Provider compensation continued to rise in 2025, but a new survey suggests health systems may be nearing the limits of what they can sustainably support.
According to the “AMGA 2026 Medical Group Compensation and Productivity Survey,” overall clinical compensation increased 4.3% in 2025. The survey includes data from 451 medical groups and health systems representing nearly 188,000 providers across more than 190 specialties.
The increase comes as reimbursement growth remains largely stagnant, creating a widening gap between provider pay and collections.
“Over the past several years, provider compensation has increased, but approximately half of the increases have been supported by ongoing growth in wRVU production,” Fred Horton, president of American Medical Group Association Consulting, said in a June 24 news release shared with Becker’s. “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 FTE and seeking alternative work arrangements in response to increased workloads.”
Primary care compensation increased 3.7% in 2025, while medical specialties saw a 4.3% increase and surgical specialties experienced a 3.2% increase. Compensation for radiology, anesthesiology and pathology providers grew 5.7%, the highest increase among specialty categories tracked by the survey.
Provider productivity also continued to climb: Work relative value units increased 2.4% overall, and patient visit volumes rose 2%.
AMGA researchers said the data suggest roughly half of compensation growth is being funded through higher provider productivity rather than improved reimbursement rates.
However, there are signs that approach may be reaching its limits.
“As productivity rises, providers are already adjusting their FTE and seeking alternative work arrangements in response to increased workloads,” Mr. Horton said.
The survey also identified a notable shift in primary care. While patient visits for primary care physicians fell 2.2% in 2025, work relative value units increased 2%, and wRVUs per visit rose from 1.86 to 1.94. The findings suggest primary care physicians are managing increasingly complex patients during each encounter, according to AMGA.
“The increase in wRVUs per visit for primary care physicians highlights the need for a strong team-based approach to access,” Matthew Wells, PhD, senior director at AMGA Consulting, said. “Medical groups need to rethink how advanced practice clinicians and other providers are deployed within their care models.”
Advanced practice clinician compensation also continued to rise, increasing 4.1% overall as organizations expanded their use of nurse practitioners and physician assistants. Productivity among APCs increased 3%.
The report comes as health systems face several long-term financial and workforce pressures, including potential Medicare and Medicaid funding reductions, ongoing labor shortages and growing expectations around work-life balance.
The findings raise a key question for health system leaders: If reimbursement remains flat, how much longer can organizations rely on productivity gains to fund rising provider compensation?
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