Doctors on Salary: Physician Compensation Trends and Insights for 2024

July 02, 2024
A physician thoughtfully reviewing medical charts, symbolizing the blend of expertise and administrative duties in salaried doctor roles.

While physician earnings have seen a modest increase, a significant portion of doctors are expressing dissatisfaction with their compensation, highlighting the complexities within the healthcare pay structure. Medscape’s comprehensive Physician Salary Report for 2024 reveals that approximately half of physicians are not content with their current earnings, and nearly 40% are seeking additional income through medical side ventures. This in-depth survey, encompassing over 7,000 physicians across 29 specialties, provides critical insights into physician income, work hours, compensation satisfaction, and the evolving challenges within the medical profession, particularly for Doctors On Salary and other compensation models.

See last year’s report

This year’s report delves into the persistent impact of the physician shortage on the dynamics of supply and demand, influencing earnings and exploring the progress in addressing gender pay disparities within the field. For doctors considering their career paths and compensation expectations, understanding these trends is crucial.

The Steady Climb of Average Physician Income

The ongoing physician shortage, exacerbated by the pandemic, continues to be a primary driver for the increase in physician salaries. The latest report indicates that the average physician income across all specialties reached $363,000, a rise from $352,000 in the previous year. This upward trajectory reflects the critical need for doctors and the competitive landscape for their services.

However, it’s important to note the income variations between primary care physicians and specialists. Primary care providers, often the cornerstone of healthcare systems, averaged $277,000 this year, marking a $12,000 increase from last year’s $265,000 average. Specialists, with their focused expertise, averaged a higher income of $394,000 in 2023, up from $382,000 in 2022. These figures underscore the different compensation scales within the medical field, impacting doctors on salary and those in private practice alike.

Year-over-year, physician compensation has increased by approximately 3%, building on a $24,000 increase over the past two years from $339,000 in 2021. Healthcare staffing experts anticipate this upward trend will persist as more physicians retire, reduce their working hours, or transition to flexible work arrangements like shift work and virtual care, further tightening the supply and potentially driving up salaries for doctors.

2024 Average Physician Earnings Overview

Physician Type	2024 Average Income
All Physicians	$363,000
Primary Care	$277,000
Specialists	$394,000

Consistent Leaders in High-Paying Specialties

The top-earning specialties in the Medscape survey remain consistent with previous years, highlighting the enduring demand and value placed on certain medical expertise. Orthopedics leads with an average income of $558,000, followed by plastic surgery at $536,000, and cardiology at $525,000. Urology ($515,000) and gastroenterology ($512,000) complete the list of the top five highest-paid specialties. These lucrative fields often involve complex procedures, high-risk patient care, and extensive training, justifying the higher compensation for doctors in these roles.

Top 5 Highest-Paying Medical Specialties

Conversely, the specialties with the lowest reported earnings include diabetes and endocrinology, pediatrics, infectious diseases, and public health and preventative medicine. These fields, while crucial for public health, often face systemic underfunding and reimbursement challenges, impacting the salaries of doctors dedicated to these areas.

Specialties Experiencing Notable Earnings Growth

Interestingly, several specialties have seen significant increases in earnings, indicating shifts in demand or valuation within the medical landscape. Physical medicine and rehabilitation experienced an 11% increase, neurology saw a 10% rise, and nephrology and allergy/immunology each reported a 9% increase in earnings. This is a notable turnaround from the previous year’s report, where these specialties had seen minimal growth or even salary declines. This positive shift could reflect a growing need for these services or adjustments in compensation structures to attract and retain specialists in these areas.

Specialties with Significant Pay Increases in 2023

On the other end of the spectrum, some high-earning specialties, such as orthopedics and plastic surgery, experienced a decrease in compensation in 2023, down by 3% and 13% respectively. This fluctuation suggests that even top-tier specialties are subject to market dynamics and changes in healthcare reimbursement models.

Persistent Gender Pay Gap Among Specialist Physicians

The report continues to highlight the persistent gender pay disparity within the medical profession. In 2023, male physicians earned approximately 29% more than their female counterparts, with an average compensation of $400,000 compared to $309,000 for women. This gap underscores the ongoing challenges in achieving pay equity within healthcare, particularly at the specialist level.

