Healthcare News & Insights

Hospitals using patient satisfaction for physician incentives

As healthcare facilities struggle with budget challenges and new regulatory changes, many hospitals are rethinking the compensation models they use to set doctors’ pay. 

Economic challenges and the big federal push for healthcare reform are changing the way physicians are compensated, according to the recently published HealthLeaders Media Intelligence Report, Physician Compensation: Shifting Incentives.

As providers are forced to do more on tighter budgets, healthcare execs are increasingly focusing on using patient satisfaction measurements to drive financial incentives for their medical personnel.

While productivity is still the most commonly used factor in their physician incentive plans, cited by 75% of the health execs surveyed, the study also notes an increased emphasis on quality of care and patient experience. Half the organizations studied use patient satisfaction surveys in their incentive programs, and 57% use various quality metrics.

Patient satisfaction and quality of care have direct ties to hospital revenue as well as reimbursements, so it makes sense those factors would affect how much doctors are paid.

And to help with budget and staffing issues, 47% offer incentives to doctors for participating in administrative duties, and 23% do so for chart completion.

Due to shifting regulations and market challenges, organizations are also reviewing their compensation strategies more frequently, with 41% changing their models every year or two, and just 21% using the same model for more than five years.

To read more, download the full report here.

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  1. […] average overall satisfaction rating was an excellent 9.28. Overall, about 85% of ratings were a 9 or higher. Less than 2% of ratings were below a […]