Compensation Planning Application

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 improvementplans.

• On-boarding new physicians.

We believe physician organization leaders need to focus more on leading the organization and less on the administrative components of their position.

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 compensationplans.

• 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.

Compliance

Transparency

Efficiency and Simplicity

Market-Competitive

Adaptable

Common Pillars of Physician Compensation

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.

Heisenberg II Leadership Dashboards

Heisenberg II has customizable dashboards to assist leaders in managing their physician organization.

Dashboard with drill-down capability.

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.

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.

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.

Heisenberg II Creating Compensation ModelsHeisenberg II allows you to capture contractual terms for various compensationmodels.

The Heisenberg II engine allows customization of annual raises depending on user input and market parameters.

Heisenberg II allows for the rapid development of compensation plans.

The system has a series of predefined as well as customizable pay elements.

Heisenberg II Physician Performance Tracking

Both administrators and physicians can compare performance against budgeted or projected levels of activity. Monitoring actual vs.

projected collections.

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 theorganization.

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.

Heisenberg II CPT Volume Reporting

Heisenberg II can aggregate CPT volumes at the physician level.

CPT summary breakdown report by physician.

Heisenberg II Physician Setup

Users can easily add new physicians to the Heisenberg II application.

Physician profile setup.

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.

The Process Compensation Planning and Administration

Compensation Planning Physician CompensationAdministration

Develop Plan Monitor Physician PerformanceandBonus Eligibility

Review Existing Compensation Plans

Conduct Market Rate Analysis

Conduct Scenario Analysis With Different Plans

Conduct Scenario Analysis With Different Plans

Conduct Market Rate Analysis

Track Shadow Plans

Finalize Contract Draft New Compensation Plan

Reconcile Compensation andContract

Reconcile Payrolland Compensation

Calculate Compensation

Heisenberg II helps bridge the gap between compensation planning and administration.

Design ImplementationAssessment

The Process Impacts

Internal Organizational

AnalysisTransition Planning

Compensation Methodology Goals

and PrinciplesEndorsement

External Market Comparison

Contract Management and

Payment Reconciliation

Heisenberg II Impact

Development and Analysis

of Alternatives

Selection and Revision of

Compensation Method

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.

Benefits

Challenge Heisenberg II Benefit

Manual Processes

Provides customized automation of compensation plan calculations, market rate compliance, projected physician performance, contract management, and payment reconciliation.

Long Turnaround

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 performanceagainstthe selected compensation plan.

Lack of Transparency

Allows physicians and administration to clearly understand performance implications by providing automated, real-time reports.

Heisenberg II can provide organizations with a more seamless compensation planning and implementation process, addressing many of the challenges identified in previous slides.

Benefits - How Heisenberg II Can Help Organizations

Payment Reconciliation and Administration

• Provides real-time reporting of physician performance andresulting 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 for review.

Function Features

Application Development Phases

Features

Phase I • Contract repository and management tool.• Physician compensation calculator and adjudication.• Reconciliation of budget to actual andpayroll.• Real-time dashboards for physicians andadministration.• 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 shadowplans.

Heisenberg II provides role-specific, Web-based tools for administrators to improve their ability to manage and communicate physician compensation plan components and methodologies.

Software as a Service

• 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.

Traditional 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 providedthrough server-intrusion preventionand scanning for more than 70,000vulnerabilities.

• 100% network uptime guaranteed,coupled with 99.9% server uptimeguarantee.

Cloud computing ensures scalability of the scheduling system to multiple locations/department s, real-time update of data, and 99.9% availability.

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.

ScalabilityThe 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.

MobilityIncreasing 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 TimeAlso 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.

Why Hallmark

• Hallmark is a leader in artificial intelligence-based 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.

Hallmark’s new-generation technologies, provides hospitals with a unique physician compensation solution that is strategically designed and tactically implemented.