Most compensation plans use a variation on one of three basic models. One model is called “equal-share”. List two other models and explain how they are used to determine compensation.

Most plans use a variation on one of three basic models: pure salary arrangements that base wages on industry data; equal-share arrangements in which physicians split evenly what remains after expenses;

and pure productivity, or “eat-what-you-kill” models, in which physicians are paid for the revenues they bring into the practice minus expenses. A fourth and rapidly emerging model entails a base salary plus incentives, with a risk pool of financial incentives and/or penalties tailored to each particular group.