Provider Compensation Increased in 2019 as Docs Saw More Patients

Provider compensation trended upward in 2019 as most providers reported increases in overall productivity, according to MGMA’s latest Provider Compensation and Production Report.

Average total primary care physician compensation rose by 2.6 percent in 2019, reaching an industry average of $273,437. Meanwhile, overall compensation for most physician specialties continued to increase, revealed data from more than 168,000 physicians and non-physician providers (NPPs) in over 6,300 organizations.

Urgent care and pulmonary specialists reported the greatest salary increases, from $259,661 to $277,393 and $385,024 to $406,245, respectively. Although general psychiatrists saw the most sizable increase in total provider compensation from 2018 to 2019 with 7.69 percent.

Providers in internal medicine and urology also reported some of the greatest compensation increases from 2018 and 2019, with 4.00 percent and 3.85 percent increases, respectively.

NPP compensation also rose significantly during the period, the report highlighted. From 2018 to 2019, nurse practitioners and physician assistants experienced a 2.13 percent increase in compensation, with those practicing in surgical settings earning the highest salaries in 2019. Surgical physician assistants reported an average salary of $129,183, while nurse practitioners earned an average of $116,964.

NPPs in primary care earned the least compared to their peers, with primary care nurse practitioners and physician assistants reporting average salaries of $109,925 and $112,924, respectively. Meanwhile, non-surgical and non-primary care nurse practitioners and physician assistants earned $108,861 and $116,656, respectively.

The compensation rates for NPPs in 2019 were notable, the report emphasized. Over the past five years, total compensation for the providers have increased at a rate of five to nine percent, MGMA found.

However, these numbers may look different in next year’s report.

Many physicians are compensated completely or at least in part based on work relative value units (wRVU) productivity, and a significant portion of physicians in this year’s report experienced an increase in productivity, with some specialties seeing a 10 percent boost in 2019.

Greater productivity through more appointment times and more procedures and surgeries meant physician compensation increased. However, the recent outbreak of COVID-19 has led to significant declines in volumes across the board, which could impact physician pay in 2020, MGMA explained.

“COVID-19 has had a dramatic impact on the healthcare industry with productivity halting for many medical practices. Compensation models will look different in the near future based on shifting productivity and demands on physicians and the healthcare industry overall,” stated Halee Fischer-Wright, MD, MMM, FAAP, FACMPE, president and CEO of MGMA.

Even providers on salary-based contacts could suffer, as their compensation is dependent on the financial viability of their organization, the association pointed out.

A separate study from MGMA found that an overwhelming majority (97 percent) of physician practices have experienced a negative financial impact directly or indirectly related to COVID-19. On average, physician practice revenue has declined by 55 percent since the start of the crisis, while volumes have fallen by 60 percent, the study showed.

About one in five physicians have also been furloughed or had compensation reduced as a result of the COVID-19 outbreak, a recent Merritt Hawkins and Physicians Foundation survey found.

But the financial outlook may be improving for providers. According to a new MGMA Stat poll, 89 percent of practice leaders said their practices have reopened for in-person visits, and more than half (54 percent) reported that all providers are seeing patients in person.

“With 1.4 million healthcare workers furloughed in the last month alone, this 2019 compensation data will serve as a baseline for benchmarking 2020 operations in the aftermath of the COVID-19 pandemic,” Fischer-Wright stated.