CONTACT:
Tom Flatt
(703) 838-0033 ext. 328
[email protected]
16 August 2011
2011 Medical Group Compensation and Financial Survey Finds Continued Financial Losses in Most Regions, Average Increase in Physician Compensation at 2.4%
ALEXANDRIA, VA-According to findings in the American Medical Group Association's 2011 Medical Group Compensation and Financial Survey, many provider organizations continue to operate at a significant loss, and although nearly 70% of specialties saw increases in compensation in 2010, increases were marginal.
The section of the survey that examines financial operations found that medical groups were still faced with significant financial challenges, and operating margins are increasingly thin. In 2010, only organizations in the Western region were nearing break-even (-$27 per physician). All other regions were operating at a loss: the Eastern region averaged a loss of $1,597 per physician; the Southern region averaged a loss of $1,870; and the Northern region continued to experience significant losses (-$10,669 per physician in 2010, compared to -9,943 per physician in 2009).
"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 Donald W. Fisher, Ph.D., CAE, president and chief executive officer of AMGA. "Much of the losses we see in 2010 are supplemented by other non-clinical revenue sources and/or funding from health systems with which groups are associated. Our current volume-based reimbursement system is largely indifferent 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 and value for patients and payers."
The compensation portion of the survey found that 69% of the specialties experienced increases in compensation in 2010, with the overall average increase around 2.4% (in 2009, 76% experienced an average increase around 3.8%). The primary care specialties saw about a 2.6% increase in 2010, while other medical specialties averaged an increase of 2.4% and surgical specialties averaged around 3.8%. (The primary care and surgical specialties saw about a 3.8% increase in 2009, while other medical specialties saw 2.4%.) The survey reports that during 2010, the specialties experiencing the largest increases in compensation were allergy (6.38%), emergency medicine (6.37%), and hospitalist - internal medicine (6.29%).
"The survey indicates that compensation continues to fluctuate only marginally for most specialties," said Fisher. "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 AMGA 2011 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 49,700 healthcare providers throughout the United States, including 124 specialties, 32 other healthcare provider positions, and 28 administrative positions. The data represents responses from 239 medical groups, representing 51,700 providers (55.6% of groups report more than 100 physicians). 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 24th annual AMGA compensation and financial survey was conducted by the national accounting firm of McGladrey.
McGladrey is the brand under which RSM McGladrey, Inc. and McGladrey & Pullen, LLP service clients' business needs. Together, they rank as the fifth largest U.S. provider of assurance, tax and consulting services with 7,000 professionals and associates in nearly 90 offices. The two firms operate as separate legal entities in an alternative practice structure. McGladrey & Pullen is a licensed CPA firm that provides assurance services. RSM McGladrey is a leading professional services firm providing tax and consulting services. Both firms are members of RSM International, the sixth largest global network of independent accounting, tax and consulting firms. For more information, visit the McGladrey website at www.mcgladrey.com.
The American Medical Group Association represents medical groups, including some of the nation's largest, most prestigious medical practices, independent practice associations, and integrated healthcare delivery systems. AMGA's mission is to improve health care for patients by supporting multispecialty medical groups and other organized systems of care. More than 117,000 physicians practice in AMGA member organizations, providing healthcare services for 110 million patients in 49 states (nearly one in three Americans). Headquartered in Alexandria, Virginia, AMGA is the strategic partner for these organizations, providing a comprehensive package of benefits, including political advocacy, educational and networking programs, 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 $325 to AMGA members and $650 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.