Despite the economic downturn in 2008, physicians have seen an average salary increase of 4.4 percent for specialists and 4 percent for primary care, according to Sullivan, Cotter and Associates, Inc. ' s 16th 2008 Physician Compensation and Productivity Survey Report.
Nearly three-quarters (72 percent) of the survey participants provided salary increases to their employed physicians last year, which is comparable to 2007, when 73 percent reported providing a salary increase.
The results also point to increased use of incentive plans, compensation tied to quality measures and a decrease in the rates paid per work Relative Value Units (wRVUs). A total of 257 healthcare organizations nationwide participated in the survey, which includes compensation data for more than 41,000 physicians in more than 150 specialties.
"While the majority of organizations provided salary increases to physicians, some organizations also decreased compensation for at least some of their physicians," said Kim Mobley, a principal at Sullivan, Cotter and the survey director. "In fact, 10 percent of survey participants decreased cash compensation levels in 2008."
When organizations decrease physician compensation, most often it is linked to individual productivity and/or labor market benchmark norms, she said.
According to the survey, 70 percent of organizations use incentive compensation for their physicians, up from 60 percent in 2005. Productivity is still the most common variable used to determine incentives.
"There is an increase in the use of quality measures as part of an incentive payment; however, the relative amount of compensation tied to quality is small, typically not more than 2-3 percent of total cash compensation," said Mobley.
According to the report, 57 percent of the participants used hiring bonuses last year, compared to only 49 percent in 2007. The amounts paid have remained relatively stable, averaging $10,000 for primary care physicians and $17,500 for specialists.