Physician Compensation and Payroll Audits For Clinicians

Payrolls audits for clinicians is crucial for healthcare organizations to make sure that physician payments are accurate, on time, and in compliance with all applicable laws and regulations. Here are a few suggestions and general steps involved in performing payroll audits for clinicians’ compensation:

The Roadmap to Successful Payroll Audits for Clinicians: Step-by-Step Guide

Identify the Scope and Objectives

The first step is to define the scope and objectives of the payroll audits for clinicians. This includes identifying the specific physician payments that will be audited, such as salaries, bonuses, incentives, and benefits.

Review Relevant Policies and Procedures

Hospitals should review their policies and procedures related to physician compensation to ensure they are up-to-date and consistent with industry standards and applicable laws and regulations. This includes reviewing physician service agreements and contracts, physician timesheets, and other documentation via a physician compensation management software.

Gather Relevant Data

Hospital team members involved in the payroll audits for clinicians should gather and amalgamate the necessary data and documentation related to physician compensation. This consists of payroll records, physician invoices, billing and coding data, and any other financial data related to physician payments.

Analyze Data

Once the data has been compiled, the auditor will analyze it to identify any discrepancies, errors, or potential compliance issues. This may involve reviewing billing and coding practices, comparing payments to contractual agreements, and identifying any potential overpayments or underpayments.

Review Internal Controls

Healthcare organizations should review their internal controls related to physician compensation to ensure that they are effective in preventing errors, fraud, and non-compliance. This includes reviewing the hospital’s financial reporting processes, segregation of duties, and other internal control procedures.

Read: The real costs of non compliance in healthcare

Identify Potential Risks

Hospitals should identify potential risks related to physician compensation, such as overpayments or underpayments, activity logs, and physician timesheets, inaccurate billing and coding practices, or other compliance issues. This can be achieved through a risk assessment or internal audit of physician compensation practices.

Develop an Action Plan

Based on the review of policies, procedures, data, internal controls, and potential risks, hospitals should develop an action plan to address any identified issues or gaps in their physician compensation practices. This may involve revising existing policies and procedures, implementing new controls, or providing necessary training to staff.

Engage External Auditors

Hospitals may engage external auditors to perform a payroll audits of their physician compensation practices. This can provide an objective assessment of the hospital’s compliance with applicable laws and regulations, as well as provide recommendations for improving physician compensation practices.

In addition to all of the items mentioned above, it is also important to communicate the findings of these payroll audits for clinicians and recommendations to hospital leadership and relevant stakeholders. The implementation of the recommendations that have been approved needs to be monitored so as to ensure that they are effective in addressing the identified risks and control gaps. Follow us on X and on LinkedIn for more.