The way hospitals approach physician compensation is changing under the value-based healthcare initiatives. At the Becker's Hospital Review 5th Annual CEO+CFO Roundtable on Nov. 9 in Chicago, Steve Rice , area president, physician services of Integrated Healthcare Strategies, and Steve McCamy, president and CEO of Covenant Medical Group, Covenant Health in Lubbock, Texas, discussed physician pay in today's changing market.

Physician compensation contracts must fall within fair market value and support commercially reasonable rates.

Most hospitals are slowly moving toward value-based compensation as they take on more risk and develop new strategies for the changing market. Both primary care physicians as well as surgical and medical specialists maintain primarily productivity-driven compensation with work relative value units. Data from the 2016 Gallagher Integrated Survey showed 83 percent of primary care physicians, 87 percent of medical and 86 percent of surgical physicians report compensation plans that include productivity. Read More