Should hospitals pay physician leaders for their extra work? And 3 more questions on the subject

Physicians who spend time on leadership duties increasingly expect to be compensated for performing these “above and beyond” tasks.

It’s hard to blame those who harbor such expectations. Reimbursement is tight, willing doctors are few and far between, and leading a medical staff in any specialty is inevitably burdensome.

And then there’s physician burnout, which was widespread well before COVID came along.

The Credentialing Resource Center (CRC) suggests four questions that hospital leadership would do well to take up as the trend gathers momentum:

1. Should we pay medical staff leaders? “Some medical staffs are unable to get leaders on board unless they offer compensation in the form of a yearly salary, stipend or hourly rate,” the authors write. “So if you’re not offering compensation but want to keep experienced leaders on board, consider it seriously.

2. Which medical staff leaders should we pay? Some hospitals pay only the president of the medical staff, some pay the president and department chairs, and some pay everyone on the medical executive committee, CRC points out. “[We] suggest that you analyze the amount of time these individuals spend on their leadership duties to determine which positions warrant compensation.”

3. How much should medical staff leaders be paid? That depends. How much time are they spending on these duties—and how much can you afford? “Most medical staff leaders know that the compensation they receive will not reimburse them fully for the time they spend on their leadership responsibilities,” the authors comment, “so for most institutions, payment is best approached as a token of appreciation.”

4. Who should pay medical staff leaders? Traditionally paying medical-staff leaders has fallen to the hospital because such duties are generally outlined by a hospital board, the CRC notes. However, from where some medical staffs sit, hospitals that handle the full payment may only do so to “have the leaders in its pocket.” This is why medical staffs are increasingly sharing the tab with the hospital. “Some medical staffs across the country are so opposed to the hospital reimbursing medical staff leadership (and a potential conflict of interest) that they fully fund the cost themselves.”

“In these economic times, we understand that it is difficult to find the monetary sources to fund these positions,” the CRC concludes.

The good news is that many leaders of medical staffs see the work as a labor of love and, as a result, are open to substituting nonmonetary compensation.

“Medical staff leaders want to feel appreciated for the hard work that they do, so another reward might include public recognition of a leader’s efforts,” the authors conclude. “Money is nice, but other forms of recognition may work as well and, in some cases, better.”

Dave Pearson

Dave P. has worked in journalism, marketing and public relations for more than 30 years, frequently concentrating on hospitals, healthcare technology and Catholic communications. He has also specialized in fundraising communications, ghostwriting for CEOs of local, national and global charities, nonprofits and foundations.

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