Compensation for medical directors and CMOs at staff-model health plans and in high-deductible health plans, as well as HMOs and PPOs, remains competitive when compared to what their counterparts at hospitals, physician practice groups, and in about 15 other categories get paid, according to Cejka Search.
For all physician executives in general, the average compensation was $288,000 in Cejka’s 2009 survey, a two-year increase of 11.6 percent (from $258,000). It is also 44 percent above the $200,000 median of 1999.
Chief medical officers reported a median annual salary of $324,750 and medical directors reported a median annual salary of $251,000. These amounts are in line with earnings of physician executives in the health insurance industry, where CMOs earn $316,500 and medical directors earn $250,000 annually.
A comparison of median compensation between physician executives working in the health insurance industry and those working for a single-specialty group shows mixed results. Medical directors working in a single specialty earned a greater salary ($340,000) than those working in health insurance, while CMOs working for a single-specialty group earned a lesser salary ($306,125) than those in health insurance.
Median compensation of CMOs 1999, 2007, and 2009
CMO’s time given to administration
Note: Compensation includes salary, bonuses, incentive payments, research stipends, honoraria, and distribution of profits. The data also include the total compensation for both administrative duties and the clinical practice of medicine.