After a period where physician salaries saw a dip, recent data indicates a rebound in doctor earnings in 2023. However, a significant portion of physicians still feel their compensation doesn’t adequately reflect their demanding work and extensive training. This article delves into the intricate landscape of physician salaries, exploring what the average doctor makes, the factors influencing income, and what these figures truly mean for those in the medical profession.
According to the 2024 Medscape Physician Compensation Report, physician compensation in the US experienced a roughly 3% increase in 2023. This marks a positive shift from the previous year’s 2.4% decrease. Primary care physicians saw a slightly higher rise at 4%, while specialists across over 29 specialties experienced a 3% growth. Despite this upward trend, Medscape highlights that these increases still lag behind the approximate 4% average wage growth for non-unionized US employees in 2023.
The 2024 Doximity Physician Compensation Report corroborates this positive trajectory, reporting a 6% increase in physician pay after the 2.4% decline the year before. However, Doximity points out a concerning trend: when adjusted for inflation, Medicare physician payments have diminished by 26% since 2001.
Doximity stated:
“While [the 2024] increase appears to be a step in the right direction, inflationary pressures continue to impact physicians’ real income.”
In 2022, physician income faced significant headwinds due to inflation, peaking at 9.1% that summer. This inflationary pressure likely eroded physician purchasing power and potentially decreased net worth, compounded by a challenging year for both stock and bond markets. However, 2023 saw inflation stabilize, and the S&P 500 made a strong recovery, gaining 24%, and continued to climb another 23% in 2024.
According to the MGMA 2024 Provider Compensation Data Report, both primary care and surgical specialist physician total compensation saw a roughly 4.4% increase from 2022 to 2023. Non-surgical specialist physician total compensation, however, experienced a more modest rise of 1.81% during the same period.
Despite the income increases, physician sentiment regarding compensation remains mixed. Medscape’s survey revealed that 61% of doctors believe physicians, in general, are underpaid, while 34% feel they are compensated fairly. Only 5% believe doctors are overpaid. Interestingly, when compared to a 2021 survey of the general American public, only 11% thought doctors were underpaid. When Medscape survey participants were asked about their own pay, 49% considered themselves underpaid.
One physician respondent articulated the sentiment:
“Do I feel I am paid well? Yes, in comparison to other Americans. However, I gave the time, money, and sacrifice to do it.”
Economic pressures are also influencing physician career decisions. A Doximity survey from August 2022, involving over 1,000 doctors, indicated that 55% were either delaying retirement (approximately 40%) or reducing expenses (about 15%) due to the prevailing economic climate. Doximity noted that while older physicians closer to retirement age are more inclined to delay retirement, a significant portion of physicians in their 30s and 40s are also considering this option.
Doximity’s latest data, gathered from 33,000 US physicians, showed a slight narrowing of the gender pay gap to 23% in 2023. This is a decrease from 26% in 2022 and 28% in 2021. Male doctors currently earn approximately $102,000 more annually than their female counterparts, compared to a $110,000 difference in 2022 and $122,000 in 2021. This persistent disparity may contribute to higher rates of physician burnout, particularly among women.
Image alt text: Financial Freedom for Physicians ad banner.
“While there appears to be slight movement in the right direction, physician pay parity continues to be a critical area in need of improvement,” Doximity emphasized. “This pay gap may be contributing to an even higher burnout rate among women physicians, with nearly 92% of women physicians surveyed reporting overwork, compared to 83% of men.”
Doximity stresses the importance of awareness in addressing this issue.
“One of the most critical steps to closing the physician gender pay gap is raising awareness of its existence,” Doximity stated. “In a survey of over 1,000 physicians, conducted in February and March 2024, about half (nearly 52%) said they believe there is a disparity in how men and women physicians are compensated. However, gender appears to impact this belief. While nearly 75% of women physicians surveyed believe there is a pay disparity, fewer than 30% of men physicians also believe this is true.”
Medscape’s 2023 data reflects this narrowing gap, with male doctors averaging $400,000 and female doctors averaging $310,000, resulting in a $90,000 difference.
Despite the concerns about pay equity and perceived undercompensation, it’s important to acknowledge that physicians remain among the highest-paid professionals in the US. As USA Today reported in late 2024, physicians hold 16 of the top 20 highest-paying jobs in the US, with dentists and dental specialists occupying the remaining four spots.
Understanding the Nuances of “Average Doctor Salary”
While the figure of $363,000 is often cited as the average doctor’s salary, its practical utility is limited. The reality is that physician compensation is highly variable and depends significantly on specialty.
For instance, Doximity’s latest report indicates that the average pediatric endocrinologist earns $217,875 annually, while the average neurosurgeon earns $763,908. This staggering difference of over $546,000 underscores the critical importance of specialty in determining income. Furthermore, the 2024 Medscape survey reveals a considerable gap between primary care physicians, averaging $277,000, and specialists, who average $394,000.
For a clearer picture of specialty-specific compensation, consider the following data from Medscape’s 2024 survey:
Medscape Physician Compensation Report 2024
Image alt text: Medscape 2024 Physician Compensation Report Chart showing average doctor salaries in the US.
Understanding average salary data within a specific specialty is far more valuable than focusing on a general “average doctor salary.”
Resolve rData offers proprietary data from numerous contract submissions, providing deeper insights into physician compensation.
