MedAxiom’s New Provider Compensation Survey Reveals Major Healthcare Trends
Leading indicators show definite shift from volume to value in cardiac and healthcare industries
Third Annual Report on Compensation in Cardiovascular Specialties
MedAxiom Consulting, the nation’s top cardiovascular service line consulting firm, has published its third annual Cardiovascular Provider Compensation and Production Survey—a highly sought-after resource for cardiovascular and healthcare decision-makers navigating the volume-to-value shift taking place in both industries.
“Physicians are the single largest influencer of healthcare costs,” said Joel Sauer, vice president of MedAxiom Consulting and author of the report. “To succeed in a value economy, practice groups, hospitals and health systems must economically align this asset with both organizational and third-party payor value objectives. These changes will take significant time and effort, and given the pressing timelines from Medicare, programs must change at an unprecedented pace or they will not survive.”
Four key trends in MedAxiom’s 2015 Cardiovascular Provider Compensation and Production Survey
- Cardiology compensation continues to increase:overall cardiology compensation ticked up nearly six percent in 2014 to $542,000 per FTE, around $30,000 more per physician than in 2013. Driven almost entirely by the private cohort, these gains since 2013 are below the previous high in 2012 when median compensation topped $548,000.
- By contrast, overall cardiology production levels have decreased for the fifth straight year.
- Integrated surgeons make 36 percent more than private practice surgeons.
- On the surgical front, while compensation varies only slightly between cardiac vs. vascular surgeons, there are stark differences in their production levels, with vascular surgeons producing 22 percent fewer work Relative Value Units (wRVUs) than cardiac surgeons.
MedAxiom continuously refines and expands the data in its Cardiovascular Provider Compensation and Production Survey, and the third annual edition contains vital new data on non-clinical compensation measures around leadership positions and co-management activities. This was done to provide critical insight into value-oriented compensation for fair market valuators, allowing programs to better align provider compensation with the new healthcare economy. Total non-clinical compensation earned per FTE physician is over $45,000, nearly $1 million in aggregate for the median sized group in the data set, which is approaching nine percent of median total compensation.
The 2015 Survey includes sections about aligning economics with value in the new Cardiovascular Service Line (CVSL) imperative; detailed breakdowns on compensation around subspecialties, geography and productivity; and the growing role of Advanced Practice Providers (APP) and care teams.
The final section of the report, “Delivering High Quality, Low Cost Care: The Growing Role of Advanced Practice Providers and Care Teams,” includes a greatly expanded APP data set. “At 20 to 30 percent of the cost of a cardiologist, APPs provide a tremendous opportunity to increase a program’s patient volumes and, if done right, provide a better overall product,” said Ginger Biesbrock, vice president, MedAxiom Consulting and co-author with Sauer of the APP section in the 2015 report.
MedAxiom’s membership, which includes more than one-third of all U.S. cardiology and cardiovascular practices and programs, and its consulting services, offer both the cardiovascular performance community and the healthcare industry knowledge and resources based on the shared perspective and experience of thousands of physician and administrative members and over 650 data points covering every facet of cardiovascular service line operations. For additional information, visit: http://www.medaxiom.com/