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Survey: Compensation up, profits down for many specialties

Physician Practice Advisor, September 6, 2006

In 2005, 89% of medical specialties saw increases in compensation, with an overall average increase of around 6%, according to the 2006 Medical Group Compensation & Financial Survey, which is published annually by the American Medical Group Association (AMGA). Primary care experienced roughly an 8% increase, and medical and surgical specialties averaged around 6% and 5% increases, respectively.

Despite the compensation increases, only organizations in the Western region of the United States operated on a profit ($7,970 per physician); organizations in the Northern region saw the most significant losses at more than $8,000 per physician.

"The survey indicates that compensation increases reflect the rise in the cost of living," Donald W. Fisher, Ph.D., president and chief executive officer of AMGA, said in a press release. "However, declining reimbursements, competition for specialists, the cost of new technology, and other factors are having a negative effect on revenues in most parts of the country, a situation that is clearly unsustainable."

Click here to read the AMGA press release.

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