Aunt Masie gives lowdown on latest GP and NP pay rates

Our last MAS survey was in December 2022, and we have just completed another survey with our practices. At the time of writing, we are still completing the survey analysis, but we can provide some information that may be helpful with your recruitment.

In our most recent survey, we had 369 responses from 290 practices, most of which are GP-owned. In this survey, 64 per cent of practices engaged their locums and associates as contractors (down from 66 per cent previously) and 36 per cent as employees. Payment methods varied between contractors and employee GPs as follows.

For long-term contractor GPs:

• 42 per cent paid a sessional rate
• 37 per cent paid an hourly rate
• 21 per cent paid a percentage commission.

For long-term employee GPs:

• 53 per cent paid an hourly rate
• 32 per cent paid a salary
• 15 per cent paid a sessional rate.

The survey median rates (without considering experience) for long-term contractors and employees are shown below:

• The median hourly rate for contractor GPs was $135, with a median sessional rate for a 4-hour session of $532, and a median commission rate at 60 per cent.
• The median hourly rate for employee GPs was $117, with a median sessional rate of $480 for a 4-hour session.
• Long-term salaried employee GPs had a median full-time-equivalent (40 hours per week) salary of $208,000.
• We had 83 responses for employee nurse practitioners and the median hourly rate was $95.

Median contractor hourly rates were 15.4 per cent higher than employee rates, whereas sessional contractor rates were only 10.8 per cent higher than for employees. Given that contractors don’t receive employee benefits such as annual leave, statutory holidays, sick leave, or KiwiSaver employer contributions, and have more risk without protections provided under the Employment Relations Act, we would usually expect their rates to be 15 to 20 percent higher than employee rates. In addition, the median estimated value for payment of professional subscriptions and CME/professional development for employee GPs was $3000 per annum, and we would not expect contractors to be paid for any of these costs. The median estimated value of payments to NPs for these costs was $2500 per annum.

Most practices said they value experience over other factors when looking to pay a GP, and our most recent survey showed those with less experience are usually paid less than those with more experience, especially for employee GPs.

• The median hourly rate was $132 for GPs with less than 3 years’ experience, $133 for GPs with 3 to 5 years’ experience, and $135 for those with more than 5 years’ experience.
• The median sessional rate for a 4-hour session was $515 for GPs with less than 3 years’ experience, $542 for those with 3 to 5 years’ experience, and $540 for those with more than 5 years’ experience.

• The median hourly rate was $105 for GPs with less than 3 years’ experience, $118 for GPs with 3 to 5 years’ experience, and $120 for those with more than 5 years’ experience.
• For sessional rates we had no responses for GPs with less than 3 years’ experience but the median sessional rate for those with 3 to 5 years’ experience was $440, and $493 for those with more than 5 years’ experience.
• For full-time salaries, GPs with less than 3 years’ experience had a median salary of $194,250, those with 3 to 5 years’ experience had a median salary of $200,000, and those with more than 5 years’ experience had a median salary of $214,200.

When engaging a GP or NP, either as a contractor or employee, you should be clear on how much time you expect will be patient contact time and how much will be paid paperwork time. Our survey results showed:

• For GPs, the median patient contact time over a paid 4-hour session was 3 hours with an average of 3 hours 12 minutes. The median number of patients expected to be seen in a 4-hour session was 12 with the same average.
• For NPs the median patient contact time over a paid 4-hour session was the same as GPs at 3 hours with an average of 3 hours 14 minutes. The median number of patients expected to be seen in a 4-hour session was 12 with an average of 11.1.

These rates are a general guide only and there will be many other factors that influence GP and NP remuneration.

Shaun Phelan is a business advisory manager, MAS