Hospitalist salary data is constantly changing. I am aware of two detailed survey reports that are published yearly. One comes from a joint effort by the Society of Hospital Medicine (SHM) and Medical Group Management Association (MGMA). The other is published annually from Today's Hospitalist, a leading hospitalist publication. This post on The Happy Hospitalist will update yearly when new information becomes available. I continue to provide older data as reference for those who wish to track the trend in hospitalist compensation over time as one easy to find resource.
|Today's Hospitalist 2012 total compensation excluding benefits|
I have previously purchased the salary survey report from SHM. I found it eye opening. Understanding salary and productivity data is mandatory for any hospitalist who wants to be satisfied they are getting paid what the market says they are worth. With so many variables in hospitalist income, including geographic location, size of the group and the structure of the group, studying compensation data from SHM/MGMA and Today's Hospitalist is mandatory if you want to understand what it means to your specific situation. Have a great year and I'll update this post when I see the most up-to-date data come across the wire!
NP and PA Hospitalist Salary Update
- The nationwide average for all cash compensation (not including benefits) was $215,000, a rise of 17% since the 2008 survey. By region the numbers broke down as follows
- Midwest $211,715
- Northeast $205,000
- Southeast $235,701
- West $213, 831
- Median workRVU (wRVU) per FTE hospitalist per year is 4,107, an increase of just over 10% from 2 years ago (but remember the skewed population comparison)
- wRVU per encounter was 1.86 an increase of just over 21% ( but again, we are excluding the less productive academic physicians in this survey)
- Using my own math, if you take 4,107 wRVUs/year and divide it by the 1.86 wRVU/encounter, you can see the average hospitalist saw, on average, 2,208 encounters/year.
- The collection per workRVU was $45.57 (compared with $44.97 in 2008, a 1.3% rise in two years). This number can be affected by payer mix, allowable charges, number of uninsured, aggressiveness of the billing company, and what the government defines as the value of an RVU. The current rate of payment for one RVU for a Medicare patient is about $35. Using my calculator, you can extrapolate the average work RVU collections per year per hospitalist comes out to 4,107 * $45.57, or $187,000 in unsubsidized revenue. This amount does not include RVU collections for the practice expense and malpractice expense components of the total RVU formula. If you add an additional 20% conservative estimate for collections from these components, you'll see that the hospitalist is collecting an additional $35,000-$40,000 a year, or about $220,000 in total RVU collections, per year.
- Hospital financial support (subsidy) per hospitalist per year by the sponsoring hospital rose to mean average of $111, 486. If you have 20 hospitalists in your group, your hospital, on average is providing over 2.2 million dollars in financial subsidy. What that says to me is that hospitals continue to see great value and return on their investment for implementing hospitalist groups aggressively. If you add this to the $220,000 a year in insurance and self pay collections, the average non academic hospitalist position is worth around $330,000 in total value. Subtract 10% for administrative expenses (or more if you implement the hiring of secretaries, business managers, legal and accounting expenses, RNs, PA's or APRNs to help make the practice run smoothly) and I would suggest the total compensation package of hospitalists should be around $300,000 a year.
With that said, I agree about not making significant comparisons between the 2008 survey and the 2010 survey. We have stripped out the skewed economics of academic medicine and now have a much more accurate evaluation of community based hospitalist economics.