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Physicians Practice Management ?Physician’s Practice Management Discussion

Physicians Practice Management ?Physician’s Practice Management Discussion


Major Employment Laws and Steps to Avoid Violations:

Two major employment laws that a medical practice manager could unintentionally violate are the Fair Labor Standards Act (FLSA) and the Family and Medical Leave Act (FMLA).

  1. Fair Labor Standards Act (FLSA): FLSA sets guidelines for minimum wage, overtime pay, recordkeeping, and child labor standards. Violations can occur when employees are misclassified as exempt from overtime, leading to unpaid overtime wages.

    Steps to Avoid Violations:

    • Proper Classification: Ensure that employees are correctly classified as exempt or non-exempt based on their job duties and salary level.
    • Overtime Tracking: Maintain accurate records of hours worked by non-exempt employees and pay overtime for hours exceeding 40 in a workweek.
    • Minimum Wage Compliance: Ensure that all employees are paid at least the federal or state minimum wage, whichever is higher.
  2. Family and Medical Leave Act (FMLA): FMLA provides eligible employees with up to 12 weeks of unpaid, job-protected leave for certain family and medical reasons. Violations can occur when eligible employees are denied FMLA leave or face retaliation for taking such leave.

    Steps to Avoid Violations:

    • Employee Eligibility: Understand and communicate the criteria for employee eligibility for FMLA leave.
    • Proper Notice: Inform employees of their rights under FMLA and provide required notices and forms.
    • Non-Retaliation: Ensure that employees are not penalized, demoted, or terminated for taking FMLA leave.

Comparison of Physician Compensation Models:

The three major physician compensation models are:

  1. Salary Model: Physicians receive a fixed salary regardless of their patient volume or revenue generation.
  2. Productivity Model: Physicians are compensated based on the number of patients they see, procedures performed, or revenue they generate.
  3. Hybrid Model: Combines elements of both salary and productivity, often offering a base salary with additional incentives tied to performance.

Comparison and Recommendation:

Each compensation model has its own advantages and disadvantages. The most effective model for attracting and retaining physicians who would contribute to the practice’s success would likely be the Hybrid Model.


  • Flexibility: The hybrid model offers a balance between stability (base salary) and motivation for performance (incentives), appealing to a wider range of physicians with varying preferences.
  • Performance Motivation: Incentives linked to performance can drive physicians to be more productive, which can positively impact practice revenue and growth.
  • Risk Sharing: The hybrid model allows the practice to align physician compensation with practice performance, sharing the risks and rewards.
  • Equity: Incentives can be tailored to recognize different specialties and contributions, ensuring fairness and reducing potential conflicts among physicians.
  • Attraction and Retention: By offering a competitive base salary and the potential for higher earnings through incentives, the hybrid model can attract skilled physicians and encourage them to stay with the practice for the long term.

In conclusion, the hybrid compensation model strikes a balance between stability and performance-based incentives, making it a compelling choice for attracting and retaining physicians who can contribute to the overall success of the medical practice.

Physicians Practice Management ?Physician’s Practice Management Discussion



Physician’s Practice Management Discussion – Wk 8

“Applying Labor and Employment Laws to Medical Practices”

Employers sometimes violate employment laws because they lack knowledge and understanding of how these laws apply to their workplace. Determine two (2) major employment laws which a practice manager could unintentionally violate. Next, recommend the main steps that the manager should take to avoid the risk of breaking those laws.

According to the text, there are three (3) basic models of physician compensation. Compare and contrast the three (3) major compensation models and suggest which model you think would be most effective in creating a pay structure that would attract and retain physicians who would make the practice successful. Justify your recommendation

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