The Significant Impact of Intraspecialty Pay Variation
Dr. Jim Dahle has frequently emphasized the often-overlooked reality that intraspecialty pay variation is more pronounced than interspecialty pay variation. In essence, the range of salaries within a specialty can be wider than the salary differences between different specialties.
A 2015 emergency medicine salary survey illustrates this point. While the specific numbers are dated, the underlying principle remains relevant.
Image alt text: Emergency Medicine Physician Salary Survey Chart from 2015 showing pay variation.
Dr. Dahle commented:
“Look at the 10th percentile for employees—$213,000. Now, look at the 90th percentile for partners—$510,000. Difference? $297,000. GREATER than the difference between the average pediatrician and the average plastic surgeon!
The ability to increase pay and increase it substantially solves a ton of financial problems that real doctors run into and email me about all the time. It’s way easier to pay off your student loans or mortgage on twice the income. Even after-tax, it’s much easier to become financially independent or have a dignified retirement or send your kids to the college of their choice when you can double your income.”
Calculating Doctor Salary per Hour
While annual physician income data is readily available, information on work hours is less easily accessible. A 2003 JAMA survey provides a rare combination of physician income and work hours data, although based on older figures.
The following physician salary per hour calculation combines the JAMA data with Medscape’s 2024 salary survey, adjusted for reported work hour variations across specialties. This chart assumes a 48-week work year for all physicians. Where Medscape data was unavailable, less reliable sources were used (marked with an asterisk).
Image alt text: Chart displaying estimated hourly physician salary by medical specialty.
Specialty Matters: Doctor Salary by Specialty
It’s crucial to recognize that salary survey data can vary significantly between sources. Average specialty pay can differ considerably across surveys, highlighting the need for careful interpretation. For example, comparing the 2024 Medscape survey with Doximity’s data reveals notable discrepancies.
Image alt text: Medscape 2024 chart comparing average annual earnings for various medical specialties.
Medscape reports an average salary of $261,000 for infectious disease doctors, while Doximity cites $314,000 – a nearly 17% difference. For orthopedists, Medscape reports $558,000, whereas Doximity indicates $654,000, approximately 14.6% higher. These variations pose challenges for new graduates or established physicians negotiating contracts. Which data should they prioritize? Furthermore, some specialties, like neurosurgery or cardiothoracic surgery, may not be included in all surveys. Accessing MGMA data or hiring contract management firms might be considered, but the reliability of even this data remains a question.
Medscape’s 2023 survey provides further specialty-specific salary data and insights into physician perceptions of fair compensation:
Highest-Paid Medical Doctors
Doximity’s survey data identifies surgical and procedural specialties as dominating the top-earning categories, while primary care and pediatrics tend to be among the lower-paid specialties.
Here are the top-earning specialties according to Doximity’s 2024 report:
Image alt text: Doximity 2024 chart listing the 20 highest-paid medical doctor specialties.
Lowest-Paid Medical Doctors
Conversely, here are the specialties with the lowest average salaries, according to Doximity:
Image alt text: Doximity 2024 chart showing the 20 lowest-paid medical doctor specialties.
It is important to remember that these charts represent the top and bottom 20 specialties. Salaries for specialties like psychiatry, neurology, and geriatrics fall within the mid-range, approximately $289,000 to $348,000.
Medscape’s 2024 survey also provides data on specialties with the largest salary increases and decreases:
Image alt text: Medscape 2024 chart showing medical specialties with increasing and decreasing salaries.
Despite a decline in popularity, emergency medicine physician salaries continue to rise, along with PM&R, neurology, and dermatology.
Further Reading:
How Much Do Surgeons Make?
The Impact of Location: Doctor Salary by State
Geographic arbitrage, the practice of living in a lower cost-of-living area while earning a higher salary, can be a strategy for physicians seeking financial independence. Areas with greater physician demand, often outside major coastal cities, may offer higher compensation. Medscape’s 2023 data supports the viability of geographic arbitrage.
Image alt text: Medscape 2023 chart ranking states by average physician salary.
The significantly higher cost of living in cities like New York City compared to states like Wisconsin highlights the financial advantage of practicing in lower-cost areas, where a physician in Wisconsin may potentially earn more than their counterpart in New York City.
Employment Setting and Doctor Salaries
The setting in which a physician practices also has a substantial impact on earnings. Doximity’s survey data reveals a potential difference of nearly $173,000 per year in 2024 between physicians in single-specialty groups and those working in urgent care centers.
Here’s a breakdown of average salaries by employment setting, according to Doximity:
- Single Specialty Group: $461,000 (5.0% increase)
- Multi-Specialty Group: $447,000 (6.1% increase)
- Solo Practice: $443,000 (3.5% increase)
- Hospital: $428,000 (5.8% increase)
- Health System/IDN/ACO: $427,000 (7.0% increase)
- Health Maintenance Organization: $406,000 (4.9% increase)
- Academic: $365,000 (5.2% increase)
- Urgent Care Center/Chain: $288,000 (9.1% increase)
- Government: $292,000 (8.6% increase)
For strategies to potentially increase your income within your specialty, Dr. Dahle offers valuable insights.
For more detailed information, explore the complete Doximity report, which includes data on physician compensation in various metro areas, cities with the fastest-growing salaries, and the impact of physician shortages. For comparison, refer to Medscape’s Physician Compensation 2024 Report.
What are your thoughts on these salary figures? Are any of these numbers surprising to you? Have you discovered effective ways to increase your income within your specialty?
[This article is an updated version of a post originally published in 2022.]
