Comparison of Navy and Private-Sector Physicians' Total Compensation, by Medical Specialty (Supplement to Annotated Briefing on Provider Satisfaction)

Abstract

Public reporting burden for this collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources gathering and maintaining the data needed and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington, VA 22302-4302, and ABSTRACT (Maximum 200 words)(U) The Navy Surgeon General has asked CNA to evaluate physicians' job satisfaction and retention within the existing climate to determine if major issues exist. The scope of the study was expanded to include a comparative analysis of compensation for Navy physicians continuing a military career versus leaving for a private-sector track. We find that a substantial current compensation gap exists between military and private-sector physicians, particularly at the end of the 7-year career point, and the disparity in total compensation varies widely by medical specialty. Our finds show, however, that as Navy physicians accrue more military service, it becomes more lucrative for them to complete 20 years, retire, and then pursue a private career. This information memorandum documents the results of these compensation comparisons.14. SUBJECT TERMS Benefits, civilian personnel, compensation, incentive contracts, job satisfaction, medical personnel, naval personnel, officer personnel, personnel retention, physicians, salaries, surveys EXECUTIVE SUMMARY Introduction and FindingsCongress authorizes the Department of Defense to offer financial incentives to uniformed physicians to attract and retain the desired force structure. A policy board annually reviews physician manning, civilian income data, and military health system requirements to determine the Multi-year Special Pay (MSP) and Incentive Special Pay (ISP) plan rates that will be offered to uniformed physicians. The Navy Surgeon General has asked the Center for Naval Analyses (CNA) to evaluate physicians' job satisfaction and retention within the existing climate to determine if major issues exist. The scope of the study was expanded to include a comparative analysis of compensation for Navy physicians continuing a military career versus leaving for a private-sector track.The "compensation package" offered to both military and private-sector physicians comprises many elements. It is vital that policy-makers and individual military physicians understand all the components of compensation (salary, incentive pays, pension, vacations, health care, and other benefits) to make a prudent comparison of the military and the private sector. We find that a substantial current compensation gap exists between military and private-sector physicians, particularly at the end of the 7-year career point, and the disparity in total compensation varies widely by medical specialty. O...

Health Professions' Retention-Accession Incentives Study Report to Congress (Phases II & III: Adequacy of Special Pays and Bonuses for Medical Officers and Selected Other Health Care Professionals

“…The DMDC personnel tapes combine diagnostic and therapeutic radiologists into a single specialty, so for the remainder of this study we will analyze 23, versus 24, physician specialties. 4. Also in phase I, we calculated the cash compensation of Advance Practice Nurses (APNs), which included family nurse practitioners, nurse midwives, and pediatric nurse practitioners.…”

“…The first phase was a comparative analysis of compensation between uniformed and private-sector health care professionals at logical military career junctures [2,3,4]. This analysis was an essential first step because we needed to understand whether a militarycivilian pay gaps exists, how large it is, and at what career junctures to evaluate the effect of pay on retention during the second phase of this study.…”

“…To answer this question, we first conducted a comparative analysis of compensation of 24 uniformed and private-sector salaried physician specialties at logical military career junctures [2,3,4]. We found that a uniformed-civilian pay gap exists at every career juncture for all specialties considered.…”

Provider Satisfaction Study

“…Although analyzing total unobligated retention rates is a stronger tool than continuation rates when assessing military physician attrition behavior, the most preferred index to measure is "end of initial obligation" [62,[65][66][67][68][69]. In general terms, the end of the initial obligation represents a physician's first opportunity to leave the Navy.…”

“…Both the cross-sectional and present-value comparisons are presented for both median and 75th percentjle private-sector data in a separate CNA document (CIM D0002053.A1-Comparison of Navy and PrivateSector Physicians' Total Compensation, by Medical Specialty) [69]. Our compensation comparisons may reflect the low end of the physician income spectrum because they do not capture salary data from civilian physicians working in private practice.…”