Do Doctors Pay for Residency? Understanding Residency Finances

Do Doctors Pay For Residency? No, doctors do not pay for residency; instead, they receive a salary. Residency is a period of graduate medical training where medical school graduates gain practical experience in their chosen specialty, and understanding how residents are compensated is crucial for those planning their medical careers. This article from thebootdoctor.net will explore the financial aspects of residency, including salaries, benefits, and factors influencing resident pay, ensuring you’re well-informed about the realities of post-graduate medical training and foot health during this demanding time.

1. What is a Medical Residency and Why is it Important?

A medical residency is a paid, graduate medical education program where doctors-in-training practice medicine alongside experienced physicians in a hospital or clinic. It is important because most states require doctors to complete a residency before they can practice medicine independently. Residencies typically last three to seven years, allowing graduates to specialize in areas like surgery, internal medicine, or pediatrics.

1.1. Defining the Medical Residency

A medical residency is a critical phase of a physician’s training, serving as the bridge between medical school’s theoretical knowledge and independent clinical practice. During this period, residents apply their education in real-world medical settings under the supervision of attending physicians. This hands-on experience is essential for developing the skills and judgment necessary to provide quality patient care. According to the Accreditation Council for Graduate Medical Education (ACGME), residency programs must meet specific standards to ensure residents receive comprehensive training.

1.2. How Residencies Work

Residency programs are structured to provide a progressive learning experience. In the first year, often called the intern year, residents focus on basic clinical skills and patient management. As they advance, they take on more responsibilities, including diagnosing illnesses, performing procedures, and managing complex medical cases. Programs often include rotations through various sub-specialties, allowing residents to gain a broad understanding of their chosen field. The ACGME sets guidelines for the number of hours residents can work to prevent burnout and ensure patient safety.

1.3. The Role of the Resident in Healthcare

Residents play a vital role in the healthcare system, providing essential medical services while under supervision. They are often the first point of contact for patients, conducting initial assessments, ordering tests, and developing treatment plans. Residents also participate in research, quality improvement projects, and teaching medical students. Their contributions are essential to the functioning of hospitals and clinics, especially in academic medical centers.

1.4. Matching into a Residency Program

Securing a residency position involves a competitive application process. Medical students apply to programs of interest and participate in interviews. The National Resident Matching Program (NRMP) then uses an algorithm to match applicants with programs based on their preferences and the program’s ranking of applicants. Matching into a residency program is a significant milestone in a physician’s career, opening the door to specialized training and future practice.

1.5. The Importance of Choosing the Right Specialty

Selecting a medical specialty is one of the most crucial decisions a medical student makes. The choice impacts not only the type of medical practice they will pursue but also their lifestyle, earning potential, and job satisfaction. Factors to consider include personal interests, skills, values, and the demands of the specialty. Some specialties require longer training periods and involve more intense workloads, while others offer more predictable hours and a better work-life balance. It’s essential to research and shadow different specialties to make an informed decision.

2. How Much Do Medical Residents Actually Earn in the USA?

Medical residents in the US earn an average annual salary of $63,009, with increases of $2,000 to $5,000 each year of residency. Salaries include benefits such as health insurance, paid time off, dental insurance, and vision insurance. However, actual pay varies based on location, employer, and specialty.

2.1. Average Resident Salaries Across the United States

Resident salaries in the United States vary depending on several factors, including geographic location, the type of institution (academic vs. community hospital), and the specialty. According to the “Residents Salary and Debt Report,” the national average salary for medical residents is approximately $63,009 annually. However, this number can fluctuate significantly. For example, residents in metropolitan areas with a high cost of living, such as New York City or San Francisco, may receive higher compensation to offset these expenses.

2.2. Detailed Breakdown of Resident Pay

To understand resident compensation better, it’s essential to break down the typical pay structure. Here’s a detailed look at average annual salaries based on the postgraduate year (PGY):

Resident Job Title Average Annual Salary
Resident PGY-1 $63,009
Resident PGY-2 $66,092
Resident PGY-3 $69,136
Resident PGY-4 $71,979
Resident PGY-5 $74,786
Resident PGY-6 $77,276
Resident PGY-7 $79,938
Resident PGY-8 $83,918

As residents progress through their training, their salaries increase, reflecting their growing experience and responsibilities. This incremental increase helps to alleviate some of the financial strain as they continue their medical education.

