Faced with increasing demand for services, Mercy Hospital had recently changed provider compensation to increase provider productivity. They found that after introducing changes, their actual costs went up substantially without impacting provider productivity.

RHS, with experience with hundreds of provider groups across the country, analyzed the compensation model, made recommendations, and then helped Mercy Hospital implement those changes, working directly with each of the providers.

The productivity model was successfully changed, and provider productivity increased 8%. With the increase in productivity, the compensation model yielded higher provider compensation while still reducing overall cost of care. Mercy’s CEO said, “RHS’ physician leadership was a big differentiation from other consulting firms in dealing with our provider compensation model. They had the experience and were able to move us across the finish line with minimal disruptions. And our providers were happier with the new model. We were very satisfied with RHS’ guidance and support.”