Private practice physicians make more than those in academic practices

Annual compensation for primary care and specialty care groups in academic practice slowed between 2008 and 2009, increasing only 2.93 percent for primary care physicians and 2.43 percent for specialists, according to a report by the Medical Group Management Association.

The MGMA’s report, “Academic Practice Compensation and Production Survey for Faculty and Management: 2010 Report Based on 2009 Data,” shows that primary care physicians reported compensation of $158,218, while specialty care physicians reported $238,587. Also, from 1999 to 2009, compensation in academic practices continued to trail that of private practices.

“The economics of academic medicine are that teaching and research activities are not reimbursed in the same manner as in clinical practice,” said Billy Newton, vice dean for finance and resource planning at the Duke University School of Medicine. “The private practicing physician typically produces more patient care revenue than the academic physician, whose role also includes teaching, research and other administrative efforts.”

According to the report:

• Between 2005 and 2009, compensation for primary care providers’ in academic practice rose 16.96 percent, and compensation for specialists increased 20.81 percent.
• For physicians in internal medicine, compensation increased 4.46 percent between 2008 and 2009, while annual compensation of family practitioners increased only .42 percent.
• Compensation for cardiologists (invasive) increased 7.29 percent, while neurologists' compensation decreased 2.52 percent, between 2008 and 2009.
• Ophthalmologists experienced a 9.35 percent rise in compensation over the past year, while many other specialists reported slight decreases in compensation.
• Factors contributing to changes in compensation levels included geographic section, faculty rank and productivity.
• Median compensation for primary care physicians increased in three of the four reporting geographic sections, the greatest increase occurring in the Midwest (6.75 percent). Physicians in the West reported a decline in compensation.
• Specialists reported similar trends; compensation in the West section decreased by 2.11 percent between 2008 and 2009.

Survey respondents also reported compensation increases and decreases based on faculty rank. Primary care positions, including department chairmen, experienced increased compensation (up 13.86 percent from 2008). Some specialty care professionals reported decreased compensation based on their rank. Compensation for assistant professors and professors decreased .09 percent and .07 percent, respectively.