Physicians are working harder for higher pay, driven by increased patient demand and a doctor shortage, while reimbursement rates remain stagnant and are expected to worsen, according to a new report. The American Medical Group Association’s AMGA 2026 Medical Group Compensation and Productivity Survey reveals a 4.3% rise in total clinic compensation this year. This compensation encompasses salaries for primary care physicians, medical specialists, surgeons, and advanced practice nurses and physician assistants.
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Physicians are working harder for higher pay, driven by increased patient demand and a doctor shortage, while reimbursement rates remain stagnant and are expected to worsen, a new report shows.
The American Medical Group Association’s AMGA 2026 Medical Group Compensation and Productivity Survey reveals a 4.3% rise in total clinic compensation this year. This compensation encompasses salaries for primary care physicians, medical specialists, surgeons, and advanced practice nurses and physician assistants.
“Overall total clinical compensation rose 4.3% in 2025, a sustained increase that reflects both growing patient demand and the intensifying competition for clinical talent,” AMGA said in its analysis. This data derives from over 450 medical groups and health systems, representing more than 190 medical specialties and nearly 190,000 healthcare providers.
For instance, the average pay for primary care doctors increased by 3.7%, with family physicians’ median compensation rising 3.7% to $342,411, up from $330,216 in 2025. Internal medicine doctors saw a 3.9% increase to $361,426, while pediatricians experienced a 3.5% rise to $305,435.
However, AMGA analysts noted that about half of the compensation growth is attributed to “increased provider output, not by gains in reimbursement.” In 2025, work relative value units (wRVUs) rose by 2.4%, and patient visit volume increased by 2.0%, which analysts regard as “signs of genuine demand expansion.”
Despite these increases, the physician shortage persists. The Association of American Medical Colleges projects that the United States will face a shortage of up to 86,000 physicians by 2036.
“Over the past several years, provider compensation has increased, but approximately half of the increases have been supported by ongoing growth in wRVU production,” said Fred Horton, AMGA Consulting president. “In a marketplace with stagnant reimbursement, this is necessary to afford the increases in total cash compensation, but it is not sustainable. At some point productivity will top out, and providers are already adjusting their (full-time equivalent employees) and seeking alternative work arrangements in response to increased workloads.”
The report emerges against a challenging policy backdrop, marked by anticipated federal spending cuts to Medicaid and the reduction of enhanced subsidies for individual coverage under the Affordable Care Act, also known as Obamacare.
The One Big Beautiful Bill Act, signed into law by President Trump last year, is expected to decrease federal Medicaid spending by approximately $1 trillion over a decade.
“The Medicaid piece is going to be very problematic going forward,” Horton said.
