PHILADELPHIA--(BUSINESS WIRE)--Physicians across all organization types can expect to see median salary increases of 2.4 percent for 2014, on par with salary increases last year, according to results from Hay Group’s 2013 Physician Compensation Survey released today. Physicians in group-based practices can expect to see larger pay increases (3.7 percent) than those in hospital-based settings (2.2 percent).
“Overall physician compensation levels continue to modestly increase,” said Jim Otto, senior principal in Hay Group’s Healthcare Practice. “We don’t expect to see any fundamental changes in the near future. Physicians are being tasked with a growing list of new demands – from learning EHR systems to navigating new cost and business model structures – which are influencing how employers want to address compensation increases.”
Continuing a recent trend, primary care physicians can again expect to see slightly higher salary increases than specialists in 2014, particularly in hospital-based settings.
“We have been seeing a slowdown in pay rate increases for physician specialists, and a bump up for generalists, over the last several years, and this trend seems to be continuing,” Otto said. “This may be reflective of fewer graduates pursuing general medicine and additional responsibilities for generalists in driving pay-for-performance health care. The question remains if and how declining hospital revenues and reimbursement changes will affect physician pay.”
The 2013 Hay Group study found that the prevalence of annual incentive plans for physicians remains steady at 63 percent, compared with 64 percent reported in 2012. The measures used to determine incentive payouts – both for individual and group performance – are reflective of providers’ shifting emphasis on quality and patient outcomes. For individual physician performance, there were upticks reported in 2013 incentive plan metrics related to patient satisfaction (70 percent), quality (86 percent) and outcomes (54 percent), compared with 2012 (66 percent, 77 percent and 39 percent, respectively). Group performance metrics in physician incentive plans tracked similarly upward for patient satisfaction (60 percent reported in 2013, compared with 50 percent reported in 2012) and quality (69 percent in 2013, compared with 56 percent in 2012).
“We expect an evolution – not revolution – in incentive plan design for physicians in coming years,” Otto said. “Providers are looking to translate their organizational goals in a more tangible way that will drive the desired behaviors and outcomes they want to achieve. They are still struggling with the best ways to align physicians and other employees with broader goals, and to measure output quality.”
Study depth and methodology
Hay Group has conducted its independent Hay Group’s Physician Compensation Survey for more than 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 1, 2013.
Hay Group has a unique collection and analysis process for physician compensation data, which provides a more nuanced breakdown than other surveys that combine various physician compensation elements 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 Liz DeForest at email@example.com or at 212-584-5477.
About Hay Group
Hay 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 86 offices in 48 countries, we work with over 8,000 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.