Newswise — According to findings in the American Medical Group Association’s 2009 Medical Group Compensation and Financial Survey, most specialties saw very modest increases in compensation in 2008, but many provider organizations continue to operate at a significant loss.
The survey found that 81% of the specialties experienced increases in compensation in 2008, with the overall average increase around 3.5% (less than 2007, when 91% experienced an average increase around 3.5%). The primary care specialties (excluding hospitalists) saw about a 3.8% increase in 2008, while other medical and surgical specialties averaged around 6%. (The primary care specialties saw about a 3.2% increase in 2007, while other medical and surgical specialties averaged 3.7%). The survey reports that during 2008, the specialties experiencing the largest increases in compensation were otolaryngology (8.63%), pathology (11.02%), and urgent care (7.33%).
“The survey indicates that compensation continues to fluctuate only marginally for most specialties,” said Donald W. Fisher, Ph.D., president and chief executive officer of the American Medical Group Association (AMGA). “The modest increases seen this year reflect the negative impact of declining reimbursements, competition for specialists, the cost of new technology, and other factors on practice revenues in most parts of the country.”
The section of the survey that examines financial operations found that medical groups in most regions continued to operate at a loss. In 2008, only organizations in the Eastern region were operating at break even. Organizations in the Southern region, which experienced significant losses in 2007 (median -$1,919 per physician), saw improvements, though they continued to operate as a loss (-$120 per physician). Groups in the Northern region also continued to experience losses (-$3,254 per physician), despite improving performance (-$5,322 per physician in 2007). For the first time in five years, groups in the Western region reported they were operating at a loss (-$1,458 per physician), after being profitable in 2007 ($4,453 per physician).
“In the face of the current economic climate, these medical groups continue to rise to the challenge of delivering the highest quality, coordinated care to the patients they serve,” commented Fisher. “Most of the groups represented in the survey are large organized systems of care that make substantial investments in technology, operations, and the most innovative care processes to best serve populations under their care, and are able to achieve remarkable results for their patients. Our current transaction-based reimbursement system is largely indifferent to these results and to the efforts of medical groups to elevate the standard of care in the U.S. Currently AMGA is working to address the inequities of the current payment model as part of overall healthcare reform and to develop a model that incorporates a substantial component reflecting achievement of quality results.”
The AMGA 2008 Medical Group Compensation and Financial Survey gives a complete financial picture of medical group operations in one volume, providing compensation, productivity, and financial operations data from approximately 44,200 healthcare providers throughout the United States, including 120 specialties, 29 other healthcare provider positions, and 21 administrative positions. The survey data includes starting salaries by specialty; medians, means, and percentiles; compensation/productivity ratios; and comparative data from previous surveys, as well as providing analysis by group size and geographic region. In the financial section, profiles are provided per physician FTE, square footage, and work RVU. In addition to staffing profiles, the financial data includes medians, capitation impact, accounts receivable analysis, and department level analysis. A section examines data specific to the academic/faculty practice environment. The 22nd annual AMGA compensation and financial survey was conducted by the national accounting firm of RSM McGladrey, Inc.
RSM McGladrey is a leading professional services firm providing accounting, tax and business consulting. RSM McGladrey operates in an alternative practice structure with McGladrey & Pullen LLP, a partner-owned CPA firm that delivers audit and attest services. Through separate and independent legal entities, they work together to serve clients’ business needs. Together, the companies rank as the fifth largest U.S. provider of accounting, tax and business consulting services (source: Accounting Today), with 8,000 professionals and associates in nearly 100 offices. RSM McGladrey Inc. and McGladrey & Pullen LLP are member firms of RSM International, an affiliation of independent accounting and consulting firms. RSM McGladrey is the official accounting, tax and business consulting firm of The PGA of America. From accounting and tax to reimbursement and physician compensation services, our health care specialists deliver effective and affordable solutions to nearly 3,000 health care institutions across the nation.
The American Medical Group Association is an association that represents medical groups, including some of the nation's largest, most prestigious medical practices, independent practice associations, and integrated healthcare delivery systems. AMGA improves health care for patients by supporting multispecialty medical groups and other organized systems of care. The members of AMGA deliver health care to approximately 96 million patients in 49 states. Headquartered in Alexandria, Virginia, AMGA is the strategic partner for medical groups providing a comprehensive package of benefits, including political advocacy, educational and networking programs and publications, benchmarking data services, and financial and operations assistance. www.amga.org
A limited number of copies of this year’s survey are available for working press. For press copies, contact Tom Flatt at [email protected]. Surveys are also available for purchase for $295 to AMGA members and $590 to nonmembers. To order, visit www.amga.org or contact Stefan Rozga at (703) 838-0033, ext. 326. Survey data is also available in a subscription-based, interactive, online database. For details, contact Stefan Rozga or visit www.amga.org.
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