Increases in physicians’ overall compensation in both primary and specialty care did not keep up with inflation in 2008, according to the Medical Group Management Association’s “Physician Compensation and Production Survey: 2009 Report Based on 2008 Data.”
“Physician practices endure tough economic challenges to stay solvent, especially these days,” said William F. Jessee, MD, MGMA president and CEO. “For physicians to have a chance to hold their incomes steady, it’s vital that they pay close attention to their bottom line and benchmark their practices and compensation levels against their peers. With physician payment rates lagging behind inflation, physician practices need as many tools as possible to maintain their incomes.”
The report shows that physicians in primary care compounded a history of generally flat compensation this year with a reported 2 percent increase (-1.73 percent adjusted for inflation) to a median of $186,044. Specialists’ compensation rose 2.19 percent (-1.59 percent when adjusted for inflation) to a median of $339,738. Inflation in 2008 amounted to a 3.8 percent increase in the U.S. Consumer Price Index.
Physicians in internal medicine fared the worst among their primary care counterparts, posting an increase of less than 1 percent in compensation in 2008.
Among specialists, emergency medicine physicians, dermatologists and general surgeons all reported flat salaries before inflation was factored in, with declines of up to -3.2 percent after inflation. Gastroenterology, up 7.38 percent, and pulmonary medicine, up 6.65 percent, were among the few specialties that posted moderate gains in compensation in 2008.
MGMA observed that median collections for professional charges were generally flat in primary care and declined moderately (-6.53 percent) for specialties. This may signal the leading edge of the economic downturn in 2008, and the trend of patients electing to postpone care.