Performance-Based Compensation: What is your plan?

If you are a solo provider of mental health services in private practice, you entire income is based on your performance as a psychotherapist or diagnostician or prescriber. There is really nothing between you and your patients. You see them; they are satisfied and continue coming to see you, or they are not and do not return. That is ‘performance based compensation’ of the most basic sort. I have often wondered precisely what others mean by that term.

Earlier this week, I read an article by Sarah Threnhauser of Open Minds that very much enlightened me. Making Performance-Based Comp Plans Work is an excellent look at the compensation plan of Manatee Glens, a specialty hospital and outpatient program in Bradenton, Florida. The article discusses the criteria they use for measuring performance as well as the steps they follow to measure each clinician’s functioning relative to the criteria. One of their measures is number of client no-shows; another is clinician completion of concurrent documentation with the client. Surpassing the criteria results in additional pay to the clinician.

Does your organization use any sort of performance-based compensation? How have you made it fit the personality and structure of your practice or agency? What kinds of functions do you measure? What criteria do you use?

Please share your comments and responses in the comment section below. We would love to have our discussion here on this blog site!


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