3 Reasons It’s Time for Your Physician Compensation Review!
MGMA released the 2024 Provider Compensation and Productivity Report in May, and it reflects the trends we’ve seen with our physician clients at SCC: physician compensation continues to increase, wRVU productivity is up across all specialties, and most physician compensation isn’t keeping up with inflation.
Demand for physicians remains high while the physician shortage continues to grow, a classic case of supply and demand.
If you haven’t reviewed your compensation and wRVU benchmarks in the last 24 months — now is the time — and here’s why…
1. Median Physician Compensation is Rising
In 2023, Median Total Physician Compensation increased nationally for the fourth consecutive year for Surgical Specialists, Non-Surgical Specialists, and Primary Care physicians. Compensation increased by geographical region, with the Midwest paying the highest median total compensation for surgical specialists. The five-year Median Guaranteed Compensation for Early-Career Physicians, Post Residency and Fellowship increased between 6% and 16.92% depending on specialty. (Source 2020-2024 MGMA DataDive Provider Compensation, Based on 2019-2023 Data)
2. Productivity Gains Should Reflect Pay
Median wRVU Productivity increased from 2022 to 2023 for most Physician Specialties, continuing a post-COVID productivity rebound. These increases in wRVU productivity are fueling the rise in Physician Compensation. How does your productivity measure up? Benchmarking your wRVUs against MGMA Data for your specialty can be a game-changer in verifying that your compensation is fair and, if not, to substantiate and negotiate equitable pay.
3. Physician Compensation is Not Keeping Pace with Inflation
While it’s excellent news that Median Physician Total Compensation and wRVU Productivity have increased from 2019-2023, compared to the Consumer Price Index (CPI), Physician Compensation increases lag the Inflation Rate of 20.60% during the same five-year period. Is your compensation keeping up with inflation? If you’re unsure, you know it’s time for a compensation analysis!
Schedule Your Physician Compensation Review
SCC can help you determine where you are, identify where you’d like to be, and develop strategies to help you get what you want!
Contact us at SCC to review the latest national physician compensation data for your specialty — including both salary and benefits — and understand the benchmarks to negotiate your value.
Whether you’re entering or renewing a physician contract, comparing offers, renegotiating your compensation, or somewhere in between, we’re here to help you navigate the business of medicine and negotiate with confidence.
