Report Says Volume, Not Value, Still Drives Physician Compensation

Merritt Hawkins' 2015 Review of Physician and Advanced Practitioner Recruiting Incentives features the latest data on physician employment and compensation trends. Check out the infographic previewing survey results. The complete report can be obtained by calling Merritt Hawkins at (800) 876-0500.

Key survey findings include: 

  • Demand for psychiatrists is at an all-time high as the national shortage of behavioral health professionals grows.
  • The great majority of newly recruited physicians (more than 90 percent) are employed rather than in independent practice.
  • Volume, not value, continues to drive physician compensation.
  • For the ninth year in a row, family physicians are No. 1 on Merritt Hawkins' list of most-recruited doctors.
  • Team-based care/population health is sparking demand for physician assistants, nurse practitioners, and chronic care specialists. 

The new report suggests the use of value-based physician incentives has stalled. Of those offering physicians a production bonus last year, only 23 percent based the bonus in whole or in part on value-based metrics, such as patient satisfaction, compared with 39 percent two years ago. 

Despite the national movement from volume- to value-based payments, Merritt Hawkins' report shows physician compensation continues to be driven by volume-based metrics such as relative value units, patient visits, and net collections. 

Action, Aug. 3, 2015

Last Updated On

June 17, 2016

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