2.3. Additional Benefits and Perks

In addition to their base salaries, medical residents often receive a range of benefits and perks that can significantly impact their overall compensation package. These benefits may include:

  • Health Insurance: Comprehensive health coverage is typically provided, often including medical, dental, and vision insurance.
  • Paid Time Off (PTO): Residents are usually entitled to a certain number of paid vacation days and sick leave.
  • Retirement Plans: Some institutions offer retirement savings plans, such as 401(k)s or 403(b)s, with employer matching contributions.
  • Professional Development Funds: Funds may be available to cover the costs of attending conferences, workshops, and other professional development activities.
  • Meal Stipends: Many hospitals provide meal stipends or free meals to residents during their shifts.
  • Housing Assistance: In high-cost areas, some programs offer housing assistance or subsidies.
  • Malpractice Insurance: Coverage for medical malpractice is generally provided by the residency program.

2.4. Factors Influencing Resident Pay

Several factors can influence how much a medical resident is paid. These include:

  • Geography: As mentioned earlier, the cost of living in different regions can affect resident salaries.
  • Employer: Academic medical centers, community hospitals, and government facilities may offer varying levels of compensation.
  • Specialty: Certain specialties, particularly those that require longer training or are in high demand, may offer higher salaries.

2.5. The Debate Over Resident Compensation

There is ongoing debate about whether medical residents are adequately compensated for their work. On one hand, residents are highly educated professionals who work long hours and bear significant responsibility for patient care. On the other hand, they are still in training and not yet fully licensed physicians.

Many residents graduate with substantial student loan debt, which can be challenging to repay on a resident’s salary. The long hours and demanding nature of residency can also make it difficult for residents to take on additional work to supplement their income. As a result, there is increasing advocacy for higher resident pay to better reflect the value of their contributions to the healthcare system.

3. Residency Salaries: How Does Your Specialty Affect Your Paycheck?

A medical resident’s specialty significantly impacts their salary, with longer, more complex specialties typically offering higher pay both during and after residency. For example, surgical specialties like plastic surgery and specialized surgery tend to offer better salaries compared to family medicine or internal medicine. Understanding these differences is crucial for career planning.

3.1. The Influence of Specialty on Resident Pay

The medical specialty a resident chooses has a considerable impact on their potential salary. Certain specialties, particularly those that involve more complex procedures, longer training periods, or higher levels of risk, tend to offer better compensation. This reflects the additional expertise and responsibilities associated with these fields.

3.2. High-Paying Specialties

Some of the highest-paying specialties during residency include:

  • Plastic Surgery: Residents in plastic surgery often receive higher salaries due to the extensive training and specialized skills required.
  • Specialized Surgery: This category includes various surgical sub-specialties, such as neurosurgery, cardiothoracic surgery, and orthopedic surgery, which typically offer competitive salaries.
  • Pathology: Although often less discussed, pathology residents can earn relatively high salaries due to the critical role they play in diagnosing diseases.

Here’s a quick comparison table for some high-paying specialties:

Specialty Salary
Plastic Surgery $69,500
Specialized Surgery $69,500
Pathology $66,500

3.3. Mid-Range Specialties

Other specialties offer moderate salaries during residency. These include:

  • Radiology: Radiology residents are well-compensated, reflecting the importance of imaging in modern medicine.
  • Neurology: With increasing awareness of neurological disorders, neurology residents receive competitive pay.
  • Anesthesiology: Anesthesiology residents are essential in surgical settings and are compensated accordingly.

3.4. Lower-Paying Specialties

Some specialties tend to offer lower salaries during residency. These include:

  • Family Medicine: Family medicine is crucial for primary care but often has lower compensation.
  • Internal Medicine: Despite its breadth, internal medicine residents may find their salaries lower compared to surgical fields.
  • Pediatrics: Pediatrics, focused on child health, generally offers more modest compensation during residency.

Here’s a glimpse at some lower-paying specialties:

Specialty Salary
Family Medicine $58,500
Internal Medicine $61,500
Pediatrics $63,300

3.5. Factors Contributing to Salary Variations

Several factors contribute to these salary variations:

  • Demand: Specialties in high demand may offer higher salaries to attract more candidates.
  • Training Length: Longer residency programs often come with increased compensation to reflect the extended commitment.
  • Complexity: Specialties that involve complex procedures or decision-making may offer higher pay.
  • Work Hours: Specialties with more demanding work hours may compensate residents more generously.

