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Benchmarking physician productivity: The modern reality of physician compensation
Journal article   Peer reviewed

Benchmarking physician productivity: The modern reality of physician compensation

By Nicholas A. Davis and David E. Stein
Seminars in colon and rectal surgery, v 36(4), 101138
01 Dec 2025

Abstract

Benchmarking Clinical productivity Healthcare administration Healthcare economics Physician burnout Physician compensation Physician payment models Productivity-based compensation Quality incentives Relative value units (RVU)
Physician compensation models have evolved significantly over the past decades, with Relative Value Units (RVUs) becoming a central benchmark for productivity and remuneration. This paper explores the origins of RVUs, their application in physician compensation, and the consequences of productivity-driven pay structures. While RVU-based compensation can standardize productivity measurements, it can also incentivize volume over quality, potentially leading to physician burnout and unnecessary procedures. Alternative models from leading healthcare organizations such as Mayo Clinic, Cleveland Clinic, Geisinger, and Intermountain Health demonstrate more balanced approaches that prioritize quality outcomes and physician satisfaction. Finally, we propose a structured framework for designing physician compensation models that integrate productivity with meaningful quality incentives. Through thoughtful implementation, healthcare systems can align physician compensation with both organizational goals and patient-centered care.

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Surgery
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