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 Today in Health it, we are discussing physician compensation reform gains, steam.

My name is Sarah Richardson. I'm president of community development at this week Health where we host a set of channels and events dedicated to transforming healthcare, one connection at a time. And I am joined by Kate Gamble, managing editor here at this week. Health. Kate, welcome to the show. Hey Sarah, I'm excited about today's discussion 'cause we're diving into a topic that's getting a lot of attention, physician compensation reform as it should, although there's major push to rethink how physicians are paid. Which is about moving away from the traditional fee for service model, a more towards value-based compensation.

It's a shift that's not just about money, it's also about how healthcare is delivered, measured, and supported by technology. And for our listeners, this is something that's gonna impact everything from EHRs to AI to cybersecurity. So if compensation is tied to outcomes and efficiency, then health IT teams need to ensure the right data, tools, and infrastructure are in place.

Which is true of most of the conversations you and I have, and I love that contextually we're placing into the lens of the physician comp model. So we're gonna break down five key takeaways from the latest conversations around physician compensation reform and what that actually means for healthcare IT leaders.

So first, and this is probably the biggest change we're seeing, is the shift from volume-based to value-based compensation. Because historically physicians were reimbursed based on the number of procedures, visits, or tests they ordered. But now the focus is on patient outcomes and quality of care rather than just volume.

And you can see why obviously that's so important, and we've been hearing about this for years. But this means that data tracking is more important than ever. So if you're a health IT executive, your team is now responsible for ensuring that clinicians have access to real time, accurate and easy to use data to measure performance.

We don't want this to be more clicks in the EHR if we don't make this seamless. We're just gonna add to physician frustration and burnout, so we're solving one problem and creating another, but also think about where these models are working really effectively.

I live in California and we've done value-based care, essentially through the managed care environment for decades, and it works really well here even though it's a model that takes time to build It can be complicated to replicate based on the local laws and ordinances where you are yet also very possible when you have the right partnerships with your payers.

So for those who are listening, we're gonna pose this question to you. Do your systems actually support measuring physician performance in a way that makes sense and doesn't add administrative burden for something to think about? For sure. It's also now where AI can come into play because it's gonna have a huge role in the compensation shift.

There's a reason that AI is something we talk about a lot, but in this case, it's being used to analyze patient data, predict health outcomes, and even automate administrative tasks. But that raises a question. If AI is doing more, how does that impact physician pay? I. Which is a point I love because if AI's gonna reduce workload, say by automating, charting, identifying a diagnosis faster, then are we adjusting compensation models accordingly?

'cause we're now going away from those volume-based payments into the outcomes of what's occurring with your patient populations. You're getting, in many cases, a single fee from the payer to take care of that patient regardless of what is happening in their care plan. Yeah, it's gonna get complex for sure.

And of course, cyber always comes into play. More AI means more data sharing, more access points and higher risks. So CISOs need to be involved early to make sure AI driven tools meet security and compliance standards. So here's the takeaway for us in the AI part of the conversation, it is reshaping how physicians work, but it also means that.

IT teams need to rethink workflow, data governance and security protocols to support the changes that are occurring within their organizations. So next up, and this is gonna make some ears perk up EHRs, this is gonna hit home for a lot of people. I. Because physician comp reform means that EHR systems also need to evolve.

If we're measuring physician performance based on patient outcomes, then the EHR needs to track, integrate and report that data as efficiently as possible. And let's be honest, EHR usability is already a major pain point. This is something we hear in many of the interviews we do. So if we're adding more tracking requirements, Health IT teams need to work closely with clinicians to ensure these changes. Don't just create more frustration, which also goes back to what we talk about often is interoperability. Because if your system can't pull the data from different platforms to create a full picture of physician performance, you're already behind and you're gonna add extra layers of complexity to your data teams in terms of where you're sourcing the information and how that is.

Presenting itself within the context of that patient visit for the physician, even insofar as chart prep all the way through to when that bill drops, that continuum of that information being accurate and correct is something organizations already do well now you're adding different technological criteria and different quality to a degree criteria to make those two things be true.

So you gotta retool and reconfigure how well the organization can do that in a very efficient process. So now we have another question for CIOs and CMIOs. Do you have the right EHR infrastructure to support these compensation models or are we adding more complexity without adding value? Which brings up another critical piece of the conversation.

And that's about both physician burnout and physician equity.

Exactly. And we cover this topic. It's just so incredibly important. And I don't think if you talk to any CIOs, they would say that burnout is not on their mind. It's extremely important. And so if compensation is tied to performance, there is that risk that physicians will avoid complex cases that could negatively impact their outcomes.

It's a little bit frightening to think about. , it's often been a concern when it comes to managed care. Value-based care as well is do you avoid the more complex cases because they could be more expensive. So you can't also forget about physicians working in underserved communities if the social determinants of health impact patient outcomes.

And how do we ensure that doctors in low resource areas are not unfairly penalized? That's the last thing anyone wants to happen. So this is where data analytics and health IT teams come into play. So systems need to be designed to account for patient complexity and adjust accordingly. So the bottom line compensation reform needs to be fair, needs to be sustainable, and designed to support, not discourage the delivery of great medicine.

So when we look at what's next, physician compensation reform. Is not a one time event. It's part of a larger transformation in healthcare. You're the CIO, you're the C-T-O-C-M-I-O cso. The groups that we always talk about and cover, here's what they need to be asking one another and sharing more broadly throughout their organization.

Do we have the right technology infrastructure to support these changes? How do we make data tracking as seamless as possible for physicians? And what's our plan for security and AI integration? So many of these aspects are happening in both. Embedded solutions within the EMR, but also point solutions being brought in to address these new opportunities.

All of that is part of that ongoing daily conversation, the organization and it making sure they're partnering effectively within the organization to educate beyond just the conversations that IT team is having. Then at the executive level, leadership teams need to have these conversations now and not when the system is already broken.

And judging by what we're hearing about burnout and seeing with retirement rates that's gonna happen pretty soon. So this is really something that needs to be addressed. I. Because at the end of the day, it's not just how your physicians are getting paid, it's about how we define success collectively within healthcare.

So as IT professionals, we're gonna play a huge role in shaping what that looks like. But then it's also really key to make sure that we are following best protocols and efficiencies that are allowing. All the factors that we are trying to solve for at the same time be solved. Physician compensation's, one more element of that broader equation, and I'm glad it's being discussed.

Because all these efficiencies and tools don't necessarily mean that you're gonna be seeing more patients. It's gonna defeat the purpose of new compensation models, as well as looking for opportunities to avoid burnout. Okay. That's it for today's episode. Join us tomorrow when we discuss funding. Bill Skips measures to avert physician pay cuts, which is a blow to GOP Doctors Caucus.

Remember to share this podcast with a friend or a colleague. Use it as a foundation for 📍 daily or weekly discussions on the topics that are relevant to you and the industry. You can subscribe wherever you listen to podcast. Kate, thank you for joining me. Thank you. Thanks for listening. That's all for now.