Current Issue in Compensation and benefits
Management 752
Case Study
MGOA
Qian QIAN
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1) Key problems faced by MOGA
Currently Dr Rubash is facing the challenge of turning MGOA into “a success story” similar to former financial stability. He plans to pay physicians based on their performance in order to motivate all the doctors. It is proposed to reallocate department costs to doctors and eliminate the salary protection of low performance. The plan intends to reward physicians by numbers of surgeries they operate which are related to doctors’ clinical productivity closely. But on the other hand, this gives a cold shoulder to other clinical endeavors made by medical teaching or R&D.
2) Recommendation
The four parts of pay plan are rather complete and could really encourage some of the doctors with good performance and maybe enable the group to achieve the mission and commitment. However, Dr Rubash does underestimate the necessary power from other medical research activities. The research team could also help MGOA to win a sound reputation and in the long run bring the organization bigger output of patients. A reasonable increase of research benefits would indirectly lead to a growth in revenue.
Second, with the bonus calculation formula, the more capable and productive physician is probably getting the bigger amount of compensation. I believe this does not help to control over salary and over bonus because other research doctors might have kept different opinions and taken it as a negative program. Some doctors might have contributed much time with hard work and high cost to non-clinical activities. They would possibly find it unfair to reimburse the group for fund tax.
What’s more, some big surgeries like heart attack, cerebral vascular operations cost couples or dozens of hours. It cannot rank together with general small surgical operations which might be completed within 30 minutes. The number and quality of operations are not