Physician Pay and Productivity Are Moving in Opposite Directions, MGMA Report Finds
New benchmarks show compensation rising across all specialties in 2025 even as patient visits fell in all 23 core specialties and standard productivity measures declined in most — a disconnect driven by a worsening physician shortage.
Englewood, Colorado, June 10, 2026 (GLOBE NEWSWIRE) -- For the first time in several years, physician productivity and physician pay broke apart in 2025 — and the gap between them tells a story about just how strained the U.S. physician workforce has become, according to new data released today by the Medical Group Management Association (MGMA).
The 2026 Provider Compensation and Productivity Data report, drawing on 2025 data from more than 245,900 physicians and advanced practice providers nationwide, finds that year-over-year compensation growth remained modest in 2025 and trailed inflation:
- Primary care physician compensation rose 2.23%.
- Surgical specialist compensation increased 2.90%.
- Nonsurgical specialist compensation grew 1.79%.
With inflation rising 2.7% over the same period, only surgical specialists kept pace with the cost of living.
Over the past five years:
- Primary care physician compensation went up 15.04%.
- Surgical specialist compensation increased 16.33%.
- Nonsurgical specialist compensation rose 11.06%.
By comparison, the Consumer Price Index (CPI) rose 16.37% over the same period, meaning most physician pay gains barely kept pace with inflation — and nonsurgical specialists fell meaningfully behind.
The reason, the data suggests, is straightforward: physicians are scarce, and medical groups are paying more to land and keep them regardless of output. The Association of American Medical Colleges projects a U.S. physician shortage of up to 86,000 by 2036, retirements are accelerating as the workforce ages, and the hardest specialties take longer and cost more to fill than ever.
"How medical groups respond to this moment will shape patient access for years to come," said Akash Madiah, acting CEO of MGMA. "Compensation and staffing decisions made today aren't just financial, they determine whether practices can meet demand, retain talent and remain viable in an increasingly pressured system."
Key findings from the report include:
- One-year compensation gains were modest across the board, with only surgical specialists keeping pace with the 2.7% rise in CPI in 2025.
- The steepest productivity drops were among nonsurgical specialists, whose total patient visits fell 15.67% in a single year.
- Guaranteed starting pay for newly hired physicians eased from recent highs — most sharply for nonsurgical specialists (-6.77%) — but all three groupings (primary care, surgical specialist, nonsurgical specialist) remain above their 2021 levels, signaling a leveling off rather than a true market cooling.
- One in three medical groups lost a physician to burnout in the past year, up from roughly one in four in late 2024, adding pressure to an already constrained workforce.
- Nearly half of medical groups (48%) added Advanced Practice Providers (APPs) relative to physicians over the past year to maintain patient access, and APP compensation outpaced physician gains over five years in every grouping. (Source: MGMA Stat Poll)
- Hybrid compensation models — blending base salary with quality and other incentives — now account for more than 75% of reported structures, as pure salary and productivity models continue to erode.
The disconnect is set to deepen in 2026. Medicare's new productivity "efficiency adjustment," which took effect on January 1, 2026, reduces the workload scores assigned to many non-time-based procedures. The change hits the hardest in some of the most difficult-to-recruit specialties: urology, interventional cardiology, and diagnostic radiology. This means groups will need to keep pay competitive for these physicians at the very moment their measured productivity gets squeezed on paper.
MGMA's 2026 Provider Compensation and Productivity Data report includes benchmarks and analysis across physician specialties and advanced practice provider roles, with additional context from MGMA Stat polling and related reporting on reimbursement, burnout, AI adoption and staffing trends. The data are designed to help medical groups benchmark compensation, assess productivity and plan for continued market volatility.
About MGMA: MGMA is a nonprofit membership association dedicated to advancing the business of healthcare. Over its 100-year history, the organization has supported more than 60,000 medical practice leaders nationwide through advocacy, education, data insights and professional community. Representing more than 15,000 medical groups across all sizes and specialties, MGMA empowers practices — and the 350,000 physicians they support — to deliver exceptional patient care while navigating an increasingly complex healthcare landscape.
Media Contacts:
Kathy Michel
Director of Communications
press@mgma.org
(303) 643-9592
Samantha Tirado
Director of Policy Communications – Government Affairs
press@mgma.org
(303) 643-9592
Contact Info
Medical Group Management Association (MGMA)
press@mgma.org
+1 877-275-6462 ext. 1478
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