Average Physician Compensation Increase Was 3.8% in 2009: AMGA Survey

Most specialties saw modest increases in compensation in 2009, but many provider organizations continue to operate at a significant loss, according to findings in the American Medical Group Association’s (AMGA’s) 2010 Medical Group Compensation and Financial Survey. The survey found that 76% of the specialties experienced increases in compensation in 2009, with the overall average increase around 3.8% (in 2008, when 81% experienced an average increase around 3.5%). The primary care specialties (excluding hospitalists) saw about a 3.8% increase in 2009 (same in 2008), while other medical specialties averaged an increase of 2.4% and surgical specialties averaged around 3.8%. The primary care specialties saw about a 3.8% increase in 2008, while other medical and surgical specialties averaged 6%. The survey reports that during 2009, the specialties experiencing the largest increases in compensation were pulmonary disease (10.37%), dermatology (7%), and urology (6.36%).

The section of the survey that examines financial operations found that medical groups were still faced with significant financial challenges. Most regions were doing better than in 2008, but margins are thin. In 2009, organizations in the Eastern and Western regions were operating at break even. Organizations in the Southern region continue to operate at a loss (-$1,034 per physician in 2009, -$120 per physician in 2008). Groups in the Northern region continued to experience significant losses (-$9,943 per physician in 2009, -$3,254 per physician in 2008).