AMGA 2025 Report Shows Physicians' Pay Surges While Productivity Levels Steady

In an encouraging development for medical professionals across the United States, the AMGA 2025 Medical Group Compensation and Productivity Survey has unveiled a notable rise in physician compensation. This year’s survey highlights a pivotal increase of 4.9% in compensation, affecting a wide range of clinical specialties while productivity levels remain largely unchanged.

A Robust Increase in Physician Compensation

According to HIT Consultant, the survey gathered data from over 184,500 providers across almost 500 medical groups. Notably, primary care providers witnessed the most significant bump in their earnings, with a 5.7% increase. This surge has been described by healthcare experts as an indication of an increasingly robust market for healthcare talent.

Despite this growth, there is a more measured increase in productivity, with work relative value units (wRVUs) rising a modest 1.5%. This stability contrasts with the previously erratic fluctuations induced by CMS Physician Fee Schedule modifications and post-pandemic recovery phases.

Notable Specialty-Specific Compensation Growth

The report offers detailed insights into compensation trends across specialties:

• Primary Care: A 5.8% rise in median compensation significantly outstripped productivity growth of 2.1%.
• Medical Specialties: Excluding hospitalists, these specialties grew by 4.9%, compared to a 3.0% change in wRVUs.
• Hospitalists: Notably, the compensation-per-wRVU ratio for hospitalists actually decreased, pointing to changing work expectations within this group.

Fred Horton of AMGA Consulting commented that this might point to specific work expectations for hospitalists, suggesting a strategic alignment with organizational objectives.

The Dynamics Behind the Pay Increase

This upward trajectory in pay comes as medical groups navigate the intricacies of a complex payment system. A challenging 2024 saw a decrease in the CMS Medicare reimbursement rate, though Congressional interventions managed to partially counteract this drop, compelling many groups to renegotiate their non-government contracts.

Strategic Adjustments Within Physician Enterprises

The trends emerging from the AMGA survey also underline the pressing industry-wide shortage of providers. The findings signify a strategic realignment, as organizations balance compensation with the shifts toward value-based care, embracing team-based models and other alternative strategies.

In conclusion, the AMGA 2025 survey highlights an encouraging scenario where compensation growth is providing a cushion against the challenging backdrop faced by healthcare providers. As organizations strategically align themselves towards sustainable care models, this report provides crucial insights into the evolving landscape of healthcare compensation.