COMPENSATION CONTINUES TO GROW, while physician production does not maintain pace.

Compensation planning efforts should consider the impact on market benchmarks of lower-producing physicians. Compensation per WRVU benchmarks for higher-producing physicians are below the overall market median by 7.3%.

VALUE BASED COMPENSATION IS BECOMING MORE PREVALENT

of organizations include a quality component in their physician incentive plans.

The employer portion of benefit costs for physicians increased to $49,934 per physician FTE in 2020, while APP benefit costs increased to $28,544. The cost of benefits varies across specialty categories, with hospital-based physicians having the lowest cost, and surgical physicians having the highest.

79% 61% 21%

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

PRIMARY CARE PHYSICIANS

% CHANGE 2019-2020

WRVU Compensation Compensation/WRVU

5.0%

4.0%

3.0%

2.0%

1.0%

0.0%

SUBSPECIALTY PHYSICIANS

WRVU Compensation Compensation/WRVU

% CHANGE 2019-2020

WRVUs Quality Patient Satisfaction

PERCENTAGE OF ORGANIZATIONS Primary Care Physicians

Medicine Physicians

Surgery Physicians

Hospital-Based Physicians

APPs

7.5%

6.4%

6.1%

7.0%

6.3%

$22,694

$29,197

$30,854

$27,396

$8,946

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HOSPITAL-BASED $57,585 MEDICINE $55,470

PRIMARY CARE $43,897

SURGERY $62,987

61% of organizations report that WRVUs are the predominant metric utilized to determine physician compensation. 79%

APP BENEFIT EXPENSE

2019$48,578

2020$49,934

APP COMPENSATION % CHANGE 2019–2020

2.6%Nurse Practitioner

4.1%PA-Nonsurgical

3.5%PA-Surgical

PHYSICIANBENEFITS ARE INCREASING

Higher- producing physicians’ market rates differ from overall market rates.

Benefit $’s per FTE Physician

Quality and Patient Satisfaction % of

CompensationAverage $

Primary Care

Medicine

Surgery

Hospital-Based

All Physicians

$53.96

$67.82

$64.91

$64.56

$61.80

-6.1%

-6.8%

-5.6%

-11.8%

-7.3%

$50.66

$63.20

$61.28

$56.93

$57.27

MarketMedian

Higher Producing Physicians

% Difference In Compensation per WRVU Median

Note: Higher-producing physicians have WRVU production between the 50th and 75th percentiles.

$28,544 2020 % of Total Compensation = 22.9%

COMPENSATION and PRODUCTION TRENDS

2018$47,968