HCF Enhancement, LLC

HCF Enhancement, LLC Art Pellett, MBA – Principal

Improving medical practice bottom lines

through strategic financial tools and results focused management

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Net Income Guarantee & Benchmark Program

Services and Programs – For the complete list of HCF Services and Programs click here

Net Income Guarantee & Benchmark Program –

A performance enhancement program for hospital administrators and their new physician recruits

“Hospitals take giant risks every day by rewarding their new, unproven revenue sources (physicians) with income guarantees that require little other than that the recruit show up. No other business I am aware of recruits its staff with a guaranteed income and signing bonus, and then leaves them alone for the next year or two to figure it all out for themselves. With today’s shrinking reimbursement pool, there’s too much at stake. It’s time hospitals take a more involved approach, monitor their new physicians, and give them informative feedback to make them successful business people.”

* How does the Net Income Guarantee component work?

Each month HCF Enhancement collects and consolidates the practice’s data for determination of monthly net income payments. Balances are calculated and a timely check request along with backup data is sent to the hospital for processing.

How does the Benchmark component work?

We then use additional data we have collected to generate a set of approximately twenty, easy-to-follow tables and graphs showing the new practice’s past and current financial and activity performance results, relative to national performance benchmarks for the given specialty.

This latter report, showing performance, is then passed on to both the hospital and the physician providing helpful feedback to both. Reports are delivered within 30 days of receiving original data.

To see some examples from the Benchmark part of the program and how benchmarks may be applied, click here.

How does the Feedback loop work?

The program sets goals for the physicians based on medical management standards for performance in the first, second, and established periods of their career. The feedback program is based on the premise that new physicians (or any new business for that matter) need to regularly know how they are progressing so they may improve. A report is sent to the new physician monthly showing them how they are doing currently against these standards, and for each prior month.

Using a color key, each performance category is tracked over time and the trend is color coded. Green indicates the physician is moving forward on-track, yellow means progress is acceptable but needs watching, orange means attention is needed, and red indicates corrective action recommended.

Interested parties can quickly scan the color codes for problem areas then zoom to the historical performance detail, found on the same page. Click here to see a sample historical detail report using the color key.

This report is sent to both the hospital administrator (or his/her designee’) and the physician so that interested parties may take initiative to discuss appropriate future action.

* Is the Macro Solution Program Expensive?

Before I answer this question, may I pose another? “Is a new physician, who has a practice that is failing, expensive?”

Like all of our programs, we have designed this program to pay for itself in value back to both your hospital and the practice. The hospital benefits by protecting its investment while the new recruit benefits from having clear goals than may encourage forward movement toward a successful business.

The Net Income Guarantee & Benchmark Program is designed to be easy to administer. As a result, we can offer it at a very reasonable, affordable rate – typically a small, marginal percentage of the guarantee itself. Contact HCF Enhancement, LLC for specific rates for your particular market.

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