Most of the physicians paid under title 5 were with the Departments of Health and Human Services (HHS) and Defense (DOD). Physicians paid under title 38 were with the Department of Veterans Affairs (VA). Objectives, Scope, and Methodology

As we agreed with you, our principal objectives were to (1) compare amounts paid to federal physicians under title 5 with amounts paid to physicians under other sections of the U.S. Code and with physicians in the private sector; (2) determine what other types of pay and benefits federally employed physicians receive; and (3) identify ongoing efforts by federal agencies that affect or have the potential to affect physicians’ pay. Therefore, we did not attempt to make conclusions or recommendations on the sufficiency, size, or continued need for PCAs under title 5. Federal Physicians’ Pay Comparisons

When measured by the average, physicians’ pay for HHS physicians who did not receive title 38 special pay was less than physicians’ pay of HHS and VA physicians who received special payments under title 38. Average basic pay for physicians paid under title 37 was $43,110 for physicians in the military and $54,510 for Commissioned Corps physicians. Large differences in average special pay to physicians—over $20,000—existed between HHS physicians who received PCAs ($15,760) and VA physicians and HHS physicians who received special pay under title 38 ($39,585 and $38,950, respectively). The average PCA of HHS physicians ($15,760) was also lower than the average special pay received by military and Commissioned Corps physicians, $35,190 and $43,260, respectively. In selected medical specialties in which large numbers of federal and private physicians practiced (general surgery, internal medicine, psychiatry, and family practice), our comparison of pay information from studies of private sector physicians’ pay and the pay of federal physicians who were paid under titles 37 and 38 showed that private sector physicians were generally paid more. As of May 1997, HHS was the only agency to have used this expanded authority to provide special pay to its physicians. The average pay for military and Commissioned Corps physicians was 39 and 24 percent less than the average for VA physicians. The average pay for HHS physicians was about the same as the average for Commissioned Corps physicians and about 20 percent more than the average for physicians in the military. Title 5 Physicians Receiving Title 38 Pay

HHS, DOD, and the Department of Justice, which pay physicians under title 5, were authorized, under a delegation of title 38 pay authority from OPM, to use the same categories of special payments to physicians described in the previous section in paying their physicians. On the basis of our preliminary work, we agreed to obtain physicians’ pay and benefit information for full-time federal physicians paid under title 5, most of whom were with HHS or DOD; physicians with the Public Health Service’s Commissioned Corps or on military duty and paid under title 37; physicians with VA and paid under title 38; and title 5 physicians with HHS who received special payments under title 38. The military service pay centers for the Army and Air Force provided us with total amounts of basic pay, special pay for physicians, incentive pay, and allowances.
Why GAO Did This Study

Pursuant to a congressional request, GAO provided information on pay and benefits of physicians employed by the federal government and in the private sector, to be used in considering reauthorization of the Federal Physicians Comparability Allowance Act (5 U.S.C. 5948). GAO did not attempt to make conclusions or recommendations on the sufficiency, size, or continued need for physician comparability allowances (PCA).

What GAO Found

GAO noted that: (1) the average annual pay for Department of Health and Human Services (HHS) physicians paid under title 5 was: (a) 17 percent less than the average for HHS physicians who received special pay under title 38; (b) 21 percent less than the average for the Department of Veterans Affairs (VA) physicians paid under title 38; (c) 4 percent greater than the average for Commissioned Corps physicians; and (d) 23 percent greater than the average for physicians in the military; (2) the average pay for title 5 HHS physicians was $101,660; (3) for HHS physicians who received PCAs, average pay was $104,730 compared with $79,485 for those who did not receive a PCA or special pay under title 38; (4) the average pay for Department of Defense (DOD) physicians paid under title 5 was $86,760; (5) for DOD physicians receiving a PCA, average pay was 89,710; (6) for VA and HHS physicians who received special pay under title 38, average pay was $128,540 and $122,555, respectively; (7) average pay for physicians in the military (Army and Air Force) and the Commissioned Corps, both of whom were paid under title 37, was $78,250 and $97,770, respectively; (8) in general, physicians paid under titles 37 and 38 were eligible for and received more types and higher amounts of special pay than HHS and DOD physicians receiving PCAs under title 5; (9) the average PCA for HHS physicians was $15,760 and the average PCA for DOD physicians paid under title 5 was $12,505; (10) average special pay amounts for VA and HHS physicians receiving title 38 special pay were $39,585 and $38,950, respectively; (11) average special pay amounts for physicians in the military and the Commissioned Corps were $35,190 and $43,260, respectively; (12) for selected medical specialties, GAO comparisons of pay information from studies of private sector physicians' pay with the pay of federal physicians who were paid under titles 37 and 38 showed that private sector physicians were generally paid more; (13) in addition to basic pay and physicians' special pay, federal and private sector physicians were eligible for employer-provided nonwage compensation; (14) regarding ongoing efforts that affect or have the potential to affect physicians' pay, GAO identified two recent initiatives; (15) since November 1993, the Office of Personnel Management (OPM) has delegated authority to HHS, DOD, and the Department of Justice allowing them to provide title 38 special pay to their physicians; (16) as of May 1997, HHS was the only agency to have used this authority; and (17) VA is currently exploring the feasibility and appropriateness of linking physicians' pay with performance.