For the first time in several years, physician productivity and compensation moved in opposite directions in 2025, highlighting the strain on the U.S. physician workforce, according to new data from the Medical Group Management Association (MGMA). The 2026 Provider Compensation and Productivity Data report, based on 2025 data from more than 245,900 physicians and advanced practice providers, found that compensation growth remained modest and trailed inflation. With inflation rising 2.7% during the year, only surgical specialists managed to keep pace with the cost of living, while primary care and nonsurgical specialists fell behind.

Compensation vs. Inflation

The report details specific compensation increases across physician categories, showing a clear disparity with inflation rates. Primary care physician compensation rose 2.23%, while surgical specialist compensation increased 2.90%. Nonsurgical specialist compensation grew by 1.79%. Over a five-year period, the Consumer Price Index rose 16.37%, outpacing the cumulative pay gains for primary care physicians (15.04%) and nonsurgical specialists (11.06%). Surgical specialists saw a 16.33% increase over the same five years, roughly matching inflation.

Productivity and Workforce Challenges

Productivity metrics declined even as pay increased, particularly among nonsurgical specialists, whose total patient visits fell 15.67% in a single year. The data suggests that physicians are scarce, compelling medical groups to offer higher compensation regardless of output. The Association of American Medical Colleges projects a U.S. physician shortage of up to 86,000 by 2036. Additionally, one in three medical groups lost a physician to burnout in the past year, up from roughly one in four in late 2024.

Key Compensation and Productivity Metrics

Strategic Shifts in Staffing and Pay

In response to these pressures, 48% of medical groups added Advanced Practice Providers (APPs) relative to physicians over the past year to maintain patient access. APP compensation outpaced physician gains over five years in every grouping. Furthermore, hybrid compensation models—blending base salary with quality and other incentives—now account for more than 75% of reported structures, replacing pure salary and productivity models. Guaranteed starting pay for newly hired physicians eased from recent highs, most sharply for nonsurgical specialists at -6.77%, though levels remain above those seen in 2021.

Future Outlook

The disconnect between pay and productivity is expected to deepen in 2026 due to Medicare's new productivity "efficiency adjustment," which took effect on January 1, 2026. This adjustment reduces workload scores for many non-time-based procedures, impacting hard-to-recruit specialties such as urology, interventional cardiology, and diagnostic radiology. MGMA's acting CEO, Akash Madiah, noted that compensation and staffing decisions made today are critical for determining whether practices can meet demand and remain viable in a pressured system.

The United States and Iran remain engaged in active negotiations, with US Vice President Vance stating that a deal will definitively be reached before the midterm elections. While acknowledging uncertainty around the exact timeline, Vance indicated the agreement could arrive within a week or potentially take several months, but expressed confidence that a resolution would be secured ahead of the midterms. The developments were reported by Fox News.

Key Developments

Trump had previously confirmed that talks with Iran are ongoing, marking a notable diplomatic development between the two nations. Vance's latest statement adds a clearer sense of direction to those negotiations, establishing a political deadline tied to the midterm elections.

The following table summarizes the key details available from both announcements:

No further specifics — including the venue, mediating parties, agenda, or format of the discussions — were disclosed in the available data. The statements collectively establish that active communication between the two sides is underway and that the US administration is working toward a concrete agreement within a defined political timeframe.