Physician Compensation Up for 3 in 4 Specialties

In 2009, 76% of all specialties saw an increase in compensation, with the overall weighted average increase of approximately 3.4%. The primary care specialties' (excluding hospitalists) average compensation increase was about 3.8%, according to the American Medical Group Association's (AMGA) 2010 Medical Group Compensation and Financial Survey.

Other medical specialties had on average a 2.4% increase, and surgical specialties had a 3.8% average increase.

Between 2008 and 2009, the specialties reporting the largest increases in compensation were pulmonary disease (10.37%), dermatology (7%), urology (6.36%), family medicine (5.67%), hypertension and nephrology (5.54%), and cardiac and thoracic surgery (5.12%).

"The modest increases seen this year reflect the negative impact of declining reimbursements, competition for specialists, the cost of new technology, and other factors on practice revenues in most parts of the country," says AMGA President and CEO Donald Fisher, PhD.

For work relative value units (RVUs), the overall weighted average increase from 2009 to 2010 was approximately 0.8%. For the specialties reviewed by AMGA, the average increase in work RVUs was 1.2% from 2009. Primary care remained flat, other medical specialties increased by 2.7%, and surgical specialties increased by 3.0%, on average. The largest work RVU increases occurred in cardiac and thoracic surgery and otolaryngology.

For gross charges, 65% of the specialties experienced an increase from 2009 to 2010. The overall weighted average increase from 2009 was approximately 2.5%. Gross charges for primary care specialties increased by 4.1% on average, while other medical specialties increased by 1.3% and surgical specialties by 5.6%, on average.

The survey noted that many medical groups were still encountering significant financial challenges. While most regions looked healthier than in 2008, margins were still thin. In 2009, for instance, organizations in the Eastern and Western regions were operating at a break-even point.

Many of the losses seen in 2009 were supplemented by other non?clinical revenue sources and funding from health systems with which groups are associated, Fisher said. Most of the medical groups represented in the survey were part of larger organized systems of care that have made investments in technology, operations, and other care processes, he added.

The 2010 AMGA Medical Group Compensation and Financial Survey was sent to more than 2,700 medical groups. Survey responses were received from 248 groups, representing more than 49,700 physicians and 121 specialties.