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Physician Supply and Demand: Projections to 2020

 

Printer-friendly Physician Supply & Demand Report
Background
Physician Supply Model
Current Physician Workforce
New Entrants and Choice of Medical Specialty
Separations from the Physician Workforce
Trends in Physician Productivity
Physician Supply Projections
Physician Requirements Model
Growth and Aging of the Population
Medical Insurance Trends
Economic Factors
Other Potential Determinants of Demand for Physicians
Physician Requirements Projections
Assessing the Adequacy of Current and Future Supply
Summary

References

 

Trends in Physician Productivity

Trends in physician productivity are important to consider when projecting supply of physician services. If physicians are more (or less) productive in future years, then more (or less) services can be provided with any given number of active physicians. Measures of physician productivity in the literature include the following:

  • Hours spent providing patient care. Projected changes over time in average hours worked are incorporated into the PSM. Our analysis of AMA’s 1998 Socioeconomic Monitoring System (SMS) file finds that female physicians tend to work approximately 15 percent less time in patient care than do their male counterparts after controlling for age, specialty, and IMG status. Physicians over age 65 and under age 36 work fewer hours per year than their middle-aged colleagues, and over time average hours in direct patient care for these two groups has been declining (Exhibit 5). Part of the decline for the younger group reflects a growing proportion of women in the workforce.
  • Number of patients seen. Changes in the use of non-physician clinicians (NPC) and other health workers, technological advances, epidemiological trends, amount of time spent with patients per visit, and changes in the healthcare operating environment could all affect the average number of patients seen per physician during a given period of time. AMA publications show that the average number of patient visits declined during the 1990s (Exhibit 6) due mainly to a decline in hospital round visits (Exhibit 7), with office visits per physician remaining relatively constant (Exhibit 8). Unfortunately, these statistics are no longer collected by AMA.
  • Resource-Based Relative Value Scale. A set of codes developed by the Center for Medicare and Medicaid Services (CMS), the Resource-Based Relative Value Scale (RBRVS), helps determine the Medicare fee schedule. (Many private insurers also use a form of the RBRVS). The RBRVS has three cost components, one of which is the Relative Value Unit (RVU) that measures physician work as a function of both the time and skill necessary to provide a particular service. More complex and time consuming services have higher RVUs. Data from the Medical Group Management Association (MGMA) cost survey suggest that between 1998 and 2002 the median annual work RVUs per physician were either constant or possibly increasing slightly (Exhibit 9). For example, during this period median work RVUs per physician in multi-specialty practices increased from 5,368 to 5,489 (about 0.6 percent per year). For multi-specialty, hospital-owned practices, the annual growth rate over this four-year period was approximately 7 percent, while for practices not owned by hospitals, the annual growth rate was approximately -0.5 percent. The number of support staff per FTE physician has also increased (Exhibit 10). Between 1996 and 2002, the number of support staff per FTE physician in multi-specialty practices increased 1.4 percent annually. The annual growth rate for family practice groups over this six-year period was 1.2 percent. To capture these trends in greater physician productivity, for our sensitivity analysis, we project a physician supply scenario under the assumption that productivity will increase by 1 percent annually. [6]

Exhibit 5. Trends in Annual Hours Worked

Exhibit 5 Trends in Annual Hours Worked [D]

Source: AMA Physician Socioeconomic Statistics, various years; 2002 estimates from BHPr.

Exhibit 6. Average Total Visits per Week

Exhibit 6 Average Total Visits per Week [D]
Source: AMA Physician Socioeconomic Statistics, various years.

Exhibit 7. Average Hospital Round Visits per Week

Exhibit 7 Average Hospital Round Visits per Week [D]

Source: AMA Physician Socioeconomic Statistics, various years.

Exhibit 8. Average Office Visits per Week

Exhibit 8 [D]

Source: AMA Physician Socioeconomic Statistics, various years.


Exhibit 9. Physician Work RVUs per FTE Physician

Exhibit 9 [D]

Source: MGMA Cost Survey, various years.

Exhibit 10. Total Support Staff per FTE Physician

Exhibit 10. Total Support Staff per FTE Physician [D]

Source: MGMA Cost Survey, various years.