While female primary care physicians saw improved pay rates in 2023, narrowing the pay gap in primary care from 19% in 2022 to 17% last year, the disparity widened among specialists. Male specialists earned 31% more than female specialists this year, compared to a 27% difference in the previous year. This widening gap in specialist pay raises concerns about systemic factors contributing to gender-based income inequality in higher-earning medical fields.

2023 Earnings: Gender Comparison in Physician Compensation

The Financial Advantage of Self-Employed Physicians

The compensation structures in healthcare also reveal significant pay differences between self-employed physicians and those in traditional employment models, including doctors on salary.

In 2023, self-employed physicians, a category that includes locum tenens physicians, out-earned their employed counterparts. Self-employed doctors reported an average income of $391,000, compared to $353,000 for employed physicians. This difference highlights the potential financial benefits of entrepreneurial or independent practice models in medicine.

Pay Comparison: Employed vs. Self-Employed Physicians

The reported income for self-employed physicians has increased by $17,000 compared to the previous year’s earnings, further solidifying the financial appeal of this career path for many doctors.

What is locum tenens?

The Trend of Physicians Taking on Extra Work

An increasing number of physicians are supplementing their primary income by taking on extra work, reflecting both the financial pressures and the opportunities within the healthcare sector.

Percentage of Physicians Pursuing Extra Income Opportunities

Nearly 40% of physicians are engaged in supplemental work to increase their income, a figure consistent with the previous year’s report. Among these physicians, the majority pursue medical-related side gigs, such as moonlighting, which includes locum tenens assignments. Only a small fraction, about 6%, seek income from non-medical-related work, indicating a strong preference for leveraging their medical skills for additional earnings.

Boost Your Earnings: How locum tenens pay allows doctors to live their best lives

Regional Variations in Physician Compensation

Physician earnings also vary significantly by geographic region, influenced by factors such as cost of living, demand for medical services, and the concentration of healthcare facilities.

Physicians in the Midwest, specifically the West North Central region (North and South Dakota, Nebraska, Kansas, Minnesota, Iowa, and Missouri), reported the highest average salary at $404,000. The West South Central region (Texas, Oklahoma, Arkansas, and Louisiana) followed with an average of $375,000, and the East North Central region (Wisconsin, Illinois, Michigan, Indiana, and Ohio) reported an average of $367,000.

Top-Earning Regions for Physicians in the United States

These survey results suggest that rural areas often present greater earning potential for physicians due to lower doctor density and less competition, driving up compensation. Conversely, more competitive urban areas like California and New York City may offer lower relative income due to higher physician concentration and increased cost of living.

Considering Relocation? Top 10 highest-paying states for physicians

Physician Satisfaction with Pay: A Mixed Perspective

Overall, approximately half (51%) of the physicians surveyed expressed dissatisfaction with their current income. An additional 10% believe that most physicians are generally underpaid, reflecting a broader sentiment about physician valuation in the healthcare system.

However, views on pay satisfaction differ considerably across specialties. Over 60% of physicians in public health and preventative medicine, dermatology, psychiatry, oncology, and neurology feel adequately compensated. In contrast, less than 40% of specialists in plastic surgery, urology, ophthalmology, diabetes and endocrinology, and infectious diseases are satisfied with their pay.

Interestingly, the specialties reporting higher satisfaction with pay tend to be on the lower end of the earnings spectrum, while those expressing dissatisfaction are often among the top earners. This paradox may be attributed to factors beyond just income level, such as workload, administrative burden, and perceived value relative to effort.

Furthermore, broader economic factors like inflation likely influence physicians’ perceptions of their compensation. Research from Bankrate in late 2023 indicated that 60% of all U.S. employees feel their incomes are not keeping pace with rising living costs, even for those who have received pay increases. This widespread sentiment underscores the complex interplay between income, cost of living, and overall financial satisfaction.

If you are looking to enhance your earnings, exploring locum tenens opportunities could be a beneficial step. Discover current job opportunities or contact us at 954.343.3050 for more information.

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About the Author

Megan Lee

Megan Lee is a writer, editor, and SEO specialist dedicated to creating content that resonates with audiences. Based in the Midwest, Megan enjoys exploring her home region, attending themed events, cycling, and preparing Asian cuisine in her free time.

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