Based on a cursory review of the latest MGMA physician compensation and productivity survey data, physician productivity increased sharply in 2021 from 2020 and has rebounded to levels prior to the pandemic. Median physician compensations for 2021 have generally increased on average 4% from 2019, which is less than the current inflation rate. Furthermore, compensation per wRVU in 2021 compared to 2019 is essentially flat, which means we’re “kinda back to where we started”, pre-pandemic.

It’s common and customary in the healthcare space to rely on survey data to establish an FMV compensation for a current employment agreement.  However, as many of you know, the survey data that is released this year reflects compensations that were reported in the calendar year 2021.  But, we’ve experienced inflation rates of around 10% since that time.  Can we assume the MGMA and other survey data represents FMV when we’ve seen extraordinary inflation across nearly all sectors, not just food, energy, and services?  According to data from Trading Economics, US wages increased 11% in May 2022 over the same month in 2021.
 
Should this be a factor in determining FMV physician compensation TODAY?