MGMA: Compensation for Medical Practice Administrators 'Static'

Median compensation for practice administrators in 2010 showed little change from 2009, according to the Medical Group Management Association's Management Compensation Survey: 2011 Report Based on 2010 Data.

Administrators in practices with six or fewer full-time-equivalent physicians earned median compensation of $86,459, a slight decrease from 2009. Administrators in practices with seven to 25 FTE physicians reported median compensation of $115,000—an increase of only 0.28% from 2009. In groups with 26 or more FTE physicians, administrators reported median compensation of $150,756, the MGMA report said.

Some medical practice management professionals reported slight increases in compensation, likely in recognition of expanded responsibilities. Business service directors, for example, reported a 5.7% increase in median compensation to $88,540. Branch/satellite clinic managers also saw a modest increase in median compensation to $57,510, up 2.57%. Marketing/communications specialists earned median compensation of $49,262, up 0.74 percent since last year, the report said.

"The generally static compensation of practice management professionals reflects the difficult economic environment faced by medical practices," MGMA President/CEO William F. Jessee, MD, said in a media release detailing the report. "Flat or declining revenues in the face of continuing increases in operating costs are forcing many practices to sell or close. For those that are able to survive, compensation levels are generally flat or declining."

MGMA's Management Compensation Survey: 2011 Report Based on 2010 Data includes data on 7,240 managers in 1,287 medical practices.

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