Challenge
When Allen Parish Community Healthcare (APCH), a 49-bed short-term acute care hospital in Louisiana, completed construction on a new surgical unit in August 2024, it marked a significant investment in the future of rural healthcare delivery in the region. But there was one problem: no providers were under contract to staff the program.
To transition from infrastructure to impact, APCH required more than just traditional recruitment support. The hospital needed a compensation plan for its advanced practice providers and physician specialists, one that could attract the appropriate specialists, align with the realities of the rural market, and comply with complex regulatory requirements.
Engagement
APCH engaged Stroudwater Associates in October 2023 to build a provider compensation and contracting framework tailored to its clinical, financial, and operational goals. With extensive expertise in rural healthcare, Stroudwater served as an extension of the APCH leadership team, moving quickly and strategically toward program readiness.
Approach
Stroudwater met weekly with APCH to guide the development of a clear, compliant, and data-driven compensation strategy for the surgical program. The hospital had already identified the core specialties it aimed to offer, including ENT, general surgery, OB/GYN services, orthopedics, and radiology. Anesthesiology coverage through certified registered nurse anesthetists (CRNAs) was also required.
To support recruitment and readiness, Stroudwater:
- Determined the number of days per week each specialty would be needed, differentiating between surgical and clinic days
- Conducted fair market value (FMV) analyses for each specialty to ensure compensation aligned with regulatory and market standards
- Reviewed provider benefits relative to industry and regional benchmarks, identifying potential risks under Stark Law, Anti-Kickback Statutes, and ERISA/Cafeteria plan rules
- Collaborated with APCH’s legal team to draft provider contracts and term sheets
- Met directly with prospective physicians to review contract terms and support recruitment efforts, evaluating both employment and independent contractor options for each provider
- Provided implementation recommendations and tools to support contract management and long-term alignment
The result was a compensation framework built around local realities, compliant structures, and clearly defined expectations—critical for both recruitment and operational planning.
Results
By January 2025, APCH had successfully contracted ENT, OB/GYN, general surgery, radiology, and orthopedic physicians to deliver services at the hospital. The organization also secured CRNA coverage to support its anesthesiology services. The surgical program officially launched with a ribbon-cutting ceremony, turning a capital investment into a staffed and sustainable service line.
Conclusion
APCH’s experience illustrates how a compensation-focused strategy can unlock access to care in rural settings. With Stroudwater’s guidance, the hospital moved from a newly constructed unit to a fully staffed surgical program, backed by a clear, compliant, and market-informed compensation framework.
To learn more about Stroudwater’s provider compensation services, click here.
