After a challenging year with a dip in earnings, physician incomes rebounded in 2023, according to recent surveys. While Doctor Salaries are on the rise, a significant portion of physicians still feel their compensation doesn’t adequately reflect their demanding work and extensive training. Let’s delve into the latest data on doctor salaries, exploring the trends, averages, and factors that influence physician compensation in 2024.
Recent reports from Medscape and Doximity provide valuable insights into the current state of doctor salaries. The 2024 Medscape Physician Compensation Report indicates a 3% increase in total compensation for US physicians in 2023, a positive shift from the 2.4% decrease experienced the previous year. Primary care physicians saw a slightly higher rise at 4%, while specialists across 29+ specialties witnessed a 3% growth. However, Medscape notes that this increase still lags behind the approximate 4% average raise received by non-unionized US employees in 2023.
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The 2024 Doximity Physician Compensation Report aligns with this trend, reporting a 6% increase in physician pay after a 2.4% decline the year before. Despite this recovery, Doximity highlights the persistent impact of inflation, stating that when adjusted for inflation, Medicare physician payments have decreased by 26% since 2001. This inflationary pressure continues to erode the real income and purchasing power of doctors, even with nominal salary increases.
While 2022 saw physician income and net worth potentially decrease due to high inflation and poor stock market performance, 2023 brought stabilization. Inflation moderated, and the S&P 500 experienced significant gains, followed by further growth in 2024. According to the MGMA 2024 Provider Compensation Data Report, both primary care and surgical specialist physician total compensation increased by approximately 4.4% between 2022 and 2023. However, non-surgical specialist physician compensation saw a more modest rise of 1.81% during the same period.
Despite these increases, physician sentiment regarding compensation remains mixed. Medscape’s survey reveals that 61% of doctors believe physicians, in general, are underpaid. Interestingly, when asked about their own compensation, 49% of physician survey respondents felt personally underpaid. This suggests a sense of broader undervaluation within the medical profession, even among those who consider themselves adequately compensated compared to other professions.
Economic pressures are also influencing physician career decisions. A Doximity survey from 2022 indicated that 55% of doctors were either delaying retirement or reducing expenses due to the economic climate. This trend was more pronounced among older physicians nearing retirement age, but a significant portion of younger physicians were also considering delaying retirement due to financial concerns.
The gender pay gap in medicine, while still present, is showing signs of narrowing. Doximity’s latest data indicates a slight decrease to 23% in 2023, down from 26% in 2022 and 28% in 2021. Male doctors earn approximately $102,000 more annually than their female counterparts, a disparity that may contribute to higher burnout rates among women physicians, as reported by Doximity. Raising awareness of this persistent gender pay gap is crucial for achieving pay parity within the medical field.
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Despite concerns about fair pay, it’s undeniable that doctors remain among the highest-paid professionals in the US. A USA Today report from late 2024 highlighted that physicians occupy 16 of the top 20 highest-paying jobs in the US, with dentists and dental specialists filling the remaining spots.
Understanding Average Doctor Salary
While the overall average doctor salary might seem like a useful metric, it can be misleading due to the vast variations in compensation across specialties. For instance, the average salary for a pediatric endocrinologist can differ dramatically from that of a neurosurgeon. According to Doximity, the average pediatric endocrinologist earns around $217,875 per year, while neurosurgeons average $763,908 annually – a difference exceeding $546,000. Similarly, Medscape data reveals a significant gap between primary care physicians, earning an average of $277,000, and specialists at $394,000.
For a more practical understanding of doctor salaries, it’s essential to consider compensation data specific to medical specialties.
Medscape Physician Compensation Report 2024: General Compensation Overview
Alt text: Medscape 2024 Physician Compensation Report chart displaying average doctor salary in the US.
Understanding pay variations within and between specialties is crucial for doctors evaluating career paths and negotiating contracts.
Intraspecialty vs. Interspecialty Pay Variation
Dr. Jim Dahle has emphasized that salary variation within a specialty can be greater than the variation between different specialties. An emergency medicine salary survey from 2015 illustrates this point. While the data is dated, the principle remains relevant. The survey revealed a substantial pay difference even within emergency medicine, with the 10th percentile for employed physicians at $213,000 and the 90th percentile for partners reaching $510,000 – a $297,000 difference. This intraspecialty variation can exceed the salary gap between average pediatricians and plastic surgeons, highlighting the significant impact of factors beyond just specialty choice on individual doctor salaries.
