Group-Practice Psychiatrists See Temporary Income Increase

Physicians in medical group practices saw a slight increase in compensation in 2001, according to a recent survey. But those increases are liable to disappear when the same survey reports data next year on 2002 income.

The “Medical Group Management Association’s Physician Compensation and Production Survey: 2002 Report Based on 2001 Data” shows that compensation for primary care physicians rose 1.21 percent to $149,009 in 2001. Compensation for specialists rose 2.64 percent overall to $263,254.

However, the 2001 data do not reflect the impact of a 5.4 percent average reduction in Medicare reimbursements that went into effect on January 1, 2002. That reduction, and other factors in the health care market, could send doctor incomes down in 2002, say association officials.

“While vital for benchmarking purposes, the 2002 report speaks to how medical groups managed in 2001,” said William F. Jessee, M.D., president and chief executive officer of MGMA. “We anticipate that the combination of the 5.4 percent Medicare reduction and the recent industrywide increases in medical liability premiums will lead medical groups to experience a far different compensation and production landscape for 2002.”

Psychiatry experienced an increase of 0.65 percent in income between 2000 and 2001, and a 13.32 percent increase in income between 1997 and 2001.

Importantly, the overall compensation for psychiatrists during 2001 was higher than that for pediatricians, internists, and family practitioners. Overall, compensation for psychiatrists was $157,509, compared with $150,222 for pediatricians, and $149,702 for internists. Overall compensation for family practitioners (who do not also practice obstetrics) was $149,009.

The median income for psychiatrists in single-specialty group practices was $174,605. For psychiatrists in multispecialty practices, the median income was $160,303.

“Psychiatry is a cognitive specialty like internal medicine, pediatrics, and family medicine,” APA Medical Director James Scully, M.D., told Psychiatric News. “It is good to note that we are at least keeping up with our colleagues in terms of income, even as we deal with the stresses currently affecting the practice of medicine. Considering the level of education and training, this relatively small increase is not likely to influence students who expect a large income to select psychiatry as a specialty. We will continue to recruit students who are intrigued by the complex illnesses and opportunities to really help people who are suffering from psychiatric illnesses.”

The “MGMA Physician Compensation and Production Survey: 2002 Report Based on 2001 Data” features information for 95 physician specialties and subspecialties and 22 nonphysician provider specialties. The report uses several productivity measures: gross charges, ambulatory and hospital encounters, surgery/anesthesia cases, and total and physician work relative value units (RVUs). The report also includes ratios of compensation-to-production and compensation-per-physician work RVUs.

Data were collected through survey questionnaires that were mailed in February 2002 to MGMA member and nonmember individuals in 11,440 organizations. The response rate was approximately 25 percent. As part of the data collection strategy, both printed and electronic survey questionnaires were made available.

Among specialties that were surveyed, noninvasive cardiology experienced the greatest increase in compensation between 2000 and 2001, with a 12.14 percent increase. This was followed by specialists in diagnostic radiology, who experienced a 11.41 percent increase in compensation.

Compensation also rose for nonphysician providers of health care services in group settings. Psychologists’ compensation rose 2.04 percent between 2000 and 2001; the overall median compensation for psychologists in 2001 was $69,331.

Jessee emphasized that MGMA is lobbying Congress and the Bush administration to enact legislation to correct the reductions in Medicare for 2003 and beyond.

“Unless the Senate acts swiftly to ratify the increases legislated by the House, medical groups will be unable to effectively budget and operate in 2003,” said Jessee. “The continued expansion of the Medicare beneficiary population will only exacerbate the need for adequate compensation for our nation’s physicians.” ▪