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Study: Physician compensation not keeping up with inflation

Last year, just about everyone took a hit from the U.S. economic crisis. Apparently, that includes physicians, whose overall compensation didn't keep up with inflation in 2008, according to new research by the Medical Group Management Association. This was true for both primary-care physicians and specialists, the group found.

According to the MGMA's survey data, primary-care compensation saw a 2 percent increase--or negative-1.73 percent adjusted for inflation, to a median of $186,044. Specialist compensation, meanwhile, rose 2.19 percent, or negative-1.59 percent adjusted for inflation, to a median of $339,738. Meanwhile, U.S. inflation in 2008 hit 3.8 percent.

Among primary-care specialties, internal medicine did the worst on this measure, with an increase of less than 1 percent last year, or negative-3.37 percent when inflation is taken into account. Among specialists, meanwhile, emergency medicine physicians, dermatologists and general surgeons fared the worst, with declines of as much as 3.2 percent after inflation.

These results conflict with a recent report by Sullivan, Cotter and Associates that said physicians saw a 2008 compensation increase of around 4 percent. So judge for yourself what's going on here, bearing in mind that MGMA represents physicians. (Who has an incentive to suggest that doctors are underpaid?)

To learn more about this data:
- read this MGMA press release

Related Articles:
Physician salaries grew in '08 despite recession
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MGMA: Physician salaries up from '08

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Comments

Actually, the MGMA represents physician groups. The Sullivan, Cotter, and Associates article states that it surveyed "Health Care Organizations." Would those include hospitals? Although being hospital-owned does not preclude membership in MGMA, the majority of members are from private groups. This could be a reason why the two reports come to seemingly different results. It's not really helpful to suggest that a group might "have an incentive" to skew its results.

MGMA's data on physician compensation and productivity has always been considered the gold standard for the field. In my past life as a group practice administrator, we did an in-depth comparative analysis of data sources for this. MGMA's approach to data gathering and analysis was objective and methodologically rigorous. They don't deserve the gratuitous implication that they are skewing data. As a healthcare consultant who works primarily with hospitals, they're the definitive source on physician compensation as far as I'm concerned.

The vast majority of Emergency Physicians unlike the other specialties are paid on an hourly rate and do note include nontaxed benifits. AT LEAST IN FLORIDA, the hourly rate pay for ER physicians has increased between 80-120% in the last 10-12 years far outstriping inflation. More than any other specialty they have the ability to increase wages by just increasing hours worked. To really get and idea of an ER physicians saleries hours worked must be factored.

Physician salaries have been decreasing for the last 20 years, this is nothing new. The general public is grossly misinformed on physician salary, costs, and work hours. I have a nurse that makes 1/2 my salary, not bad for a 2 year degree. People can't complain about physician shortages if we aren't willing to pay for the value of their education, debt, and time.

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