Salaries of medical directors and associate/assistant medical directors have risen by more than 30 percent over the last 10 years, according to the 2007 Cejka Search/American College of Physician Executives Compensation Survey. In 1997, medical directors earned an average of $175,000; associate/assistant medical directors earned an average of $160,000. In 2007, salaries of medical directors averaged $240,000. Associate/assistant medical directors averaged $210,000 — a 37-percent and 31-percent increase, respectively.

Another way to look at it, however, is that the Consumer Price Index rose 28.5 percent during those years, so these valuable professionals are not much ahead of where they were 10 years ago in terms of buying power. It costs $225,000 to buy today what $175,000 bought 10 years ago.

When stratified by type of organization, medical directors employed by hospitals were paid the most, followed by single-specialty groups, multispecialty groups, health plans, and academic health centers. Associate/assistant medical directors of multispecialty groups were paid the most, followed by hospitals, academic health centers, and, at the bottom, health plans. Interestingly, associate/assistant medical directors employed by a health plan experienced a 1-percent drop in salary in 2007, but this is not statistically significant because of the low response rate.

*Higher pay for associates is an anomaly. The sample for this group was very small.

Source: 2007 Cejka Search/ACPE Compensation Survey

Managed Care’s Top Ten Articles of 2016

There’s a lot more going on in health care than mergers (Aetna-Humana, Anthem-Cigna) creating huge players. Hundreds of insurers operate in 50 different states. Self-insured employers, ACA public exchanges, Medicare Advantage, and Medicaid managed care plans crowd an increasingly complex market.

Major health care players are determined to make health information exchanges (HIEs) work. The push toward value-based payment alone almost guarantees that HIEs will be tweaked, poked, prodded, and overhauled until they deliver on their promise. The goal: straight talk from and among tech systems.

They bring a different mindset. They’re willing to work in teams and focus on the sort of evidence-based medicine that can guide health care’s transformation into a system based on value. One question: How well will this new generation of data-driven MDs deal with patients?

The surge of new MS treatments have been for the relapsing-remitting form of the disease. There’s hope for sufferers of a different form of MS. By homing in on CD20-positive B cells, ocrelizumab is able to knock them out and other aberrant B cells circulating in the bloodstream.

A flood of tests have insurers ramping up prior authorization and utilization review. Information overload is a problem. As doctors struggle to keep up, health plans need to get ahead of the development of the technology in order to successfully manage genetic testing appropriately.

Having the data is one thing. Knowing how to use it is another. Applying its computational power to the data, a company called RowdMap puts providers into high-, medium-, and low-value buckets compared with peers in their markets, using specific benchmarks to show why outliers differ from the norm.
Competition among manufacturers, industry consolidation, and capitalization on me-too drugs are cranking up generic and branded drug prices. This increase has compelled PBMs, health plan sponsors, and retail pharmacies to find novel ways to turn a profit, often at the expense of the consumer.
The development of recombinant DNA and other technologies has added a new dimension to care. These medications have revolutionized the treatment of rheumatoid arthritis and many of the other 80 or so autoimmune diseases. But they can be budget busters and have a tricky side effect profile.

Shelley Slade
Vogel, Slade & Goldstein

Hub programs have emerged as a profitable new line of business in the sales and distribution side of the pharmaceutical industry that has got more than its fair share of wheeling and dealing. But they spell trouble if they spark collusion, threaten patients, or waste federal dollars.

More companies are self-insuring—and it’s not just large employers that are striking out on their own. The percentage of employers who fully self-insure increased by 44% in 1999 to 63% in 2015. Self-insurance may give employers more control over benefit packages, and stop-loss protects them against uncapped liability.