In order to ensure that a physician practice performs well financially and operationally, one aspect that must be considered is the compensation methodology chosen to pay the physician. This methodology could be based on financial factors such as revenue or net income produced. Alternatively, the model could be based on productivity or quality/patient satisfaction of some combination of the above. This following assignment will involve you taking a closer look at these methodologies and determining which you believe is best among the choices given. Although there is not necessarily one correct answer, finding the methodology that fits best for the physicians is very important in ensuring best or desired performance by the physician.

**Recommend the system that you believe is best for Bangor Family Physicians. In addition, discuss why managing a physician practice and maintaining the appropriate amount of productivity can be a significant challenge for any organization or group of individuals.

QUESTION

*** What would be the recommended system (Revenue model, net income model, base salary plus productivity model or multiple factor performance model) best for Bangor Family Physicians and why managing a physician practice and maintaining the appropriate amount of productivity can an important challenge for an organization? I believe the Multiple factor performance model would be best for Bangor Family physicians but why?