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  • April 2021
  • Article

Today's Surgeon Compensation Models Fall Short: Aligning Incentives to Create More Equitable and Value-based Compensation Models

By: Susanna Gallani, Mary Witkowski, Lauren Haskins, Haley Jeffcoat, Vinita Mujumdar and Frank Opelka
Modern medicine is undergoing a transformation that involves innovative surgical approaches, increased medical treatment options, clinical care pathways that require collaboration beyond hospital walls, and health data captured by electronic health records and other... View Details
Keywords: Physician Compensation; Surgeons; Health Care and Treatment; Business Model; Compensation and Benefits
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  • February 1999 (Revised October 1999)
  • Background Note

Note on Physician Compensation and Financial Incentives

By: Richard M.J. Bohmer and Melanie M Harshbarger
A review of the use and effectiveness of financial incentives in changing physician behavior. View Details
Keywords: Change; Finance; Compensation and Benefits; Performance Effectiveness; Behavior; Motivation and Incentives
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  • September 2003 (Revised October 2005)
  • Case

Performance Pay for MGOA Physicians (A)

Examines the transition of an orthopedic surgical group at a premier teaching and research hospital from a system in which the surgeons are compensated with flat salaries to a system where they are compensated based on profitability. Allows for an examination of... View Details
Keywords: Value Creation; Motivation and Incentives; Nonprofit Organizations; Health Care and Treatment; Compensation and Benefits; Health Industry
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  • 13 Aug 2024
  • Op-Ed

Can AI Save Physicians from Burnout?

many patients as possible. Rewards for quality and value creation are rare, if at all present, in physician compensation plans. As time previously devoted to compiling EMR documentation becomes available,... View Details
Keywords: by Susanna Gallani, Lidia Moura, and Katie Sonnefeldt; Health
  • October 16, 2024
  • Article

Physicians Can Help Cut Costs. They Just Need the Right Incentives.

By: Susanna Gallani and Derek A. Haas
Health care organizations have long tried to enlist physicians in their effort to control or reduce costs. One effective means for doing so is to create an incentive system that rewards physicians for their contributions. To design such a system, organizations should... View Details
Keywords: Cost; Motivation and Incentives; Compensation and Benefits; Health Industry
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  • 2023
  • Article

Conduit Incentives: Eliciting Cooperation from Workers Outside of Managers' Control

By: Susanna Gallani
Can managers use monetary incentives to elicit cooperation from workers they cannot reward for their efforts? I study “conduit incentives,” an innovative incentive design, whereby managers influence bonus-ineligible workers’ effort by offering bonus-eligible employees... View Details
Keywords: Organizational Behavior Modification; Peer Monitoring; Persistence Of Performance Improvements; Crowding Out; Implicit Incentives; Compensation; Healthcare; Social Pressure; Image Motivation; Incentives; Motivation; Performance; Behavior; Motivation and Incentives; Compensation and Benefits; Governing Rules, Regulations, and Reforms; Organizational Culture; Health Industry; California
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  • February 2000 (Revised April 2001)
  • Case

Boston Medical Group

By: Richard M.J. Bohmer and Bruce L. Hall
Describes the structure of a variable compensation plan for physicians implemented by a Massachusetts medical group practice. Examines issues such as balancing group and individual risk and selection of performance metrics (productivity and patient satisfaction). View Details
Keywords: Customer Satisfaction; Health Care and Treatment; Executive Compensation; Management Practices and Processes; Risk Management; Standards; Risk and Uncertainty; Health Industry
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  • June 2024
  • Article

Enhancing Value and Well-Being: The Basket of Motivators Framework for Aligning Neurology Clinical Practices with Performance Outcomes

By: Peter N. Hadar, Susanna Gallani and Lidia Moura
Physician burnout, which is prevalent in neurology, has accelerated in recent years. While multifactorial, a major contributing factor to burnout is a payment model that rewards volume over quality, leaving physicians overburdened and unfulfilled. The aim of this... View Details
Keywords: Compensation and Benefits; Personal Development and Career; Well-being; Motivation and Incentives
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  • 22 May 2020
  • In Practice

Post-COVID Health Care: More Screens, Less Red Tape?

