Physician productivity is on the rise as doctors are facing heavier workloads, partly due to a shortage of medical care providers and an increase in patients following the end of the Covid-19 pandemic. According to a recent report from Vizient’s KaufmanHall consulting firm, net patient revenue per provider has increased by 4% to $404,116 in the second quarter of this year compared to $389,040 in the same period last year. Additionally, per-physician work relative value units (wRVUs), a key measure of physician productivity, rose by 6% during the same period.
The report highlights that physicians are working more, resulting in increased revenue and expenses. This trend is further exacerbated by a growing shortage of physicians, leading to doctors seeing more patients with complex healthcare needs. The Association of American Medical Colleges predicts a shortage of up to 86,000 physicians by 2036, emphasizing the urgent need to address this issue.
In response to the physician shortage, bipartisan efforts are being made to lift the cap on Medicare funding for residencies. The KaufmanHall report, based on data from over 200,000 employed physicians and advanced practice providers in various specialties, echoes earlier reports on physician compensation and productivity.
The American Medical Group Association’s 2025 Medical Group Compensation and Productivity Survey also revealed a 4.9% increase in compensation across the dataset, with work relative value units (wRVUs) increasing by 1.5%. This increase in productivity often correlates with a rise in patient visits, which grew by 2.3%.
As the healthcare industry reaches a tipping point, where compensation increases are being driven by productivity, there is a growing concern about the sustainability of this model. Mike Coppola, chief operating officer of AMGA Consulting, emphasized the need to find a balance that does not burden physicians with excessive workloads.
In conclusion, the healthcare sector is witnessing a significant shift in physician productivity and compensation, driven by a shortage of medical care providers and a surge in patient demand. Addressing these challenges will require collaborative efforts to ensure sustainable and effective healthcare delivery in the future.
