CHICAGO--(BUSINESS WIRE)--Sullivan, Cotter and Associates, Inc., a human resources and total compensation consulting firm, released the results of its 2014 Physician Compensation and Productivity Survey. Widely acknowledged as the industry standard for physician data, the 22nd annual edition of the survey report represents the most comprehensive physician database among major surveys of its kind. The survey report contains data from 517 organizations covering over 98,000 health care providers and 240 specialties and positions.
The 2014 survey findings indicated a continued increase in the employment of physicians and expansion in the use of Advanced Practice Clinicians (APCs). In 2014, 68% of participants indicated that they increased their employed physician and APC population, while 66% of participants plan on increasing the number of employed physicians and APCs within the next year. According to Tim Reed, Managing Principal and Practice Leader for Physician Valuation, these findings support current market trends. “The survey results are consistent with the continued trend of physician practice acquisitions and industry consolidation as health care organizations develop strategies to manage costs and improve access and the patient experience. This can have a significant impact on compensation strategies.”
Participants reported a median total cash compensation (TCC) increase of 4.9% for primary care and 1.9% for medical specialties, down slightly from the 5.7% increase for primary care and 3.2% increase for medical specialties reported in 2013. Surgical specialties experienced a slight increase of 2.5% in 2014 compared to 2.3% in 2013.
As the health care market shifts from volume to value, physician incentive compensation for quality is becoming more prevalent, with 39% of participants reporting the use of quality metrics, an increase from the 32% reported in 2013. The overall actual quality incentives approximate 5% of physician TCC, which is consistent with 2013 findings.
“Linking quality to compensation is expected to increase over the next few years,” said Kim Mobley, Managing Principal and National Physician Compensation Practice Leader. “Organizations must understand the effect quality incentives have on the compensation and behavior of the physician as well as the organization’s finances. The physician compensation plan and philosophy should align with organizational objectives to ensure the physicians are prepared for change. Choosing measurable quality metrics is key to physician buy-in,” Mobley added.
For more information on SullivanCotter’s surveys, please visit our website at www.sullivancotter.com or contact us by phone at 888.739.7039.
About SullivanCotter
SullivanCotter is the leading independent consulting firm in the assessment and development of tailored total compensation and reward programs for tax-exempt, not-for-profit organizations. For more than 20 years, the firm has provided executive, physician and employee compensation and governance counsel to a wide variety of health care and higher education organizations, public charities, associations and foundations. A recognized leader in compensation benchmarking, trends and analyses, SullivanCotter has also developed the most widely recognized physician and health care executive compensation surveys in the United States. Building from this unparalleled data, the firm works closely with executives, boards and compensation committees to devise innovative solutions to attract and retain talent while satisfying not-for-profit missions and regulatory requirements.
