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Welcome to an overview of the MGMA 2024 data set, presented by Jon Appino, founder of Contract Diagnostics. While this post provides a high-level look at critical trends and insights from the latest MGMA report, we are committed to diving much deeper into each category in the coming weeks. This series will offer valuable information for physicians and healthcare administrators, from quality bonuses to the impact of artificial intelligence. Stay tuned for detailed analyses and actionable advice in our upcoming posts. Jon covers everything from quality bonuses to the effects of artificial intelligence. Let’s explore the key takeaways from these eight insightful videos.

The Role of Artificial Intelligence

The MGMA 2024 data highlights the growing importance of artificial intelligence (AI) in healthcare. Around 80% of medical groups believe AI will become a significant and essential skill. AI is expected to streamline various tasks, from patient scheduling to billing. Physicians should stay informed about AI developments as they will likely influence their workflows and job roles in the future.

“80% of medical groups say AI in healthcare will be a significant and essential skill moving forward.”

Expenses and Productivity

Employers cite increasing expenses, but how does this compare to physician productivity? The MGMA data shows significant increases in costs for building, occupancy, furniture, and equipment. Despite these rising expenses, physician productivity has also increased, reflecting a 42% rise over the same period. Appropriate compensation increases ideally match this productivity.

“Physicians are doing more with more. Employers are having more expenses, but are physicians getting paid more?”

Utilization of Locum Tenens

The use of locum tenens is a critical area explored in the MGMA data. While 60% of employers plan to maintain their current use of locums, 24% hope to reduce this reliance. Locums are expensive and can impact a company’s bottom line. Physicians should consider negotiating for higher pay if their facility uses locums, as these positions typically command higher rates.

“If your facility is using locums, raise your hand. Ask for more money for your extra shifts.”

Understanding Quality Bonus Policies

Quality bonuses are becoming more common, but it’s essential to understand their specific policies. Are they the same for everyone, or are they individualized? How often are these bonuses assessed, and what happens if you join or leave mid-year? Knowing these details can significantly impact your compensation and job satisfaction.

“Do you get mutual agreement on what those metrics are? It’s important to know.”

Employer-Physician Partnerships

According to the MGMA data, 60% of employers converse with their physicians about compensation plans. However, the level of engagement can vary. Physicians should seek clarity on their role in these discussions and ensure they have a meaningful say in their compensation structures.

“Six out of ten employers say they converse with their physicians about their compensation plan.”

Regular Review and Simplification of Compensation Plans

Experts advise conducting regular reviews and updates of compensation plans. Key elements include simplifying the plans and ensuring transparency. Physicians should ensure their compensation plans are current, aligned with market standards, and easy to understand.

“Encourage your employers to review, simplify, and update your compensation plan to ensure it is clear, current, and aligned with market rates.”

Compensation Plan Transparency

Employers are increasingly focusing on fostering trust and transparency in compensation plans. Aligning physician incentives with corporate or hospital goals is crucial. Physicians should actively engage in these discussions to ensure their goals align with their employers, leading to mutually beneficial outcomes.

“Ask them, what are your strategic initiatives this year? What can I do as a physician to help you accomplish your goals?”

The Rise of Quality Bonuses

In 2016, only 26% of physicians received quality bonuses. By 2019, this figure had risen to 38%, and the latest 2024 MGMA data shows that 50% of physicians now receive these bonuses. However, at Contract Diagnostics, we see a slightly lower figure of 31% in the contracts we review. Understanding the metrics and nuances of these bonuses is crucial. Ensure you know how they’re tracked and what you need to meet these quality measures.

“26% in 2016, 38% in 2019, and now in 2024, 50%. We see 31%. But if you have it, make sure you understand the metrics.”

Conclusion

The MGMA 2024 data set provides valuable insights into physician compensation trends, the impact of AI, and the importance of transparent and fair compensation plans. While this post offers an overview, we are committed to delving deeper into each of these categories in the coming weeks. By staying informed and actively engaging in discussions about their compensation, physicians can ensure they receive fair pay and work under favorable conditions. Stay tuned for our detailed analyses and actionable advice. If you need assistance navigating these complexities, Contract Diagnostics is here to help.

For further assistance, feel free to contact us at Contract Diagnostics.

About the author

Jon Appino is the Founder and CEO of Contract Diagnostics. He has spent over a decade disrupting the contract review space. He has discussed thousands of contracts with physicians and understands the challenges and opportunities of understanding how your story matters in compensation discussions. He passionately advocates for physicians and believes they deserve to be compensated fairly. He also firmly believes in the power of data and technology to improve the healthcare system.

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