|[November 27, 2012]
Physician Pay Increases Will Rise Slightly in 2013, According to Hay Group's Annual Physician Compensation Study
PHILADELPHIA --(Business Wire)--
Physicians across all organization types can expect slightly higher
salary increases in 2013 with salary increase budgets rising to 2.6
percent, according to results from Hay
Group's 2012 Physician Compensation Survey released today. This is
compared to actual increases of 2.5 percent in 2012. Specifically,
physicians working in group-based practices can expect to see the
largest pay increases of 3.0 percent in 2013, while those working in
hospital-based settings can expect the smallest pay increases of 2.0
Similarly, when looking at primary care physicians, those employed by
hospitals can expect a 2.0 percent salary increase in 2013, while
group-based primary care physicians can expect a 3.0 percent salary
increase. This is compared to an actual increase of 5.0 percent in 2012
for group-based primary care physicians and a 2.0 percent salary
increase for hospital-based primary care physicians.
"As the Affordable Care Act is fully implemented, primary care
physicians will become more critical than ever to the viability of the
healthcare system," said Jim Otto, senior principal in Hay
Group's Healthcare Practice. "Given the growing shortage of primary
care physicians and the expected increase in demand from patients
seeking care, we expect to see salary increases for primary care
physicians trend upward over the coming years as employers vie for the
For physician specialists, on the other hand, the expected salary
increases in 2013 remained unchanged from the actual increases in 2012.
Hospital-based specialists can expect a 2.0 percent salary increase in
2013, while group-based physician specialists can expect a 3.0 percent
According to Hay
Group's study, the prevalence of annual inentive plans remained the
same at 64 percent among all physicians in 2012. Among physicians
working in group-based practices specifically, the prevalence of annual
incentive plans decreased to 80 percent from 89 percent in 2011. Among
hospital-based physicians, the prevalence of annual incentive plans
increased to 63 percent from 59 percent in 2011.
"As healthcare organizations transition from a volume-based delivery
system to a system based on value and quality of care, many are
implementing annual incentive plans to drive behaviors required to
succeed in this new environment," said Otto. "By incorporating metrics
such as quality of care and patient satisfaction into annual incentive
plans, healthcare organizations are forcing physicians to think
differently about their approach to care."
Other findings from Hay
Group's 2012 Physician Compensation Study
Employment contracts grow in popularity: The use of employment
contracts continued to increase in 2012 for both hospital-based and
physician group-practices. In hospitals, 70 percent of physicians had
employment contracts, compared to 64 percent in 2011. For physicians
working in group-based practices, 67 percent had employment contracts in
2012, while only 56 percent had contracts in 2011.
Quality measures determine incentive payouts. Measures for
determining incentive payouts continue to be dominated by quality and
patient satisfaction. For individual performance metrics, 77 percent of
organizations reported that they used "quality" and 66 percent relied on
"patient satisfaction" to measure physician performance. Conversely,
only 39 percent reported "outcomes" as a performance metric for
physicians. For group performance measurement, 56 percent reported
"quality" as a metric, while 50 percent reported "patient satisfaction"
as a measurement used to determine incentive payouts.
Majority of physicians receive malpractice insurance as an added
benefit. Most organizations (88 percent) provided some form of
malpractice insurance to their physicians. Of those organizations, 97
percent provided the insurance at no cost to the physician.
Study depth and methodology
Hay Group's Physician Compensation Survey has been conducted as an
independent survey by Hay Group for over a decade. The survey and
subsequent reports cover 132 physician specialties, including 39
pediatric specialties. In addition, the physician compensation report
covers 35 non-physician provider positions. Data is reported as of March
Hay Group has a unique collection and analysis process for physician
data, which provides a deeper breakdown of compensation. This is
different from most other physician compensation surveys in the
marketplace as Hay Group's competitors' collection methods combine
aspects of compensation together into a single figure. Hay Group is
committed to providing robust and specific information so our clients
can make better, more informed compensation decisions.
Additional information about Hay Group's reward information services can
be found at http://bit.ly/TmzZrb.
Media inquiries and interview requests can be directed to Andrea
Friedman at email@example.com or
Group is a global consulting firm that works with leaders to
transform strategy into reality. We develop talent, organize people to
be more effective, and motivate them to perform at their best. With 85
offices in 48 countries, we work with over 7,000 clients across the
world. Our clients are from the private, public, and not-for-profit
sectors, across every major industry and represent diverse business
challenges. Our focus is on making change happen and helping people and
organizations realize their potential.
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