How much revenue do physician generate for hospitals?

2019 Physician Inpatient/Outpatient Revenue Survey was released recently. Merritt Hawkins (MH) conducts longitudinal surveys covering physician staffing issues including physician recruiting incentives, physician practice patterns, physician appointment wait times, and related topics. The 2019 survey was sent to 3,000 hospital chief financial officers (CFOs) and other financial managers nationwide.

The average annual revenue generated by all physician specialties for their affiliated hospitals over a period of 16 years has remained relatively constant at $1.5 million annually. Note that 50% hospitals in the survey had < 100 beds and only 20% had > 300 beds.

The average NET revenue generated by PCP’s was $2,133,273 and for specialists was $2,446,429. The survey does not tell us whether this accounted for downstream revenue or not. CV Surgery and Neurosurgery has the highest net revenue (>3.4M). The average annual net revenue generated by all 19 specialties in the 2019 survey is $2,378,727, a significant increase of 52% compared to 2016.

Although it is not clear what was included in compensation, MH also compared ‘salary’ to average revenue generated for physicians. CV Surgery had a ratio of 5.9 (generated revenue 5.9 times salary), Family Practice (FP) 8.87 and General Surgery 7.7. The FP number is surprising with the high revenue generated but I must assume this counts downstream revenue or referral partial revenue whereas for specialties it does not. But I could be wrong.