Compensation Planning Application

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1 Compensation Planning Application

2 Why Physician Compensation? More and more organizations are formally aligning with physicians. These organizations require large support structures to effectively manage their physician organizations. Contract management. Compensation plan development and revision. Physician payment adjudication. Market rate identification and fair market value. Access productivity, quality, and other physician performance data in a timely manner. Identify productivity trends and develop improvement plans. On-boarding new physicians. We believe physician organization leaders need to focus more onleading the organization and less on the administrative components of their position.

3 Physician Compensation Challenges Disconnected systems and manual processes result in significant challenges with developing and administering market-competitive, legally compliant compensation plans. Challenges Manual processes and tools to develop and administer compensation plans. Minimal reconciliation between payroll system and your physician compensation system. Inability to produce real-time performance results for physicians. Minimal transparency between the administration and physicians related to the plan s functionality. Maintaining contracts as PDFs, with manual entry of contract terms into the physician compensation system, increasing chances of error. Disconnect between contracts (terms) and compensationcalculation. Long turnaround times in the design and review of compensationplans. Common Pillars of Physician Compensation Compliance Transparency Efficiency and Simplicity Market-Competitive Adaptable

4 Heisenberg II Heisenberg II provides administrators and physicians with a cloud-based solution for managing and administering physician compensation. Heisenberg II is a cloud-based solution that provides a secure login to organizational administrators and physicians.

5 Heisenberg II Leadership Dashboards Heisenberg II has customizable dashboards to assist leaders in managing their physician organization. Dashboard with drill-down capability.

6 Heisenberg II Physician Contract Review Heisenberg II provides administrators with the ability to rapidly review contract performance. Physician contracts can be easily viewed and managed for any given period.

7 Heisenberg II Physician Payment Reconciliation The application will allow administrators to calculate compensation and reconcile payments to physicians. Allows forpayroll reconciliation. Automated quarterly reconciliation process for compensation.

8 Heisenberg II Physician Payroll Report Physicians and administrators can use the application to better understand and track their compensation plan performance. Physician s payroll report lists line-item details.

9 Heisenberg II Creating Compensation Models Heisenberg II allows for the rapid development of compensation plans. Heisenberg II allows you to capture contractual terms for various compensationmodels. The system has a series of predefined as well as customizable pay elements. The Heisenberg II engine allows customization of annual raises depending on user input and market parameters.

10 Heisenberg II Physician Performance Tracking Both administrators and physicians can compare performance against budgeted or projected levels of activity. Monitoring actual vs. projected collections.

11 Heisenberg II Compensation and Performance: High Visibility Heisenberg II provides users with the ability to view compensation and performance at a granular level. Compensation calculated (productivity-tiered pay details) provides high visibility to both the physicians and the organization.

12 Heisenberg II FTE Status and Compensation Categories Heisenberg II allows users to examine FTE status using actual compensation in additional budgeted levels. Detailed breakdown helps with devising better compensationplans.

13 Heisenberg II CPT Volume Reporting Heisenberg II can aggregate CPT volumes at the physician level. CPT summary breakdown report by physician.

14 Heisenberg II Physician Setup Users can easily add new physicians to the Heisenberg II application. Physician profilesetup.

15 Heisenberg II Physician Contract Document Creation Once the compensation plan is developed, Heisenberg II can generate exhibits for approval and distribution. Compensation terms can be generated and exported to multiple formats.

16 The Process Compensation Planning and Administration Heisenberg II helps bridge the gap between compensation planning and administration. Compensation Planning Develop Plan Conduct Market Rate Analysis Review Existing Compensation Plans Conduct Scenario Analysis With Different Plans Physician Compensation Administration Monitor Physician Performanceand Bonus Eligibility Calculate Compensation Conduct Scenario Analysis With Different Plans Track Shadow Plans Conduct Market Rate Analysis Finalize Contract Draft New Compensation Plan Reconcile Compensation and Contract Reconcile Payroll and Compensation

17 The Process Impacts Heisenberg II will provide an automatic solution for the activities in the blue boxes, while creating efficiencies related to the processes in the blue/green boxes. Assessment Internal Organizational Analysis Compensation Methodology Goals and Principles Development and Analysis of Alternatives Design Selection and Revision of Compensation Method Implementation Transition Planning Endorsement External Market Comparison Contract Management and Payment Reconciliation Heisenberg II Impact

