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A Structured Compensation Plan Results in Equitable Physician Compensation: A Single-Center Analysis.

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Physician compensation at a large academic medical center showed pay equity across gender and race/ethnicity. However, full gender pay equality requires more women in leadership and high-paying specialties.

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Area of Science:

  • Medical Economics
  • Health Equity Research
  • Academic Medicine

Background:

  • Physician compensation models are complex and can perpetuate pay disparities.
  • Structured compensation plans aim for transparency and equity.
  • Assessing pay equity by gender and race/ethnicity is crucial in academic medical centers.

Purpose of the Study:

  • To evaluate adherence to predicted physician compensation based on gender and race/ethnicity.
  • To identify systematic deviations from compensation benchmarks in a structured model.
  • To assess pay equity at a large academic medical center.

Main Methods:

  • Analysis of compensation data for 2845 physicians at Mayo Clinic practices (2017).
  • Utilized a salary-only, structured compensation model with national benchmarks and pay steps.
  • Compared actual salaries with predicted pay (natural log of pay) and 95% confidence intervals.

Main Results:

  • Pay equity was affirmed in 96% of physicians (n=2730).
  • No significant interaction between gender/race/ethnicity and deviations in predicted pay.
  • Men were more represented in leadership roles (31.4% vs 15.9%) and highly compensated specialties (34.7% vs 20.5%).

Conclusions:

  • A structured compensation model successfully achieved overall pay equity.
  • Gender pay equality is contingent on increasing women's representation in leadership and high-paying specialties.
  • Further efforts are needed to address systemic factors influencing career progression and compensation.