Provider Compensation Planning & Design

Developing a Compelling and Compliant Provider Compensation Package

The staffing challenges seen across the healthcare industry are even tougher for a rural or community hospital, especially when combined with operational issues, increased inflation, decreased reimbursements, and increased wage expectations. To overcome these hurdles and provide quality care to its community, a rural hospital must have a strategic and compelling compensation strategy that complies with federal regulations.

Developing or altering a provider compensation strategy can be a very delicate and challenging task for a rural & community hospital to tackle. With years of experience in compensation strategy for rural providers, Stroudwater’s experienced healthcare consultants help hospitals and physician practices align their provider compensation strategies with industry best practices to ensure equitable, competitive, and compliant policies. We ensure the compensation strategies are sustainable, align with your organization’s overarching organizational goals and market expectations, and support your hospital in recruiting and retaining high-quality providers to meet organizational and community needs.

Having a partner with deep knowledge and understanding of the operational, financial, clinical, and strategic drivers for rural & community hospitals is critical to ensuring a successful compensation strategy that helps the hospital attract and retain needed physicians and create a culture of alignment. Our advisors understand the vital relationship between rural communities and their providers, the challenges of drawing providers to rural communities, and the powerful impact those relationships can have on all parties involved.

The Provider Compensation Planning & Design Process

Stroudwater brings a multidisciplinary perspective to the provider compensation planning and design process that is highly focused on the strategic, operational, clinical, and financial areas of a rural hospital while considering the evolving regulatory environment. We collaborate closely with hospital leadership to aid with minor adjustments to current plans or significant strategic modifications to provide solutions that align with the hospital’s unique cultural, operational, financial, and market conditions.

The Provider Compensation planning and design process is extraordinarily unique to each hospital. As a Stroudwater Associates partner, you can expect a personal and thorough provider compensation strategy process that explores the following(all are optional based on the final contract agreements with Stroudwater Associates):

Stroudwater consultants will research the rural & community hospital’s market, provide education on those results, conduct thorough provider contract reviews, hold in-depth interviews with leadership and providers, and then deliver a detailed report on the results that includes recommendations for the next steps.

Stroudwater consultants review employee benefits relative to industry and regional benchmarks while comparing them to competitor data. Based on this data, Stroudwater consultants can make recommendations to mitigate risks under Stark Law and Anti-Kickback Statutes, as well as nondiscrimination rules under Cafeteria and ERIS plan regulations, as applicable.

Our team will develop an implementation plan for bringing provider contracts from the existing state into alignment with the overall compensation strategy. We can also work with the operations and administrative teams to develop tools to enhance contract management.

Our team will provide fair market valuation opinions regarding the contracts currently in place, with a compensation planning and design process is modified according to the rural hospital’s unique needs.

The Physician Compensation Planning & Design Team



Physician Practice


Physician Practice

Contact Stroudwater To Start Or Modify A Provider Compensation Plan

Our team helps rural & community hospitals develop compelling and compliant provider compensation packages that support and align with the organization’s overarching goals and market expectations. To learn more about how we can work together, fill out the form.

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