Compensation Inequity and Decline in Patient Care Exacerbate Physician Shortage

Physician shortages are reshaping the conversation around compensation. Nearly 1 in 4 physicians is 65 years or older, with younger physicians also questioning long-term career paths, according to data from the Association of American Medical Colleges.¹

Jessica A. Minesinger, CMOM, CMPE, FACMPE, BBCC, president and CEO of Surgical Compensation & Consulting and a Medical Group Management Association (MGMA) consultant, noted during her session at the MGMA Leaders Conference 2025 that 59% of physicians in Doximity and Curative’s Physician Compensation Report 2024 were considering retiring early, leaving medicine, or changing jobs. Among women, that figure reached 70%.²

“These shortages are translating directly into burnout, turnover, and patient access issues,” Minesinger said.

Most of the physicians surveyed stated that patients have been negatively affected by longer wait times (87%), especially in primary care and rural areas; diminished access to care (75%); and worse health care disparities (75%). Frustration is pushing physicians to the brink, with the report noting that 4 out of 5 physicians already feel the impact of shortages.

Compensation as Culture

Minesinger emphasized that pay is rarely just about the dollar figure. Instead, dissatisfaction often stems from a lack of transparency and clarity. For example, physicians offered contracts based on productivity thresholds frequently face uncertainty when targets are unattainable due to staffing shortages or scheduling barriers.

“Being as transparent as you can possibly be around pay is going to benefit you in the long run,” she said.

And although overall compensation is rising, satisfaction lags. Approximately 60% of physicians say they are unsatisfied with their compensation, and many lack access to the benchmarking data that administrators use to set pay.

Minesinger framed compensation as a reflection of organizational culture. “Compensation reflects workplace culture. That’s just the bottom line,” she said.

Tools for Redesign

Minesinger urged organizations to simplify pay models and align them with physician motivations to rebuild trust. She highlighted 2 key frameworks, as follows:

SWOT Analysis: A practical way to identify strengths, weaknesses, opportunities, and threats in existing plans, offering leaders a road map for change.

SCARF Model: Rooted in neuroscience, this model focuses on status, certainty, autonomy, relatedness, and fairness, all domains that drive engagement when properly addressed.

Minesinger said these tools can help administrators develop strategies to balance compensation with workload management, increase administrative efficiency, and reduce burnout.

Recruitment, Retention, and Equity

Competition for talent is fierce, with new physicians often offered lucrative starting bonuses. Minesinger cautioned against creating wage disparities by hiring new doctors at higher rates than seasoned colleagues. Retention strategies, such as periodic check-ins, retention bonuses, and transparent pay discussions, can be more cost-effective than constant recruitment, she said.

The gender pay gap also demands attention. Minesinger noted that approximately 75% of women physicians believe they are not paid equitably. Without maternity leave provisions or retail value unit proration during leave, female physicians often face compounded disadvantages.

Looking Forward

Minesinger encouraged session attendees to look at compensation plans not only as financial arrangements, but as cultural commitments. Flexibility, transparency, and regular review were recurring themes.

“Physician compensation plans are a direct reflection of your organization’s culture, your commitment to recruitment and retention, and the value you place on your physicians,” she said.

As shortages deepen, she argued, practices that adopt a proactive, clear, and inclusive approach to pay will have the best chance of retaining physicians and ensuring patients can access care.

For more information, visit: https://bit.ly/3J9mwGk

Jessica A. Minesinger, CMOM, CMPE, FACMPE, BBCC, is president and CEO of Surgical Compensation & Consulting.

REFERENCES

1. U.S. physician workforce data dashboard. AAMC. Accessed October 6, 2025. https://www.aamc.org/data-reports/data/2024-key-findings-and-definitions

2. Physician Compensation Report 2024. Doximity. Accessed October 6, 2025. https://www.doximity.com/reports/physician-compensation-report/2024