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Funds Flow and Compensation Plan Design

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Academic health systems are operating under rising market pressures as traditional funding is becoming constrained and competition for physicians is intensifying.

Chartis helps design funds flow and physician compensation models aligned to your financial investment and institutional priorities, improving transparency and supporting long-term sustainability. 

From misalignment to sustainability

As inflation and rising costs strain margins, health systems are moving past simple cost-cutting to fundamentally restructure their economic models. Organizations are now pressure-testing their funds flow and shifting incentives to ensure every dollar spent directly drives performance and supports the mission.

  • Fragmented funds flow: Funding often operates as a book of deals, with hundreds of individually negotiated arrangements and inconsistent compensation models.
  • Misaligned incentives: Misaligned incentives can impact the link between physician behavior and the organizational needs for growth and margin. 
  • Rising pressure on the largest cost base: As the largest expense for medical groups, physician compensation faces rising pressure from intense market competition.  

Custom-fit solutions for funds flow and compensation design

Chartis brings clarity and structure to complex financial and operational challenges. Through a combination of stakeholder input and rigorous data, analytics, and technology-driven insights, we help modernize funds flow models and physician compensation plans, empowering leadership to operate as one team and drive measurable improvements in productivity, financial sustainability, and organizational alignment. 

Funds flow 

Current state assessment: We combine stakeholder input with detailed analytics, creating a clear view of how current funding models perform against your strategic goals.

Design for mission and performance: We help leadership build tailored funds flow models that align incentives with performance, strengthen collaboration across entities.

Implementation & support: We define clear, actionable next steps that embed the model into daily operations, aligning stakeholders, building confidence, and ensuring the changes are adopted and sustained. 

 

Physician Compensation Planning 

Performance benchmarking: We benchmark faculty productivity and compensation against national market data to identify gaps, inform decisions, and create a more equitable, competitive model. 

Incentive alignment: We help design compensation models that directly link pay to growth and margin goals. 

Pressure testing: We work with your team to model how proposed plans perform under different volume and revenue scenarios.  

Change management: We build consensus with Department Chairs and faculty through transparent communication and collaborative design sessions, building shared ownership of the model.

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Our perspective:

Funds flow should support clinical, research, and education activities intentionally. The same is true for compensation. When both are aligned, the organization can move with clarity. ”

- Michael Tsia, Senior Partner

Frequently Asked Questions

How can academic health systems sustain their research mission? 

Academic health systems can sustain their research mission by designing funds flow models that intentionally connect clinical, research, and education priorities. Chartis helps leadership assess current funding models, align incentives with performance, strengthen collaboration across entities, and operationalize the connection between core academic missions.  

How can physician compensation planning improve faculty practice financial performance? 

Physician compensation planning can improve faculty practice financial performance by aligning pay with productivity, clinical output, growth, and margin goals. Chartis helps leadership benchmark productivity and compensation against national percentiles, identify gaps, pressure test proposed plans under volume and revenue scenarios, and design models that are equitable, competitive, and financially sustainable.  

Can a custom funds flow model provide significantly better outcomes from a traditional arrangement?

Traditional funds flow arrangements are often fragmented, reactive, and built on historical precedents rather than current strategic goals. A custom funds flow model transforms resource allocation from an administrative burden into a powerful strategic lever. 

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The funds flow shift: How academic health systems are reconsidering their models to invest in the future

Market pressures are causing many academic health systems to reevaluate their funds flow models, leading to a shift in mindset and incentives. 

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