Geisinger Says No Thanks to Performance Bonuses for Physicians

Geisinger Health System is turning away from industry trends that see physicians being paid bonuses tied to quality and patient satisfaction, instead vowing to pay them straight salaries that are at or above national averages for compensation. Previously, Geisinger has paid their 1,600 physicians—including those staffing their urgent care centers—based on a formula of 80% salary and 20% performance bonus, as is common these days (though the percentages may vary somewhat from system to system). That trend grew out of a movement for institutions and providers to take on more risk in return for more reward in caring for certain populations under the Affordable Care Act (ACA, or “Obamacare”). With an uncertain future for the ACA, and not knowing what may replace it, however, it’s unclear whether performance-based incentives continue to be attractive to other operators.