Physicians’ compensation is increasing as productivity rises

Physician Compensation on the Rise in 2023, Report Shows

A recent report from the Medical Group Management Association (MGMA) revealed that physician compensation saw an increase in 2023, driven by higher productivity and the use of artificial intelligence (AI) in healthcare practices.

According to the report, physicians across primary care, surgical specialties, and nonsurgical specialties in independent practices reported higher median work relative value units (work RVUs) in 2023 compared to the previous year. In hospital-owned practices, median work RVUs also saw an increase for primary care and surgical specialty physicians, as well as advanced practice providers.

The report highlighted that provider compensation has been on the rise for the fourth consecutive year, with primary care physicians and surgical specialists seeing the largest gains in total median compensation. Advanced practice providers also experienced a significant increase in total median compensation in 2023.

Despite the increase in compensation, the report noted that physician pay rates set by the government are considered unsustainable by the American Medical Association. Practices are facing challenges in increasing payments, and many are turning to technological innovations, such as AI, to improve productivity and financial performance.

Dr. Halee Fischer-Wright, president and CEO of MGMA, emphasized the importance of embracing digital technologies to optimize operations and maintain access to care amid staffing shortages and rising patient demand.

The report, based on data from over 211,000 physicians and advanced practice providers, reflects a larger trend in the healthcare industry towards leveraging technology to improve efficiency and financial performance.