Physicians likely to seek new contracts as their productivity soars, pay drops: 6 report details

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Physicians were more productive in the second quarter of 2021 than in 2020, but pay has declined, according to a new report from KaufmanHall.

The Physician Flash Report, released Aug. 24, surveyed almost 100,000 employed physicians and advanced practice providers to gather insight on productivity, expenses and pay. The decline in physician compensation may have implications for future employment contracts.

"Healthcare leaders should prepare for physician demands to restructure contracts in anticipation of future public health emergencies. Efforts to increase quality incentives likely will be offset by physician interests in stabilizing base compensation," the report said.

Six takeaways from the report:

1. Physician compensation per work relative value unit dropped 24 percent in the second quarter to $53.90 per wRVU, versus $70.88 per wRVU in the same period last year. Physician pay per wRVU dropped 7.5 percent from pre-pandemic levels in the fourth quarter of 2019.

2. Physician pay per full-time employee was up 5 percent from the second quarter of 2020, hitting $312,799 in 2021.

3. Investment per physician also dropped more than 20 percent in the second quarter. The median investment per physician full-time equivalent was $232,583.

4. Net revenue per physician hit $631,488 in the second quarter, up 56.2 percent over the same period last year.

5. Quarterly expenses per full-time physician were up 21.3 percent to $875,878.

6. Physician practices improved efficiency in the last year, while support staff full-time employees per 10,000 wRVUs has declined 15.3 percent since the second quarter of 2020.

 

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