine "fair market value" for services from a physician medical director?
BU: We would want to understand the services being provided, whether actual hours worked as a medical director have been or can be tracked, and some qualitative information on the physician's experience. Typical questions we'd ask include:
• How many years of medical director or other administrative experience does the physician have?
• Does the medical director provide typical services as seen in other agreements such as implementing, monitoring and amending policies to achieve greater levels of medical care and operational efficiency?
• Has the medical director produced any noted improvement in operational efficiency or quality of care at the ASC?
Based on the response to questions like these, we'd analyze the spectrum of ASC medical director compensation from the national surveys and benchmark the physician accordingly.
Q: What mistakes do you see surgery centers making in regards to medical director pay?
BU: I would suggest confirming that the services being provided are separate and identifiable from any clinical services he or she bills for associated with patient care. Ideally, payments to physicians serving in any administrative capacity should to be documented and traced to the individual services being provided.
Read more about VMG Health.
Related Articles on ASC Operations:
ASC Specialty to Watch: Gynecology in 2012
10 ASC Best Practices From the Most Read November 2011 Articles
ASC Specialty to Watch: Ophthalmology in 2012
Q: How do the responsibilities of an ASC medical director vary? Can you nail down a "standard" set of responsibilities you see in surgery centers?
Ben Ulrich: Responsibilities of an ASC medical director can vary based on a variety of factors, such as the size, market and specialty mix of the ASC. Typical ASC medical director responsibilities we've observed include:
• Implementing policies related to administrative efficiencies and medical care
• Strengthening community relations
• Physician and staff education
• Developing and tracking physician and patient satisfaction metrics
• Monitoring and providing input regarding capital equipment utilization, maintenance and purchases
Q: What kind of range have you seen in regards to medical director compensation?
BU: Based on the type of responsibilities the medical director assumes, we typically see compensation ranging from $10,000-$50,000. Generally, these payments are in the form of a monthly or annual stipend. From a valuation perspective, the fee should be largely dependent upon the actual time spent providing medical director services.
Q: How should compensation for ASC medical directors be determined?
BU: ASC medical director compensation can vary by the degree of administrative experience, amount of medical director hours provided per month and the tangible improvement/results produced by serving in this role. For example, a physician who has increased patient satisfaction while providing 20 identifiable medical director hours per month would justify earning higher administrative compensation than a physician who estimated working 10 medical director hours per month with no measureable quality improvements.
For references on the range of medical director compensation, there are multiple national medical director compensation surveys available. It is important to note that the vast majority of the respondents in these surveys reflect a hospital-to-physician arrangement. However, the hourly rates included in these surveys can provide a reasonable proxy for ASC medical director compensation.
Q: How do you determine "fair market value" for services from a physician medical director?
BU: We would want to understand the services being provided, whether actual hours worked as a medical director have been or can be tracked, and some qualitative information on the physician's experience. Typical questions we'd ask include:
• How many years of medical director or other administrative experience does the physician have?
• Does the medical director provide typical services as seen in other agreements such as implementing, monitoring and amending policies to achieve greater levels of medical care and operational efficiency?
• Has the medical director produced any noted improvement in operational efficiency or quality of care at the ASC?
Based on the response to questions like these, we'd analyze the spectrum of ASC medical director compensation from the national surveys and benchmark the physician accordingly.
Q: What mistakes do you see surgery centers making in regards to medical director pay?
BU: I would suggest confirming that the services being provided are separate and identifiable from any clinical services he or she bills for associated with patient care. Ideally, payments to physicians serving in any administrative capacity should to be documented and traced to the individual services being provided.
Read more about VMG Health.
Related Articles on ASC Operations:
ASC Specialty to Watch: Gynecology in 2012
10 ASC Best Practices From the Most Read November 2011 Articles
ASC Specialty to Watch: Ophthalmology in 2012