New research from Medical Group Management Association (MGMA) reveals that compensation for most physicians has remained steady despite the wide-ranging financial impacts of the COVID-19 pandemic on physician practices in 2020 which included lower patient volumes, caps on elective procedures and a growing number of practice closures.
The “2021 MGMA Provider Compensation and Production” report, which reflects data from more than 185,000 providers across more than 6,700 physician-owned and hospital-owned organizations, shows that compensation for primary care physicians saw modest growth in 2020, and many physician specialties have seen slight increases or met previous year compensation during the most significant economic challenges experienced by the healthcare industry in nearly a century.
According to the report, primary care physicians saw a total median compensation raise of 2.6% compared to 2019, and pediatricians saw a 6% median increase, the largest of all doctors surveyed. Family medicine specialists saw a 4% median increase, and advanced practice physicians saw a 1.25% increase, although many specialists experienced their pay decrease. Even though patient encounters rose, non-surgical specialists saw their median total pay drop 1.3%, while surgical specialties saw a 0.89% drop.
"Our numbers tell a story of a year of unprecedented challenges that could have potentially led to a serious decline in compensation across every category we track. Practices acted quickly to leverage government programs to cover staff costs and expenses during the early part of 2020. They adapted to new delivery models such as telemedicine and were able to quickly ramp up when patient volumes returned later in the year. It is a testament to the resiliency of physician groups that weathering the challenges of a year that tested us all in so many ways," MGMA CEO Halee Fischer-Wright said in a statement.
To see the full report and review more details, Click Here.