Practices with the Highest Management Compensation

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Health executives and administrators receive the highest compensation in large practices and hospital-owned practices, according to new Medical Group Management Association (MGMA) data released in a press release, while physician executives receive higher compensation at physician-owned practices.

MGMA’s Management and Staff Compensation Survey offers several important insights into medical practice today:

  • Compensation by ownership: Senior and general managers at hospital-owned practices saw higher compensation than their peers in physician-owned practices in 2015. Median compensation for non-physician CEOs at hospital-owned practices was $305,000 last year, compared to roughly $242,000 for CEOs at physician-owned practices. For administrators, median compensation followed a similar pattern: approximately $141,400 at hospital-owned practices and $100,600 at physician-owned practices. By contrast, physician executives earned higher median compensation at physician-owned practices than at hospital-owned practices last year, at $350,000 and $300,000, respectively.
  • Compensation by practice size: Median compensation for practice executives varies significantly based on the size of the practice. Practice CEOs and executive directors at practices with 25 or fewer employees earned approximately $181,000 in median compensation last year. By contrast, those in practices with 151 or more full time employees received more than $430,000 in compensation, more than twice as much, and their peers in mid-sized practices with 26 to 50 full time employees earned roughly $252,000. Similarly, administrators in these mid-sized practices earned $180,500 last year, while their counterparts in small practices with six or fewer employees earned less than $90,000.
  • Compensation by geography: CEOs and executive directors in the Midwest received the highest compensation last year, with those at larger practices receiving median compensation totaling more than $447,500, and those at smaller practices with 25 or fewer full time physicians receiving less than $234,000. Executives at larger practices in the East and at smaller practices in the South received less than their peers at similarly-sized practices in other regions.
  • Bonus compensation: Physician executives at hospital-owned practices received larger median bonus and incentive payments, nearly $70,000, than those in physician-owned practices, where the median bonus and incentive payment was $36,000 in 2015. Non-physician management executives at hospital-owned practices received median bonuses and incentive packages of approximately $24,000, compared to a median of $10,000 for non-physician executive managers at physician-owned practices.

The complete MGMA Management and Staff Compensation Survey Report also includes manager and staff salary data broken down by state and years of experience, including detailed total compensation, hourly rate, retirement benefits, and bonus and incentive payments metrics.

Through its national membership and 48 state affiliates, MGMA represents more than 33,000 medical practice administrators and executives in practices of all sizes, types, structures and specialties, which represent more than 275,000 physicians and more than 46% of the healthcare delivered in the United States.

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