Average Physician Assistant Compensation Grew to $111K in 2019

Physician assistant compensation grew right before the COVID-19 pandemic brought an onslaught of workforce reductions, the latest salary report from the American Academy of PAs (AAPA) showed.

Released earlier this month, the 2020 AAPA Salary Report found that physician assistants (PAs) earned an average of $111,000 a year in 2019, marking a 3.3 percent increase compared to the average annual compensation rate the previous year.

The average was based on the median annual base salary of $110,00 among full-time salaried PAs and a median hourly wage of $62.73 among PAs who reported earning compensation based on hours worked.

The select few (4.0 percent) who were compensated based on productivity reported a median salary of $145,000 in 2019, revealed the report based on responses from over 13,000 PAs who worked at least 32 hours per week in 2019.  

Additionally, about half of full-time PAs (50.1 percent) received a bonus; half of these respondents earned a bonus of $5,500 or more.

The overall increase in compensation, however, may be short-lived for many PAs.

“In the midst of COVID-19, many PAs are facing challenges such as furloughs and significant changes within their workplaces,” Beth R. Smolko, DMSc, MMS, PA-C, president and chair of the board at AAPA, stated in a press release.

About one in five physician assistants were furloughed at the start of the pandemic, a separate survey from the AAPA found in May 2020.

In addition, over half (58.7 percent) of physician assistants reported reduced work hours, while 30.6 percent said they had their base pay reduced. Nearly 4.0 percent of physician assistants also reported being terminated from their positions.

While COVID-19 increased the demand for qualified healthcare professionals at the peak of the pandemic, shutting off elective and non-urgent care to minimize the risk of exposure to the novel coronavirus took a toll on the PA workforce.

However, compensation rates from before the pandemic will have an impact on the future of the PA workforce after the dust settles, according to the head of AAPA.

“The increase in PA base salary and compensation in 2019 underscores how valuable PAs are in today’s healthcare workforce – which has become even more evident during this time of increased need for access to healthcare providers,” said Smolko.

Visits volumes are starting to recover from historic drops at the start of the pandemic, yet many providers are still unsure if their organization, especially if it is on the smaller side, can withstand the dramatic revenue losses sustained earlier this year.

Couple with the existing and growing physician shortage, patient access to care is likely to suffer as the nation enters the next phase of the pandemic, The Physicians Foundation recently said.

PAs can help meet the demand as they did at the peak of the pandemic, according to PA advocates.

“We see how quickly the PA workforce is adapting to this crisis when given the chance to contribute,” said David E. Mittman, AAPA’s former president and chair of the board.

Currently, all but three states (Alaska, Arkansas, and Kentucky) have taken some action to suspend or waive PA requirements, the AAPA reports.

For now, 21 states have fully or partially waived PA supervision or collaboration requirements through COVID-19 executive orders or previous emergency-related legislation or regulation, paving the way for PAs to contribute more to the practice of medicine during the pandemic.

The remaining states have suspended or waived select practice requirements, such as licensure, ratios, and telemedicine use.

Relaxing scope of practice restrictions beyond the pandemic can allow PAs to meet new patient needs created by the COVID-19, such as telehealth services.

The 2020 AAPA Salary Report showed that just one in ten PAs used telehealth or telemedicine in their clinical practice prior to the pandemic.

The use of telehealth skyrocketed right after the survey was completed as practices transitioned to virtual care to stop the spread of the virus, and demand for virtual care remains high as patient concerns about returning to doctor’s offices persistent into the fall.

Other key findings from the report include:

• PAs working part-time (less than 32 hours per week) reported working a median of 24 hours weekly and earned median base salaries of $85,000 and median hourly wages of $60
• PAs who worked in emergency medicine earned more than PAs in other major specialty areas with median base compensation of $124,100 across the profession
• PAs who worked in hospital settings earned more than those in physician practices ($115,000 versus $104,000)
• Almost one in six PAs worked in non-metropolitan or completely rural areas