Presentation on theme: "Increase Productivity-Increase Satisfaction1 A Dental Incentive System that Works Juris M. Svarcbergs,DMD,MPH Dental Director CAMcare Health Corporation."— Presentation transcript:
Increase Productivity-Increase Satisfaction1 A Dental Incentive System that Works Juris M. Svarcbergs,DMD,MPH Dental Director CAMcare Health Corporation
Increase Productivity-Increase Satisfaction2 Background The early years Do gooders Focus on ideal service Dedication to cause or philosophy
Increase Productivity-Increase Satisfaction3 Background Traditional professional formula Work in itself a reward (a non-monetary incentive) Salary adequate compensation (your paycheck is the reward) Administration outlook (were not the private sector)
Increase Productivity-Increase Satisfaction4 Background The Changing Times Burdened with debt Graduates Business oriented Dentists MBA Administrators The realization:To do Good, we must do Well!
Increase Productivity-Increase Satisfaction5 Driving Forces in todays environment Decreased grant funding opportunities Mainstreamed care delivery Competition for patients Competition for revenue Increased opportunity for Revenue generation
Increase Productivity-Increase Satisfaction6 The New Environment Cost Center Analysis
Increase Productivity-Increase Satisfaction8 Improvements in MIS, CIS Enable accurate dental data collection RVU capabilty for correlation of amount of care with visit info Provider profiles
Increase Productivity-Increase Satisfaction9 Why not become …… competitive in todays environment with MOTIVATED and EFFICIENT PROVIDERS!?!
Increase Productivity-Increase Satisfaction10 Lets Try an Incentive System! Money always works! Should we Increase salary? Should we consider commissions? How do we tie work produced to paycheck?
Increase Productivity-Increase Satisfaction11 The Dilemma(s) Increased Revenue can only be generated with Administrators dont want to lose over expenditures Providers dont administrators to share income or commission's fairly
Increase Productivity-Increase Satisfaction12 Available Incentive Systems % of Provider generated charges % of collections of Providers production x % of Medicaid income y % of Self Pay income $s per R.V.U. generated The mathematician's dream formula
Increase Productivity-Increase Satisfaction13 Satisfaction Can you really be happy if you Cant figure out your take home pay or bonus Cant trust the figures of billing or admin people You have to treat some patients in ways to benefit your income
Increase Productivity-Increase Satisfaction14 Real Life
Increase Productivity-Increase Satisfaction15 How to Build an Effective Incentive Program: The 5 Commandments Simple and easy to understand Allay administration fears Empower providers Make the reward memorable Relate the incentive directly to the organizations income level
Increase Productivity-Increase Satisfaction16 The CAMcare Incentive Plan Guaranteed base salary: Reasonable and contractual Good fringe benefits Health coverage, malpractice,CME time & coverage, pension Security Budgeting Goodwill and competitive edge Only one concern- PRODUCTIVITY
Increase Productivity-Increase Satisfaction17 The CAMcare Incentive Plan Quarterly Goals Quarterly Payout 600 visits/ FTE (not 599!!) (individual provider not group average) 10% of base salary in contract-exactly (prorated for quarter i.e 2.5% of annual base salary)
Increase Productivity-Increase Satisfaction18 Bonus Payout Example Dr. XYZ had 645 patient visits this quarter At $80K contract/yr, Dr.XYZ recd $20,000 in base salary Reaching/Goal gets $2,000 Bonus CHC submitted bill for approx. $64,500 to all payors CHC expects to get min. 2.5 times what pays out docs CHC gets $42,500 (Doc gets $22,000)
Increase Productivity-Increase Satisfaction19 Special Request for Payout! Goal Achievers:
Increase Productivity-Increase Satisfaction20 Bonus is Recognition of Achievement Bonus checks are separate and usually presented by CEO
Increase Productivity-Increase Satisfaction21 And its part of total Package Professional Compensation Package: 1. Base Salary $ 80,000 2. Health Coverage 5,604 3. Soc.Security Taxes 4,142 4. CME Allowance 1,500 5. Vacation,CME,Personal, Holidays,Sick, time 8,941 6. Malpractice Coverage 3,800
Increase Productivity-Increase Satisfaction22 Add up Total Package Total Value………………$ 103,987 If Loan Repayment-add 25,000 TOTAL Package without Bonus: $128,987 !!! Is another $ 8,000 worth the effort???
Increase Productivity-Increase Satisfaction30 S = R/E Choose a goal that directly influences the organizations income level Offer a definite bonus amount that isBIG yet small Support providers in achieving goal at every level
Increase Productivity-Increase Satisfaction31 S = R/E Make the reward memorable (timing, amount, presentation) Report to Board as a Dental Department defining event! (Dental exceeds expectations)
Increase Productivity-Increase Satisfaction32 Who are the Satisfied Customers? Providers (and support staff) CEO CFO Board Patients Community