Medical school provides extensive training in healthcare, but often falls short in financial education. As you navigate your medical career, understanding your earning potential is crucial. So, How Much Does A Doctor Make Yearly in the US? Recent data indicates a positive salary trend for physicians, yet many still question if their compensation truly reflects their dedication and demanding work.
Recent surveys provide valuable insights into physician compensation in 2023. The 2024 Medscape Physician Compensation Report reveals a roughly 3% increase in total compensation for US doctors. This marks a recovery from the previous year’s 2.4% decrease. Primary care physicians saw a 4% rise, while specialists across over 29 analyzed specialties experienced a 3% increase. However, it’s important to note that this growth is slightly below the approximate 4% average wage increase for non-unionized US employees in 2023.
Similarly, the 2024 Doximity Physician Compensation Report reported a 6% increase in physician pay, also rebounding from a 2.4% decrease the year prior. Despite these increases, Doximity highlights that when considering inflation, Medicare physician payments have actually decreased 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, inflation peaked at 9.1%, significantly impacting physician income and purchasing power. Although inflation stabilized in 2023 and the S&P 500 experienced substantial gains, the preceding inflationary period likely affected doctors’ financial standing.
Data from the MGMA 2024 Provider Compensation Data Report indicates a 4.4% rise in total compensation for both primary care and surgical specialists between 2022 and 2023. However, non-surgical specialists saw a smaller increase of only 1.81% during the same period.
Despite these salary increases, physician satisfaction with their compensation remains varied. Medscape’s survey revealed that 61% of doctors believe physicians, in general, are underpaid. In contrast, a 2021 survey of the general American public indicated that only 11% believed doctors were underpaid. When Medscape survey respondents were asked about their own pay, 49% felt underpaid.
One physician respondent commented:
“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 have also influenced physicians’ retirement plans. A 2022 Doximity survey found that 55% of doctors are delaying retirement (approximately 40%) or reducing expenses (around 15%) due to the economic climate. This trend affects physicians across age groups, with a significant percentage of those in their 30s and 40s also considering delayed retirement.
Doximity’s data, collected from over 33,000 US physicians, also shows a slight narrowing of the gender pay gap to 23% in 2023. While this is an improvement from 26% in 2022 and 28% in 2021, male doctors still earn approximately $102,000 more annually than their female counterparts. This disparity may contribute to higher burnout rates among women physicians, with nearly 92% reporting overwork compared to 83% of men.
Doximity emphasizes the need for continued progress in pay equity:
“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 wrote. “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.”
Raising awareness about the gender pay gap is crucial. A February-March 2024 Doximity survey revealed that while nearly 75% of women physicians believe a pay disparity exists, less than 30% of male physicians share this belief. Medscape’s 2023 data reflects a $90,000 pay gap, with male doctors averaging $400,000 and female doctors averaging $310,000.
Despite these disparities and concerns about fair compensation, physicians remain among the highest-paid professionals in the US. A USA Today report from late 2024 indicates that 16 of the 20 highest-paying jobs in the US are held by physicians, with dentists and dental specialists occupying the remaining four spots.
Understanding the Nuances of Average Doctor Salary
While the “average doctor salary” is often cited around $363,000, this figure is not particularly informative for understanding individual earning potential. The range of physician salaries is incredibly broad, heavily influenced by specialty choice.
For instance, Doximity’s latest report indicates that a pediatric endocrinologist averages $217,875 per year, while a neurosurgeon averages $763,908. This represents a staggering difference of over $546,000 annually. Similarly, Medscape’s 2024 survey reports an average of $277,000 for primary care physicians compared to $394,000 for specialists.
For a clearer picture of physician compensation, it’s more useful to examine salary data by specialty.
Medscape Physician Compensation Report 2024: By Specialty
Understanding salary variations across specialties is crucial for medical professionals at all stages of their careers.
Intraspecialty vs. Interspecialty Pay Variation
Dr. Jim Dahle has frequently emphasized that salary variation within a specialty (intraspecialty) can be even greater than the variation between specialties (interspecialty).
An emergency medicine salary survey from 2015 illustrates this point. While the specific numbers are outdated, the principle remains relevant:
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.”
Doctor Hourly Rate: An Estimate
While readily available physician income data exists, information on work hours is less common. A 2003 JAMA survey provides some of the limited data combining work hours and income.
The following chart provides an estimated physician salary per hour, combining the JAMA data with Medscape’s 2024 survey data and adjusting for specialty-specific work hours. It’s important to note that this chart assumes a 48-week work year and uses less reliable data sources (asterisked) where Medscape data was unavailable.
Doctor Salary Breakdown by Medical Specialty
It’s crucial to recognize that salary survey data can vary. Comparing data from different reports is advisable when researching physician compensation. For example, consider the variations between Medscape and Doximity’s reports.
For instance, Medscape reports infectious disease doctors earning $261,000, while Doximity indicates $314,000 – a nearly 17% difference. Similarly, for orthopedists, Medscape reports $558,000, and Doximity reports $654,000, a 14.6% difference. This variability highlights the challenge in relying on a single source when negotiating contracts or understanding earning potential.
Highest Paying Doctor Specialties
Surgical and procedural specialties consistently rank among the highest-paid medical fields. Conversely, primary care and pediatrics tend to be among the lower-earning specialties.
Here are the top-earning specialties according to Doximity’s 2024 report:
Lowest Paying Doctor Specialties
Conversely, here are the specialties with the lowest average salaries, according to Doximity:
Specialties like psychiatry, neurology, and geriatrics fall in the mid-range for average salaries, typically ranging from approximately $289,000 to $348,000.
Medscape’s 2024 survey also provides insights into which specialties are seeing the largest salary increases and decreases:
Despite a decrease in residency application popularity, emergency medicine continues to see salary growth, along with PM&R, neurology, and dermatology.
Further Reading:
How Much Do Surgeons Make?
Geographic Location and Doctor Salary
Geographic arbitrage, practicing in a lower cost-of-living area with a potentially higher salary due to greater need, can be a strategy for improving financial independence. Medscape data from 2023 suggests that this is not merely a myth.
The cost of living in major metropolitan areas like New York City is significantly higher than in states like Wisconsin. The chart suggests that physicians in states with potentially lower living costs may, in some cases, earn more than their counterparts in large coastal cities, supporting the concept of geographic arbitrage.
Impact of Employment Setting on Doctor Salaries
The type of employment setting significantly influences physician earnings. Doximity’s survey data highlights considerable salary variations across different practice environments in 2024:
- 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
- Government: $292,000
- Urgent Care Center/Chain: $288,000
Urgent care centers and government positions tend to offer lower average salaries compared to single and multi-specialty groups.
For strategies to potentially increase your income within your specialty, Dr. Dahle offers insights here.
For a more detailed analysis, explore the full Doximity report and Medscape’s Physician Compensation 2024 Report.
Understanding doctor salaries requires looking beyond the average. Specialty choice, geographic location, and employment setting are all critical factors that significantly impact a physician’s yearly income. By exploring detailed compensation reports and considering these factors, medical professionals can gain a more accurate understanding of their earning potential.
[This updated post was originally published in 2022.]
