Insights into Pulmonary Disease and Physician Compensation at CHEST 2024

Future of Physician Compensation in Pulmonary Disease

One of the first sessions to kick off CHEST 2024 in Boston looked at the future of physician compensation, which highlighted the consolidation of physician practices, unionization of physicians, the future role of Current Procedural Terminology codes and fee-for-service payment in value-based care, and the impacts of facility reimbursement, inflation, and market conditions.

Key Discussions in Pulmonary Disease

Session chair Scott Manaker, MD, a pulmonary critical care physician and the vice chair for Regulatory Affairs of the Department of Medicine at University of Pennsylvania Health System, discussed this critical junction of physician compensation amid shifting health care dynamics. Rising practice costs, inflation, and Medicare fee-for-service cuts over the past 4 years have reshaped the traditional practice model. Nearly 80% of physicians now work in employed settings, reducing their ability to negotiate contracts.

Shifting Reimbursement Models

As more beneficiaries move to Medicare Advantage plans, the effectiveness of existing reimbursement models is increasingly questioned, especially as compensation has steadily declined—by 3% in recent years, with another 2.8% cut expected in 2025. These pressures are driving changes such as growing physician unionization and the decline of independent practices, signaling significant shifts ahead for the healthcare industry. This transcript has been lightly edited for clarity.