Over the past few years, changes in the way primary care doctors are reimbursed (by Medicare and others) are impacting pay models for family doctors and internists. Whether the doctor is an employee or a partner in a physician owned medical group, these reimbursement modifications are having a real impact.
As a compensation professional, I am always interested in any changes (legal, regulatory, economic, societal, etc.) that may influence the way incentive programs are designed, implemented and maintained. Back in 2014, Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) introduced new rules for revenue recognition. The new revenue recognition rules will take effect soon and this new standard will have impacts beyond financial statement preparation. Read on to see what steps companies can be taking now to assess if the changes in revenue recognition will impact their incentive programs.
Whether you have a current incentive plan or are in the process of creating a new one, there are many things to consider to ensure the plan promotes intended behaviors and drives business success. As a starting point for the incentive plan design (or redesign) process, here are my top 10 questions to ask when you’re developing broad-based and/or sales incentive plans: