RSNA News - October 2004
Diagnostic Radiology Earns Highest Four-Year Pay Increase
There is still a shortage of available radiologists and this is driving
up their market value.
— Donald W. Fisher, Ph.D.
A new survey by the American Medical Group Association (AMGA) shows
diagnostic radiologists in group practices remain among the highest-paid
specialists in the United States. Not only did diagnostic radiologists
enjoy strong compensation increases in 2003, but also, over the past
four years, they have seen larger percentage and dollar increases
than any of the other 27 medical specialties studied.
In 2003 the median compensation for a diagnostic interventional radiologist
was $410,250—the second highest in the survey. Cardiac/thoracic surgeons
took the top spot at $416,896. In 2002, median income for a diagnostic
interventional radiologist was at $401,000, slightly higher than the
$400,500 reported for cardiac/thoracic surgeons.
Diagnostic non-interventional radiologists maintained fifth-ranked
status in median compensation in 2003 at $345,619, behind catheter
lab cardiologists ($368,938) and orthopedic surgeons ($354,495).
Four-Year Evaluation
Evaluation of radiology salaries over the past four years demonstrates
continuing demand in the specialty. Since 2000, diagnostic interventional
radiologists have seen a 34 percent increase in median salary; diagnostic
non-interventional radiologists saw an increase of nearly 32 percent.
That translates to a $104,250 jump in median compensation for interventional
radiologists and an $83,040 increase for non-interventional radiologists
since 2000.
"The single biggest driver of salaries is the availability of
specialists that medical groups are looking for. There is still a
shortage of available radiologists and this is driving up their market
value," says Donald W. Fisher, Ph.D., AMGA president and CEO.
The AMGA salary survey, released in July 2004, came from 204 multispecialty
groups. But Dr. Fisher says the data are relevant for single specialty
groups, who are, in most cases, paid more.
"We think it's appropriate and valuable to do this kind of benchmarking.
It's important for physicians to take a look at their compensation
strategy and to see what changes need to be made to be attractive
to members of their profession," he says. "We also do productivity
measures. It allows our members to see if they are working as hard
as their peer group. We like to see how we're doing."
Productivity
Diagnostic radiologists also showed strong results in gross charges—a
measure of a physician's productivity. Non-interventional diagnostic
radiologists saw a 32 percent increase in median gross charges from
2000 to 2003, while interventional radiologists saw an increase of
nearly 11 percent. The top three specialties finishing the four-year
survey period with the highest percentage changes in gross charges
are pathology (43 percent), urology (42 percent) and gastroenterology
(38 percent).
AMGA says gross charges are important to measure, not just for productivity
data, but also because the numbers are used in determining physician
compensation.
Work RVUs
A third category reviewed by AMGA is work RVUs, or technical relative
value units. The numbers are established by Medicare and are used
in its fee formula, along with practice and malpractice expenses.
The work RVU indicates the professional value of services provided
by a physician.
"RVUs take into account calculations involving patients and
procedures performed, along with the skill of the physician and the
risk of the procedure," says Brad Vaudrey, a manager with RSM
McGladrey, Inc., the firm AMGA hires to conduct the yearly survey.
"The Centers for Medicare & Medicaid Services (CMS) provides
the value for each procedure, and we've found that 40 percent of physicians
in group practices use RVUs as a measure for compensation decisions."
In analyzing the RVU data, McGladrey found interventional radiologists
at the top of the list with a median 8,726 work RVUs in 2003—down slightly
from 2002. In second place were the cardiac/thoracic surgeons with
8,107 work RVUs, followed by gastroenterologists (7,219), ophthalmologists
(7,200) and non-interventional radiologists with 7,183 work RVUs—an
increase from 2002.
Catheter lab cardiologists saw the largest single-year decline in
median work RVU productivity at 12.39 percent.
Baby Boomer Impact?
While demand for radiologists continues to be strong, the changes
in compensation figures demonstrate a slight shift in the recruiting
landscape reflected in this year's data from the Merritt, Hawkins
and Associates Review of Physician Recruiting Incentives. In 2003,
radiologists were the most highly recruited of the medical specialties.
The 2004 study of income offered to the top 15 recruited specialties
showed the strong demand for orthopedic surgeons just edged radiologists
into second place. Average income offers to recruited radiologists
rose from $317,000 in 2003 to $336,000 this year, reflecting a strong
and steady demand in the profession. The average income of newly recruited
orthopedic surgeons is slightly lower than radiologists at $330,000,
but the number of searches conducted in the specialty has grown from
140 in 2001, to 210 in 2004. The number of searches Merritt Hawkins
conducted for radiologists fell from 230 last year to 202 this year.
"We attribute this to the natural cycle of physician recruitment
in which efforts tend to focus on certain areas of high demand which,
over a period of several years, are eventually addressed by many providers,"
analysts for Merritt Hawkins reported in their annual survey. The
company also attributes strong demand for radiologists and orthopedic
surgeons to an aging population that wants to remain active.
"Older patients utilize x-rays and other imaging modalities
at a rate three times higher than younger people," said the Merritt
report. "Demand (for orthopedic surgeons) is being driven by
the 'active elderly' and aging baby boomers who are seeking to maintain
vibrant lifestyles and often require orthopedic surgery to do so."
This information should make radiologists feel positive about their
future earning power. "Based on these numbers and our experience,
radiology is still going to be a high-demand specialty and practitioners
should expect above-inflationary compensation increases," says
Vaudrey.
2003 Median Physician Compensation
Cardiac/thoracic surgeon: $416,896
Diagnostic radiologist (interventional): $410,250
Catheter lab cardiologist: $368,938
Orthopedic surgeon: $354,495
Diagnostic radiologist (non-interventional): $345,619
Source: AMGA
