Primary Care Physicians Boost Income in 2010, Survey Finds

June 15, 2011 — Primary care physicians saw modest increases in their 2010 compensation, while some of their better-paid specialist colleagues lost ground, according to a new survey of almost 60,000 physicians around the United States from the Medical Group Management Association (MGMA).

In the Physician Compensation and Production Survey: 2011 Report Based on 2010 Data, internists were found to have earned a median of $205,379, which is an increase of 4.21% since 2009. Family physicians (without obstetrics) saw their median incomes rise by 2.94% to $189,402, and pediatricians had a compensation increase of 0.39% to $192,148, which did not keep up with the low inflation rate.

Six specialties — anesthesiologists, gastroenterologists, obstetricians/gynecologists, ophthalmologists, diagnostic radiologists, and urologists — have had modest declines in income since 2009. The largest decrease was a drop of 4.66% for urologists, who earned a median of $372,455, the survey found.

Psychiatrists, dermatologists, neurologists, general surgeons, and emergency medicine physicians were among the specialists who reported an increase in median compensation since 2009. The largest percentage increase of 5.65% was for emergency medicine physicians, who earned a median of $277,297.

Orthopaedic surgeons were the top earners in the survey, at a median compensation of $514,659 (up 3.71%), followed by invasive cardiologists ($500,993), diagnostic radiologists ($471,254), gastroenterologists ($463,995), and dermatologists ($430,874).

Physicians practicing in the South reported the highest median earnings, at $216,170 in primary care and $404,000 in specialty care. They were followed by physicians in the Midwest and West. Physicians in the East earned the least, at $194,409 in primary care and $305,575 in specialty care.

"A number of factors may attribute to regional differences in physician compensation," Jeffrey B. Milburn, MBA, CMPE, from the MGMA Health Care Consulting Group, said in a news release. "The supply and demand for primary care or specialty physicians may influence compensation. A high level of competition between groups or specific specialties may provide an opportunity for payers to reduce reimbursement. In states where payers have little competition, reimbursement and subsequent physician compensation may be lower.

"Location desirability is another factor influencing competition and compensation," Milburn noted. "Some areas have a much higher ratio of physicians to population, and one might think this would lead to increased competition and lower compensation. But the usual laws of supply and demand aren't always at work in health care."

MGMA, based in Englewood, Colorado, is an association for professional administrators and leaders of medical group practices. It serves 22,500 members who lead 13,600 organizations nationwide in which some 280,000 physicians provide more than 40% of the healthcare services delivered in the United States, the group says. MGMA notes that its surveys depend on voluntary participation and may not be representative of the industry.