How LOGEX Capacity Model supports OLVG hospital with an entrepreneurial employment agreement for medical specialists
About the client
OLVG is a large top clinical hospital in the heart of Amsterdam. OLVG employs about 400 medical specialists spread over the two main locations in Amsterdam East and West. The majority of the specialists work with an entrepreneurial employment agreement.
LOGEX has supported the OLVG since 2012 with the distribution of the income of medical specialists, and since 2017 also supports the Planning and Control department in getting grip on the annual financial cycle.
The OLVG is part of the Santeon network, consisting of seven top clinical hospitals in The Netherlands. By working closely together in this network, hospitals learn from each other in providing the best possible care for the patient, according to the Value-Based Healthcare (VBHC) principles.
The OLVG was formed in 2015 from a merger of two large hospitals in which both salaried and self-employed staff were prevalent as a working form. As a result, both the hospital and the departments faced an organisational issue in merging both working forms.
The Board of the hospital wanted a uniform organisational form for employment agreements with medical specialists, including the scope and quality of patient care, strategic choices of the hospital and target fee for the doctors.
The medical specialists wanted to retain control over the organisation of patient care. In addition, they advocated rewarding provision for best patient care and efficient work.
Almost all departments use the LOGEX Capacity Model to allocate the budget agreed with the hospital’s board.
Based on delivered patient care and quality ratios, departments can earn a portion of the budget fee. A distribution between 90% and 115% has been agreed upon. Here, the lower limit of 90% is slightly higher than the national collective agreement.
The entrepreneurial employment agreement incentives a good organisational structure on the medical specialist level, room for optimal patient care, and awareness for efficient operations.Kaj Wage, Pediatrician and Chairman, OLVG Honorarium Committee
- Entrepreneurial employment agreement ensures good organisation of departments where “pay according to work” is rewarded.
- Departments retain control and freedom in the organisation of patient care. This has increased the departments’ awareness of business operations in hospital costs and recruiting new staff.
- The model provides transparency and clarity for the medical professionals and offers control to the hospital Board level.