Physician Assistant Compensation Averages Over $110K Annually

April 29, 2019 - Average physician assistant compensation in 2018 reached over $100,000, according to the latest statistical report of the profession from the National Commission on Certification of Physician Assistants (NCCPA).

The sixth consecutive Statistical Report of Certified Physician Assistants shows that the average total income of certified physician assistants was $110,567 in 2018, and the median salary was $115,000. The average salary of a certified physician assistant increased by 15.7 percent in the last six years, the analysis of over 117,200 physician assistants finds.

The report also finds that:

• Physician assistant workforce increased 37.2 percent over five years, reaching 131,152 total certified physician assistants by the end of 2018
• Certified physician assistants worked an average of 40.37 hours and saw an average of 73 patients per week
• Certified physician assistants collectively saw 9.1 million patients per week
• 22.8 percent of certified physician assistants can speak with patients in another language
• More physician assistants worked in a hospital setting (40.5 percent) versus an office-based private practice (39.5 percent) in 2018 for the first time in six years

“When we began publishing the Statistical Report of Certified PAs in 2013 there were just over 95,500 Certified PAs in practice,” Dawn Morton-Rias NCCPA president and CEO, states in a press release.

“As of 2018, there are 131,000 certified PAs,” she continues. “These professionals have completed a comprehensive education and clinical training process for entry to the profession and maintain high standards of clinical knowledge and skills throughout their careers, making them uniquely positioned to serve in this moment and well into the future.”

The report underscores the growing role of physician assistants in the healthcare industry. Industry leaders are adopting new payment and care delivery models to shift the industry from volume to value. Value-based reimbursement and care delivery models emphasize team-based care, which includes physician and non-physician providers coordinating care for patients.

Physician assistants, nurse practitioners, and other advanced practice providers play a major role in delivering high-value care, especially with new data from UnitedHealth Group showing that 13 percent of individuals reside in an area experiencing a primary care physician shortage.

Advanced practice providers can fill in the gaps left by the physician shortage, which the Association of American Medical College (AAMC) projects to reach up to nearly 122,000 physicians by 2032.

A 2018 study published in the American Journal of Medicine shows that physician assistants and nurse practitioners can deliver comparable care to patients with chronic conditions as physicians. Another recent analysis from the Medical Group Management Association (MGMA) also finds that practices employing more physician assistants and other non-physician providers have higher revenue and productivity.

Despite the benefits of having access to physician assistants and other advanced practice providers, the providers have struggled to practice at the top of their licensure.

State laws limit how physician assistants and other non-physician providers practice medicine. Laws vary by state and can range from no requirements at all to collaborative or consultative arrangements with physicians and physician supervisory requirements.

New research shows relaxing the scope of practice laws for physician assistants can significantly increase provider productivity. The 2018 report finds allowing advanced practice providers to complete more clinical tasks on their own has the potential to free up physician time and lower costs.

“Achieving productivity gains is one way to reduce cost pressures throughout the healthcare system and, ultimately, in government budgets,” states the Hamilton Project, an economic policy center and author of the research report. “Productivity can be increased by using different combinations of labor and capital, as well as by using lower-cost sources of labor to achieve the same or better outcomes. Indeed, relatively high payment rates for physicians in the United States versus other developed countries make this a particularly appealing opportunity.”

“The lack of normal competitive forces in the healthcare sector, however, serves as a key barrier to achieving these efficiency gains,” the center continues. “Currently, there are strong anticompetitive barriers to making more use of advanced practice providers in the healthcare sector.”

As the industry continues to adopt value-based reimbursement and care delivery, the role of physician assistants and other advanced practice providers will grow. Provider organizations will rely on the providers to complete additional clinical tasks, complement physician services, and more.

With demand for the providers expected to increase, physician assistants should expect to see their compensation rates rise.