What You Should Know:
– A new report by AMGA Consulting reveals significant growth in physician compensation and productivity across most specialties in 2023. The findings are based on data from nearly 190,000 providers in 459 medical groups, making it a comprehensive analysis of physician pay trends in the US.
– The AMGA survey underscores the need for addressing factors impacting physician compensation, particularly in primary care. Sustainable solutions might involve adjustments to Medicare payment updates or exploring alternative funding models.
Key findings of the report include:
Overall Compensation Increases: Physician compensation rose by 5.3% in 2023 compared to 2022. This follows a period of slower growth (3.7%) in 2022 and minimal increases in 2021.
Specialty Variations: Compensation growth varied by specialty. Surgical specialties saw the highest increase (5.5%), followed by radiology, anesthesiology, and pathology (5.8%). Medical specialties experienced a 5.1% increase, while primary care lagged behind at 3.6%.
Productivity on the Rise: The survey highlights a strong correlation between compensation increases and productivity gains. Physician productivity, measured in work relative value units (wRVUs), grew across all specialties, with some exceeding compensation growth (e.g., medical specialties).
Primary Care Catching Up: While primary care compensation increases were lower than other specialties in 2023, it’s important to consider the significant jumps observed in 2021 and 2022 due to updated Medicare payment rates. When adjusted for wRVUs, primary care compensation actually decreased slightly in 2023.
Advanced Practice Clinicians (APCs) See Growth: The report also highlights a rise in median compensation and wRVUs for APCs, mirroring physician trends. This suggests a growing role for APCs in clinical care, potentially contributing to physician productivity increases.
Net Collections Lag Behind: A concerning finding is the slower growth in net collections (revenue received after adjustments) compared to compensation increases. This indicates a potential financial strain on medical groups struggling to keep pace with rising costs without compromising provider workload.
“This year’s survey results are noteworthy in numerous areas. We are seeing significant productivity increases, which, in essence, drove the compensation increases across specialties,” said Fred Horton, MHA, president, AMGA Consulting, which administers the survey. “Another key finding is that primary care, which has seen strong increases in compensation over the past few years, had the lowest increases of the major specialty categories, as well as negative compensation per wRVU changes. Given the primary care productivity increases, coupled with minimal compensation increases, their compensation/wRVU ratio actually decreased from past years.”