Gallani: Physician pay will get a closer look The COVID-19 crisis has highlighted the problems of compensation based on relative value unit (RVU) as never before. Hospitals have been overwhelmed with... View Details
Keywords: by Danielle Kost
  • Research Summary

Current Research

Ian studies extrinsic rewards -- monetary incentives from formal compensation systems, as well as other formal and informal external rewards-- in order to help businesses understand the tensions and tradeoffs inherent in motivating employees. His research takes a... View Details

  • September 2003 (Revised January 2005)
  • Case

Bridges to Excellence: Bringing Quality Health Care to Life

By: Richard M.J. Bohmer, Ingrid Marie Nembhard and Robert Galvin
General Electric launched Bridges to Excellence Diabetes Care Link, a program through which enrolled physicians receive bonuses of up to 10% of their salary for delivering quality care to diabetic patients covered by a participating employer or health plan. A day... View Details
Keywords: Health Care and Treatment; Motivation and Incentives; Programs; Ethics; Quality; Moral Sensibility; Service Delivery; Compensation and Benefits; Health Industry
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  • 03 Aug 2010
  • First Look

First Look: August 3

proprietary technology, athenaNet, to a new business, athenaHealth, that would help physicians manage their practice, billing, and revenue cycles and maintain electronic patient records more efficiently and cost effectively using the... View Details
Keywords: Martha Lagace
  • 09 Oct 2018
  • First Look

New Research and Ideas, October 9, 2018

press Compensation & Benefits Review Winning the War for Talent: Modern Motivational Methods for Attracting and Retaining Employees By: Thibault-Landry, Anais, Allan Schweyer, and Ashley V. Whillans Abstract—Given the struggle that... View Details
Keywords: Dina Gerdeman
  • 21 Feb 2005
  • Op-Ed

Is Business Management a Profession?

every medical student is now required to master. The medical school curriculum proceeds from the premise that in order to diagnose and treat disease, the would-be physician must have a firm grounding in what science (or, perhaps more... View Details
Keywords: by Rakesh Khurana, Nitin Nohria & Daniel Penrice
  • 04 May 2010
  • First Look

First Look: May 4

increased scope for markets, and distrust of markets generally. Our results suggest that while the public is potentially receptive to compensating kidney donors, among those who oppose it, general disapproval towards certain kinds of... View Details
Keywords: Martha Lagace
  • 27 Oct 2009
  • First Look

First Look: October 27

School Case 910-008 eBay considers adjustments to the structure and rules of its affiliate marketing program, eBay Partner Network (ePN). In particular, eBay reevaluates affiliate compensation structure, the role of bonuses for especially... View Details
Keywords: Martha Lagace
  • 05 Aug 2002
  • Research & Ideas

Are Consumers the Cure for Broken Health Insurance?

similar ways for a limited array of traditional services, and last for only one year. In essence, managed care comes in just two flavors: plans that place constraints on access to physicians and hospitals for a lower price, and plans that... View Details
Keywords: by Regina E. Herzlinger
  • 15 Dec 2015
  • First Look

December 15, 2015

grounded in the competitive dynamics that may otherwise drive a race-to-the-bottom. Publisher's link: https://www.hbs.edu/faculty/Pages/item.aspx?num=50203 forthcoming Journal of Business Ethics Corporate Governance and Executive View Details
Keywords: Carmen Nobel
  • 26 Sep 2017
  • First Look

First Look at New Research and Ideas, September 26, 2017

Business Review What’s the Right Kind of Bonus to Motivate Your Sales Force? By: Chung, Doug J., and Das Narayandas Abstract—Companies typically compensate their sales force by using some combination of salary, commission, and bonuses,... View Details
Keywords: Sean Silverthorne
  • 06 Nov 2007
  • First Look

First Look: November 6, 2007

the (A) case by revisiting the hospital to find out what happened as a result of the ambitious change program launched over eight years earlier. It elaborates the ways in which Children's COO Julie Morath seeks to continue to improve hospital operations by involving... View Details
Keywords: Sean Silverthorne

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