Ask An Advisor: Insight to Navigating On-Call Compensation

Welcome to the MGMA Ask An Advisor Podcast, hosted by Daniel Williams, Senior Editor at MGMA, and joined by Cristy Good, Senior Advisor at MGMA. In this episode, we address one of the pressing challenges for medical practices: structuring on-call compensation effectively. This conversation dives into common models, compliance considerations, balancing workloads, and managing provider burnout. Medical practice leaders will find practical solutions and strategies to ensure fair, transparent, and market-aligned on-call practices, helping mitigate potential issues within their teams.

Key Takeaways:

• On-Call Compensation Models:
  • Daily Stipend: A common approach offering a fixed daily rate, typically ranging from $1,000 to $1,500.
  • Hourly Compensation: Payment based on active hours, providing flexibility but requiring close time tracking.
  • Productivity-Based Pay: Aligns compensation with volume or service type but can lead to variable income.
  • Minimum Guarantee: Ensures a base pay with a potential bonus for exceeding on-call demands.
  • Tiered Compensation: Adjusted rates for specific times or services, ideal for practices with diverse on-call needs.
• Ensuring Compliance and Fair Market Value:
  • Leverage MGMA DataDive for benchmarking compensation within specialties and regions.
  • Avoid arrangements that could imply incentivizing referrals, adhering to Stark Law and Anti-Kickback Statutes.
  • Keep thorough documentation on call frequency, provider burden, and response requirements to support defensible compensation structures.
• Balancing On-Call Responsibilities:
  • Implement shared call models and clearly define call duties within provider agreements.
  • Encourage open communication among providers to discuss and address workload concerns.
  • Include flexibility by allowing providers to trade shifts, ensuring fair distribution across the team.
• Mitigating Provider Burnout:
  • Practices can bring in nocturnists or hospitalists for night and weekend shifts, reducing the strain on regular staff.
  • Openly address provider workload concerns, fostering a supportive environment for well-being.
• Resources and Links:
  • MGMA DataDive
  • Ask MGMA
  • Email Advisor@mgma.com for direct assistance and resources.

For more resources and direct assistance with your practice needs, check the episode show notes or visit MGMA’s website for insights on on-call compensation and other key topics.