Annualized cARP program funding provides physicians with stable funding for direct and indirect care, unlike fee-for-service (FFS), in which compensation varies with the volume of submitted claims.
- Physicians or the Health Service Delivery Organization (HSDO) determine how annual hours are allocated, how many hours each physician will work and when they are scheduled.
- Defined by annual service hours, the model is physician-led and can be tailored to specific services and populations, providing flexibility and operational efficiency to meet patient needs.
Physician groups need to agree on how to compensate physicians after overhead deductions. The most suitable approach is the one that best aligns with your group’s circumstances, sustainability goals and shared principles of fairness and accountability
The options outlined below are examples and are not prescriptive. Physician groups are encouraged to assess their own clinical model, cash-flow realities, risk tolerance, governance structure and preferences when determining the most appropriate payment approach.
Internal Payment Template (Excel)
Each model carries different financial, operational and relational implications. Groups should carefully review these considerations and may wish to seek financial, legal or accounting advice before finalizing a payment distribution method.