Q&A: How to pay an employed physician

June 19, 2009

Paying based strictly on RVUs often results in a physician who is far more concerned about production than about quality or effectiveness of patient care.

Q: Is it better to pay an employed physician by relative value units or a base salary? I'm concerned that paying based on RVUs would motivate the physician to just be a productivity generator. On the other hand, total expenditures including benefits for the first-year contract could easily exceed $200,000. What do you recommend?