18 Benefits Heisenberg II can provide organizations with a more seamless compensation planning and implementation process, addressing many of the challenges identified in previous slides. Challenge Manual Processes Long Turnaround Heisenberg II Benefit Provides customized automation of compensation plan calculations, market rate compliance, projected physician performance, contract management, and payment reconciliation. Decreases time for plan development, redesign, and updates by reducing the need for manual processes and tools. No Real-Time Results Allows for real-time tracking of physician performance against the selected compensation plan. Lack of Transparency Allows physicians and administration to clearly understand performance implications by providing automated, real-time reports.

19 Benefits - How Heisenberg II Can Help Organizations Function Payment Reconciliation and Administration Features Provides real-time reporting of physician performance and resulting compensation. Utilizes actual data from the current performanceyear. Market Rate Analysis Tests the compensation plan relative to the market while the plan is being developed. Continually tracks the plan against market-based standards to account for changes in benchmark data, organizational standards, and revisions to the compensationplan. Plan Development Creates a single portal for all plan data that is easily accessible by providers and administration. Allows for transparent sharing of information among all parties. Plan Implementation Allows all parties to track performance under the new or current plan based on actual compensation components (e.g., productivity). Allows real-time model design changes to be made rapidly, with results readily available forreview.

20 Application Development Phases Heisenberg II provides rolespecific, Web-based tools for administrators to improve their ability to manage and communicate physician compensation plan components and methodologies. Features Phase I Contract repository and management tool. Physician compensation calculator andadjudication. Reconciliation of budget to actual and payroll. Real-time dashboards for physicians and administration. Interfacing and/or file extraction with existing information systems. Phase II Benchmarking and identification of market rate ranges. Automated contract terms extraction. Phase III Development of distribution models and ability to test multiple scenarios. Ability to develop shadow plans.

21 Software as a Service Cloud computing ensures scalability of the scheduling system to multiple locations/department s, real-time update of data, and 99.9% availability. Traditional Software Up-front fee, with 18% to 20% annual maintenance fee charged. Additional hardware investment required. Data usually hosted at client site; limited or no provision for data backup. No security feature provided. Client has to wait for support personnel when there is a problem with the software. Software as a Service No up-front or maintenance fees. No hardware required. 24/7 data backup and recovery services provided through SAS 70 certified data-hosting center. Advanced server security provided through server-intrusion prevention and scanning for more than 70,000 vulnerabilities. 100% network uptime guaranteed, coupled with 99.9% server uptime guarantee.

22 Software as a Service (continued) Security Heisenberg II is hosted on an SAS 70 certified server. Since its cloud computing infrastructure is continuously updated to meet the security requirements of the healthcare industry, hospitals do not incur additional costs for compliance. Reliability Data stored in Heisenberg II is backed up on a 24/7 basis across multiple locations in the United States. In the case of a natural disaster, all required data can be recovered from the backup servers within a few hours. Scalability The Heisenberg II compensation system can be extended to any number of locations, departments, and provider types. The software can be scaled to accommodate the future growth of clients without the need to set up new servers or make additional investments. Mobility Increasing demand for flexibility from physicians and administrators means that the users can access the Heisenberg II compensation system from any mobile device to indicate availability/unavailability or view the schedule. Since Heisenberg II is hosted on the cloud, the system can be accessed from any device (telephone, ipad, laptop, desktop) with an Internet connection. Real Time Also because Heisenberg II is hosted on the cloud, any data changes are updated in real time, and the new data is made available to all users. This enables users to run real-time reports on productivity, quality, and compensation performance. Furthermore, any new releases will be automatically and seamlessly distributed to all users.

23 Why Hallmark Hallmark s newgeneration technologies, provides hospitals with a unique physician compensation solution that is strategically designed and tactically implemented. Hallmark is a leader in artificial intelligencebased products, solutions and consulting for the healthcare industry. Developed Heisenberg II using industry best practices Provides customizable solutions that allow clients to successfully execute and monitor their physician compensation strategy. Has over a decade of experience with cutting-edge technology in healthcare.

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