Fee-for-Value or Pay-for-performance billing models are making waves in healthcare industry and care providers are finding it increasingly difficult to adapt to the changes brought on by them. Most importantly, this change in billing model is accentuating pressure on current workforce and healthcare attrition has seen an all-time high over the past few years. Why fee-for-value model could be encouraging medical staff to leave jobs can be understood with following factors –
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- Role conflict in fee-for-value model – The primary stress generator or dissatisfaction generator in healthcare industry is role conflict or role ambiguity. Former care and billing model was based on fee-for-service concept, wherein every time a service was provided, fee was chargeable. With the focus now shifting to providing value and deriving customer satisfaction; medical staff is finding it increasingly difficult to understand their KRAs and duties.
- Increasing burnout rate – Delivering service and generating value require varying amount of staff commitment. As is, healthcare professionals are prone to faster burnout rate. With pay-for-performance getting introduced into the billing and payout system, medical staff is finding it difficult to justify their efforts with their compensation.
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- Lack of training – Role conflict and burnout is incidentally a result of lack of training. Medical practices and hospitals are adopting fee-for-value billing models without understanding the training need associated with it. Medical staff is essentially trained for providing care and recording delivery of services. In order for them to capture customer satisfaction in their daily job roles, additional induction and training is highly important.
- Lack of understanding – Medical staff is not able to understand the change in payment model as well. How pay-for-performance model can result in increased productivity and efficiency is not understandable for an employee accustomed to receiving fixed remuneration for services.
- Lack of trust in hospital management – Front end staff and technical staff works in silos and both departments operate in a mistrusting environment. Striving towards a common goal of value generation is very difficult for a staff which doesn’t trust the motivation and vision of hospital management.
- Outsourcing of functions and cost constraints – In addition to fee-for-value model; healthcare costs are rising at a rapid rate. Frequent quality audits and government regulations pertaining to value adding medical services are forcing medical practitioners to contain costs. This in turn is resulting in rampant outsourcing of various care functions in order to remain competitive. Therefore, medical staff perceives pay-for-performance as a cost cutting measure instead of an opportunity to perform better and earn more.
Given all these factors, medical practitioners are experiencing rising employee attrition. Timely action to counter dipping employee morale & execute retention strategies can only improve employee retention in healthcare industry.
Medicalbillersandcoders.com is a billing and coding partner that offers the valuable expertise of medical practitioners in training and orientation of in-house medical staff. While a medical practice can outsource some value adding functions, a big percentage of care providing activities are to be delivered by medical staff closely associated with the organization. Medicalbillerandcoders.com assists you in checking employee attrition and developing better understanding of pay-for-performance model to improve employee satisfaction.