Alt text: Salary survey chart demonstrating pay variation within emergency medicine specialty.
Maximizing earning potential within a chosen specialty can significantly improve a doctor’s financial situation, facilitating student loan repayment, mortgage management, and progress towards financial independence.
Doctor Salary Per Hour
While annual income figures are readily available, data on physician work hours is less accessible. Combining older work hours data from a 2003 JAMA survey with more recent Medscape salary data provides an estimated hourly doctor salary across different specialties. This calculation, assuming a 48-week work year, offers a comparative perspective on hourly earnings, although it relies on some potentially outdated or less reliable data points for certain specialties.
Alt text: Chart illustrating estimated doctor salary per hour across various medical specialties.
Doctor Salary by Specialty: Comparing Surveys
It’s important to recognize that doctor salary surveys can vary, leading to discrepancies in reported average pay for the same specialties. Comparing data from different sources, such as Medscape and Doximity, reveals these variations. For example, Medscape reports an average infectious disease doctor salary of $261,000, while Doximity cites $314,000 – a nearly 17% difference. Orthopedist salaries also show variation, with Medscape at $558,000 and Doximity at $654,000, a 14.6% difference. These discrepancies underscore the challenge in relying on a single source for salary benchmarks and highlight the importance of considering multiple reports when evaluating compensation expectations or negotiating contracts.
Alt text: Medscape 2024 chart comparing average annual earnings for different medical specialties.
For specialties not covered in specific surveys, or when seeking more granular data, resources like MGMA data or contract management firms may offer more detailed compensation information, although often at a cost.
Highest-Paid and Lowest-Paid Doctors
Doximity’s 2024 survey sheds light on the highest and lowest paying specialties. Surgical and procedural specialties dominate the top of the earning spectrum, while primary care and pediatric specialties tend to be at the lower end.
Alt text: Doximity 2024 chart showcasing the highest-paid medical doctor specialties.
Alt text: Doximity 2024 chart showing the lowest-paid medical doctor specialties.
Mid-range specialties like psychiatry, neurology, and geriatrics typically have average salaries ranging from approximately $289,000 to $348,000. Medscape’s 2024 survey also provides insights into specialties with the most significant salary increases and decreases.
Alt text: Medscape 2024 chart detailing medical specialties with increasing and decreasing salaries.
Despite declining popularity among medical students, emergency medicine salaries continue to rise, along with PM&R, neurology, and dermatology.
Doctor Salary by State and Employment Setting
Geographic location significantly influences doctor salaries. Practicing in lower cost-of-living areas with high physician demand, a concept known as geographic arbitrage, can be a strategy for maximizing financial well-being. Medscape data suggests that states with potentially higher physician salaries relative to cost of living exist.
Alt text: Medscape 2023 chart displaying states with highest physician salaries.
For example, a doctor in Wisconsin may have a higher take-home pay than a counterpart in New York City due to the lower cost of living, even if the nominal salary in NYC is higher.
Employment setting is another crucial factor impacting doctor salaries. Doximity data reveals substantial pay differences based on practice type. Single-specialty groups tend to offer the highest average compensation, while urgent care centers and government positions typically have lower average salaries.
- Single Specialty Group: $461,000
- Multi-Specialty Group: $447,000
- Solo Practice: $443,000
- Hospital: $428,000
- Health System/IDN/ACO: $427,000
- Health Maintenance Organization: $406,000
- Academic: $365,000
- Urgent Care Center/Chain: $288,000
- Government: $292,000
Understanding these variations based on specialty, location, and employment setting is crucial for doctors seeking to optimize their earning potential and financial security. Exploring resources like the full Doximity report and Medscape’s Physician Compensation 2024 Report can provide further detailed insights into doctor salaries and compensation trends.
Conclusion:
Doctor salaries saw a positive trend in 2023, but understanding the nuances of physician compensation requires looking beyond simple averages. Specialty choice, geographic location, employment setting, and even intraspecialty variations all play significant roles in determining a doctor’s earning potential. By considering these factors and utilizing comprehensive compensation reports, physicians can make informed decisions about their careers and financial futures.
