Medicare's proposed 5.1 percent decrease in payment, coupled with the continuing rise in health care costs, is a challenge that groups will need to address. Insurers should expect Compensation formulas to become more complex as medical groups try to create incentives for cost control and quality components.

The following specialists saw significant compensation increases: primary care physicians, cardiologists, dermatologists, and noninterventional radiologists.

Physician compensation and work RVUs, 2005–2006
Source: American Medical Group Association. 2006 Medical Group Compensation & Financial Survey