MD Ranger, Inc. Releases 2017 Physician Compensation Benchmarks

April 13, 2017

Contact: Julia Ogburn, Senior Marketing Manager

Phone: 650-692-8873

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BURLINGAME, Calif.--MD Ranger, Inc. today announced the release of 2017 physician compensation benchmarks for call coverage, medical direction, administrative services, leadership services, hospital-based services, clinical professional rates, telemedicine, and diagnostic testing rates. The release marks the eighth year of publication of 275 benchmarks used by health care providers to determine market rates and document fair market value of physician contracts. MD Ranger’s platform is used in over 325 facilities across the United States, including large not-for-profit health systems, urban trauma centers, rural critical access facilities, specialty hospitals, clinics, and by physicians.

MD Ranger’s Founder and CEO Penny Stroud says, "A growing number of health care organizations pay physicians for case/care management and quality initiatives, likely an outgrowth of pay-for-performance initiatives. In 2016, 17% of MD Ranger subscribers paid for case/care management, in 2017 that figure jumped to 51%. The 75th percentile for annual payments in 2016 was $81,290 and in 2017 it is $104,480. IT/EHR payments to physicians also continue to grow.”

Given uncertainty around reimbursement and physician incomes, hospitals and health care organizations continue to spend more money paying physicians for non-clinical duties like taking emergency call, serving as medical directors, or taking on administrative roles. “Despite the growth in hospital-sponsored physician employment, hospital expenditures for call coverage, leadership positions, medical directorships, hospitalists, and committee/meeting attendance continue to grow in scope and amount," says Stroud.

Key findings from the new benchmarks include:

  • Per diem call coverage rates grew an average of 5% over last year while median annual payments for medical directorships rose 13%.
  • A number of call coverage services saw significant increases in the percentage of MD Ranger subscribers paying for the service. Orthopedic call coverage grew from 53% to 83% of MD Ranger hospitals paying for the service. Ophthalmology coverage grew from 27% to 52% paying for the service. Pediatrics and Cardiology/STEMI also experienced upticks: both services jumped 19 percentage points from 27% to 46% and 24% to 43%, respectively.
  • Over the past five years, medical director median annual payments for surgical specialties have declined. In 2012, the median annual payment for surgical specialties was $82,700. This year, it was $61,050. The decline could be the result of more small hospitals starting to pay for directorships that previously were only paid at large programs. Median annual payments for medical specialists declined less, decreasing from $55,000 in 2012 to $54,000 in 2017.
  • The bifurcation of hospital vs. office-based medicine continues to be reflected in hospital-based specialty growth. In 2012, MD Ranger reported benchmarks for 10 hospital-based specialties; this year, it reported 20, including psychiatric hospitalists and OB laborist programs. More evidence of the impact of pay-for-performance is the increase in hospital-based agreements that include incentive payments, growing from 28% in 2016 to 39% in 2017.

A selection of the 20+ new benchmarks reported in the new release includes:

  • Hand Surgery call coverage
  • Pediatric Orthopedic Surgery call coverage
  • Spine Surgery medical direction
  • Pain Management medical direction
  • Continuing Medical Education
  • Peer Review
  • Psychiatric Hospitalists
  • Pediatric Critical Care

MD Ranger partners with leading health care organizations to simplify the physician contracting process. Through its intuitive online platform, MD Ranger helps health care organizations and medical groups set payment rates and document FMV. MD Ranger’s approach streamlines the process and reduces the cost of compliance documentation and negotiation for large and small health care providers.