Industry Reports Show Primary Care Physicians Are Feeling Squeezed

Over the past few years, physicians – and primary care doctors especially – have been under an incredible amount of stress.

Rapid provider consolidation, lower compensation from payers, staffing shortages, and more technical and administrative burdens are making it increasingly difficult for physicians to thrive. It’s no wonder that burnout is at unprecedented levels.      

Several recently published state-of-the-industry reports and compensation reports give us a window into the realities physician practices face. At Alo, we track industry benchmarks on compensation, staffing and other indicators and use these insights to better understand the healthcare landscape. Here is our summary of three such reports:      

MGMA: Compensation Not Keeping Up with Inflation      

A report from the Medical Group Management Association (MGMA) found that although income for primary care physicians rose in 2021 and 2022, compensation failed to keep up with steep rates of inflation. Increases in median total compensation for primary care physicians were 2.13% in 2021 and 4.41% in 2022. Not bad, except when you consider that the gains were significantly lower than the 7% inflation rate in 2021 and the 6.5% inflation rate in 2022.  

The 2023 MGMA Provider Compensation Data Report was compiled using data collected from nearly 190,000 clinicians at more than 6,800 healthcare organizations. The report also found advanced practice provider (APP) compensation experienced a moderate uptick within the last year, ranging from 4.08% to 9.22% depending on the specialty.

Medscape: Gender Disparities Prevalent but Improving

Gender disparities in physician salaries among male and female primary care physicians narrowed in 2022, but there is still a long way to go, according to the 2023 Medscape Physician Compensation Report.

Women in primary care earned 19% less than male primary care physicians in 2022. That’s an improvement from the 25% less they earned in 2018, but still far from equitable. Specifically, female physicians earned an average of $239,000 in 2022 compared to $286,000 for male physicians. Gender disparities were even more pronounced among specialists, where men earned an average $415,000 which was 27% more than women specialists’ $327,000 average.

The report also discussed the impact of burnout, which is leading more physicians to make choices such as reduced shifts, shift work, and a move to virtual care for their mental health and work-life balance. This is consistent with what we hear from employed physicians, especially those employed by hospitals or health systems—a significant dissatisfaction with their work environment. This includes increasing pressure to see more patients per hour and an inability to manage their practice in a manner that meets their personal or professional need.

Doximity: Overwork Fueling Burnout, Early Retirement        

A report by Doximity found that physician compensation, after increasing 3.8% in 2021, actually dipped by 2.4% in 2022. Like the other reports, the Doximity numbers also noted the compensation-eroding effects of high inflation, and a persistent gender gap among male and female physicians.

The report also cited a recent Doximity survey of 2,000 physicians that found 86% felt overworked, and 67% were considering a career change as a result. Nearly 36% were considering early retirement.

“The growing physician shortage issue and aging population in the U.S. only add to the severity of the situation, making it imperative to prioritize the well-being of our physicians and health care workers,” the report concluded.

Women physicians were more likely than men to say they were considering early retirement, changing careers or looking for another employer to restore a better work-life balance.

Annual average compensation for primary care specialties in the Doximity report included:

• $293,894 for internal medicine

• $273,040 for family medicine

• $242,832 for pediatrics

• $275,704 for geriatrics

• $275,068 for preventive medicine

Takeaways

While it’s positive sign to see some indications of a trend toward higher primary care compensation, it hasn't risen as much as the Consumer Price Index, which was up by 6.5% from 2021 to 2022. This puts additional stress on providers who are already stretched thin.

Staffing remains a stressor as well. Primary care physicians are leaning on APPs even more so than in the past – 65% of medical groups said they planned to add new APP roles in 2023.

I mentioned earlier that Alo carefully tracks these types of industry reports. Third-party data give us confidence to deliver the right solutions to our physicians, helping them exceed these averages. 

In 2021, Alo joined forces with Avance Care, a network of primary care practices in the Raleigh-Durham and Charlotte areas. The combined model for Alo and Avance Care supports physicians in delivering more efficient, affordable, coordinated care. This year we’re launching the Alo Clinically Integrated Network (CIN) to give North Carolina practices the ability to better share in the value of the care they deliver. 

In short, physician satisfaction matters. We want physicians in North Carolina to enjoy the benefits of collaborating with like-minded peers, have the power to adjust compensation relative to effort, and thrive while practicing medicine.