How medical groups are building better total rewards packages for physicians

Shifts in physician compensation models get lots of attention, but what's included in the broader total rewards package is also evolving. An April 22, 2025, MGMA Stat poll found that 25% of medical groups added or updated benefits for physicians in the past year, while 70% did not and 5% were unsure. The poll had 320 applicable responses. 

These updates span work-life balance, financial incentives beyond base pay, professional development, and wellness benefits, reflecting a recalibration toward more personalized, performance-linked, and lifestyle-conscious total rewards: 

Financial enhancements and incentives 

Many organizations are prioritizing non-salary forms of financial support that historically been considered part of compensation but now are under the umbrella of “total rewards.” The most common additions or expansions reported include: 

• Enhanced sign-on and retention bonuses, often paired with relocation allowances and cash balance retirement plans. 
• Profit-sharing, 401(k) enhancements, and loan forgiveness, especially in high-demand specialties. Some employers also work to connect new hires with financial coaches and organizations that can help them refinance student loans. 
• A few practices even introduced equity models tiered by years of service, and revenue-sharing arrangements (e.g., physicians retaining a significant share of G0545 revenue). 

Time off and work flexibility 

Improvements in paid leave and schedule flexibility have become standard: 

• Increased PTO, holidays, and sick days. 
• Expanded CME days and paid time off for continuing education. 
• Multiple groups introduced of four-day workweeks, flexible scheduling, or administrative time. 
• Greater inclusion of maternity leave provisions in physician contracts, and a growing culture shift toward paternity leave among male physicians.
• Part-time/phased retirement options (including job sharing and reduced clinical hours) for late-career physicians to allow them to scale back while staying engaged. 
• Increased use of hospitalists and limited hospital call used as a recruiting tools. 

One group also accelerated insurance eligibility for new hires, eliminating the waiting period entirely — down from the previous three to six months. 

Professional and wellness support 

Organizations are also shifting toward long-term well-being and work-life integration: 

• Ambient AI tools for clinical documentation implemented across many physician groups. 
• Improved health insurance, CME reimbursement, coverage for healthcare society dues, and expanded medical benefits. 
• Some organizations added enhanced HRAs tied to healthy lifestyle rewards and access to free/discounted services. 

Other physician benefit package considerations 

Travel-free CME and shifts in MOC 

While many physicians have access to online CME that reduce the need for employer-covered travel, expenses tied to maintenance of certification (MOC) has been growing over the past decade. However, after physician pushback, the ABIM recently removed the requirement to earn MOC points every two years, reducing the burden. 

Malpractice costs and tail coverage 

Professional liability insurance coverage (malpractice coverage) is a necessity for all practicing doctors and typically not a factor in recruitment or retention, but those costs are not fixed. Regular MGMA polling and data signal increased expenses for practices in this area, as nearly seven in 10 (68%) of medical group practices reported their doctors’ malpractice premiums increased from 2022 to 2024. 

However, tail coverage can play a role in retention. Practices can stipulate that physicians who leave within a three-year period, for example, must cover their own malpractice “tail” (coverage for claims after their departure), while offering to cover it for those who stay longer. Given that malpractice premiums can be tens of thousands of dollars annually, the value of this benefit is worth emphasizing to physicians. 

Nonqualified retirement plans 

More employers are looking at offering non-qualified deferred compensation or supplemental retirement plans for high earners who exceed standard 401(k) contribution limits. These plans allow physicians to defer more income than typically allowed, reducing the current taxable income and growing tax-deferred savings. They often include vesting schedules or payout rules that encourage staying longer to fully access the benefit while building wealth. 

Share your story 

Is your organization seeing success in recruitment and retention in an area of physician total rewards not mentioned in this article? Let us know at connection@mgma.com. 

Additional resources 

• Members enjoy exclusive access to multiple Physician Hiring Playbooks, including: 
  • MGMA Physician Recruitment Playbook 
  • MGMA Physician Employment Offer Playbook 
  • MGMA Physician Compensation and Benefits Playbook. 
• Help your physicians better understand the business of medicine and drive personal and organizational success with Physician Business Training.