How are you doing compared to your colleagues? The 2007 Medical Economics Exclusive Survey gives you a chance to find out. The survey, conducted in July and August of this year, included questions
about physician compensation; productivity; practice setting, size, and staff; expenditures; and third-party payer arrangements;
as well as basic demographic data. (For details about our methodology, go to http://www.memag.com/2007survey)
In this issue, we focus on physician earnings and physician productivity, so read on to discover what your colleagues earned and how hard they worked last year. Our Dec. 7 issue will cover other
highlights from our Exclusive Survey, including expenses, malpractice, and capitation.
What primary care doctors earned
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Physician compensation in 2006 once again reflects economic forces that are eroding the cottage-industry model of medicine.
If you want to earn more, join a group practice.
The financial advantages of doing so emerge in the 2007 Medical Economics Exclusive Survey. While family physicians, internists, pediatricians, ob/gyns, and general practitioners as a whole earned
a median of $165,000 last year, the soloists among them trailed the pack at $152,000, with doctors in two-partner practices
second from last. Their peers in groups of 50 or more posted the highest earnings—$175,000.
Group size and earnings, by specialty
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Bigger paychecks reflect several advantages enjoyed by larger groups. They're often in a stronger position to negotiate fees
with insurers. They can raise more capital to invest in income-producing ancillary services such as diagnostic imaging. And
they may be able to lower overhead per doctor through their collective buying power and shared resources.
The prospect of higher earnings is motivating primary care doctors to join forces, but not as fast as you might expect. The
percentage of internists, FPs, and pediatricians in solo practices and two-doctor groups slipped just a notch—from 37.5 percent
in 1996-1997 to 35.6 percent in 2004-2005, according to the nonpartisan Center for Studying Health System Change (HSC). Those
in groups of three to five also fell as a percentage, going from 10.3 percent to 7.3 percent during the same period.
How earnings break down
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Why isn't the exodus from the cottage-industry model more dramatic? HSC President Paul Ginsburg speculates that many primary
care physicians don't deem the potential pay raise big enough to justify surrendering professional autonomy. "They like being
their own boss," he says.
Practice Tools
