MGMA 2026 Compensation Report: Physician Pay Rises as Productivity Falls

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Medical Group Management Association (MGMA) June 10, 2026
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Physician compensation rose across every specialty in 2025 even as productivity fell, according to MGMA’s 2026 Provider Compensation and Productivity Data report, drawing on data from more than 245,900 providers. Primary care pay rose 2.23%, surgical specialists 2.90%, and nonsurgical specialists 1.79% — but with inflation at 2.7%, only surgeons kept pace. Nonsurgical specialists’ patient visits fell 15.67% in a single year. The driver is scarcity: one in three groups lost a physician to burnout, 48% added advanced practice providers to protect access, and hybrid pay models now exceed 75% of structures. Medicare’s 2026 efficiency adjustment is set to widen the pay-productivity gap further.

Why It Matters

For multi-site and PE-backed groups, compensation is rising while measured output falls — squeezing margins precisely as Medicare’s efficiency adjustment lowers productivity credit in hard-to-recruit specialties. Workforce strategy, APP leverage, and incentive design now drive viability as much as patient volume.

physician compensation provider productivity workforce shortage physician burnout advanced practice providers hybrid compensation MGMA benchmarks

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Frequently asked questions

How much did physician compensation rise in 2025?

Primary care physician compensation rose 2.23%, surgical specialists 2.90%, and nonsurgical specialists 1.79%. With inflation at 2.7%, only surgical specialists kept pace with the cost of living, and over five years most physician pay gains barely matched the 16.37% rise in CPI.

Why are physician pay and productivity moving in opposite directions?

A worsening physician shortage is forcing medical groups to pay more to recruit and retain physicians regardless of output. Nonsurgical specialists’ total patient visits fell 15.67% in a single year while compensation still rose, and the AAMC projects a U.S. physician shortage of up to 86,000 by 2036.

How are medical groups responding to the workforce squeeze?

Nearly half of groups (48%) added advanced practice providers relative to physicians to protect patient access, and APP compensation outpaced physician gains over five years. Hybrid models blending base salary with quality and other incentives now account for more than 75% of reported compensation structures.

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