According to a recent report by the Medical Group Management Association (MGMA), primary care physician compensation exceeded $300,000 in 2023, reaching a median of $312,427. This represents a 4.4% increase from the previous year. The same report also showed that surgical specialist compensation rose by a similar percentage to $554,108, while nonsurgical specialist compensation only saw a 1.81% increase to $432,983. The rise in compensation is attributed to increased productivity of physicians following the challenges faced during the COVID-19 pandemic, though providers are still dealing with economic and staffing challenges.
The 2024 MGMA DataDive Provider Compensation report highlighted that primary care and nonsurgical specialty physicians have seen compensation increases for the fourth consecutive year. Primary care physicians experienced the largest gains at 4.44%, followed closely by surgical specialists at 4.42%. MGMA noted that this compensation growth kept up with the 3.4% rise in the Consumer Price Index for the year, though the five-year changes in physician compensation still lag behind the nearly 21% CPI surge during the same period. The report also highlighted that primary care, surgical specialty, and nonsurgical specialty physicians in independent practices reported higher median work RVUs in 2023 compared to the previous year.
Despite the increase in compensation and productivity, the healthcare industry is facing staffing issues. Previous MGMA reports have shown a decrease in support staff per full-time equivalent physician, from 5.08 in 2019 to 3.0 in 2022, as a result of the COVID-19 pandemic and the “Great Resignation.” Dr. Halee Fischer-Wright, president and CEO of MGMA, acknowledged the challenges faced by medical groups, including escalating overhead costs, declining physician reimbursement, and a challenging labor market. She emphasized the importance of embracing digital technologies to optimize operations, maintain access to care, and achieve cost savings amid ongoing staffing shortages.
The increase in physician compensation comes as the healthcare industry continues to recover from the impacts of the COVID-19 pandemic, which led to office shutdowns and disruptions in patient care. As patients return for regular care and treatments, providers are working to meet the increased demand while also addressing staffing challenges. The MGMA report provides insights into the compensation trends among primary care and specialist physicians, highlighting the resilience and productivity of medical groups in the face of economic and staffing challenges.
The trends in physician compensation reflect the broader challenges facing the healthcare industry, including the need to address staffing shortages and optimize operations. The ongoing impact of the COVID-19 pandemic has accelerated the adoption of digital technologies in healthcare, providing opportunities for medical groups to improve efficiency and access to care. As physicians and other healthcare providers continue to navigate the evolving landscape of healthcare delivery, embracing innovation and digital transformation will be key to ensuring the sustainability and quality of patient care.
