Managed Care
Disease
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Incentives make the difference

MANAGED CARE June 2001. © MediMedia USA
Compensation Monitor

Incentives make the difference

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MANAGED CARE June 2001. ©MediMedia USA

During 2000, favorable incentive policies helped employees of integrated health plans to enjoy larger percentage increases in base pay and total cash compensation than employees of integrated health care providers, such as physician-management companies and fully integrated care-delivery systems. A nationwide survey of 850 health care networks (IHNs) conducted by William M. Mercer Inc. also showed that health plan executives and managers stood to benefit the most, owing to the design of their incentive compensation plans. A Mercer consultant says that to attract and retain employees at all levels, health plans have been quicker than provider organizations to adopt variable pay plans.

Health plans' targets and maximum pay raises have been set higher. During a year when some MCOs exceeded their financial targets, differences in the structure of incentive compensation plans resulted in greater financial opportunities for all levels of employees at most health plans.

SOURCE: 2000 INTEGRATED HEALTH NETWORKS COMPENSATION SURVEY. WILLIAM M. MERCER, INC., NEW YORK. WWW.WMMERCER.COM/USA