3.6. Long-Term Earning Potential

While residency salaries provide a starting point, it’s crucial to consider long-term earning potential. Certain specialties that offer higher salaries during residency also tend to maintain higher compensation levels throughout a physician’s career. This can influence career choices and financial planning for medical residents.

4. Year-by-Year Breakdown: How Residency Pay Evolves Over Time

Residency pay typically increases each year, reflecting added experience and responsibility. Salaries may start around $60,000 annually and increase by about $5,000 per year. By the end of a residency program, residents might earn nearly as much as senior physicians, depending on the specialty, with salaries ranging from $70,000 to $125,000 annually.

4.1. Starting Salaries for PGY-1 Residents

The first year of residency, also known as Postgraduate Year 1 (PGY-1) or the internship year, marks the beginning of a physician’s hands-on training. Starting salaries for PGY-1 residents typically range from $56,000 to $65,000 per year, depending on the factors mentioned earlier, such as location, institution, and specialty. This salary provides a baseline compensation for residents as they begin their clinical training.

4.2. Incremental Increases in Subsequent Years

As residents progress through their training, their salaries gradually increase to reflect their growing experience, skills, and responsibilities. The average annual increase in salary is around $3,000 to $5,000 per year. This incremental increase helps residents manage their financial obligations and plan for the future.

Here’s a general overview of how residency pay evolves over time:

Residency Year Average Annual Salary
Year 1 $56,150
Year 2 $58,290
Year 3 $60,634
Year 4 $63,634
Year 5 $66,277
Year 6 $69,043
Year 7 $71,339
Year 8 $75,841

4.3. Factors Affecting Salary Increases

While the general trend is an annual increase in salary, several factors can affect the specific amount residents receive:

  • Performance: Exceptional performance may result in slightly higher salary increases.
  • Specialty: Some specialties may offer more substantial increases due to higher demand or complexity.
  • Institutional Policies: Each institution has its own policies regarding salary increases, which may be influenced by budget constraints or other factors.

4.4. Comparing Final Year Salaries

By the final year of residency, salaries can range from $70,000 to $125,000 annually, depending on the specialty and location. Residents in high-paying specialties or those working in metropolitan areas with a high cost of living may earn more. This final year salary provides a financial bridge as residents transition into independent practice or fellowship training.

4.5. The Impact on Financial Planning

Understanding how residency pay evolves over time is crucial for financial planning. Residents must budget their expenses, manage student loan debt, and save for future goals. The predictable increases in salary allow residents to make informed financial decisions and gradually improve their financial well-being throughout their training.

5. Medical Residency Pay: How Does the U.S. Compare Globally?

Medical residents in the U.S. generally earn more than those in Europe and Canada. In Canada, salaries start around $60,000, varying by province. In the U.K., the average resident salary starts around £33,340 annually, while in Germany, it can reach €59,630 per year. The U.S. tends to offer higher starting salaries, reflecting its privatized healthcare system.

5.1. Overview of U.S. Medical Resident Salaries

The United States has a predominantly private healthcare system, which tends to offer higher compensation for medical residents compared to countries with universal healthcare systems. As previously mentioned, the average starting salary for U.S. residents is around $63,009 annually, with incremental increases each year.

5.2. Canada: A Universal Healthcare Model

Canada operates under a universal healthcare model, where healthcare services are primarily funded by the government. As a result, resident salaries tend to be more standardized and may be lower than in the U.S. Resident salaries in Canada typically start around $60,000 CAD per year, though this can vary by province.

Here’s a comparison of starting salaries in different Canadian provinces:

  • Quebec: Around $49,258 CAD per year (lowest)
  • Nova Scotia: Over $69,867 CAD per year (highest)

5.3. Europe: Varied Healthcare Systems

Europe consists of countries with diverse healthcare systems, ranging from universal healthcare models to hybrid systems with public and private components. Resident salaries vary significantly depending on the country.

  • United Kingdom (U.K.): The U.K. has a universal healthcare system called the National Health Service (NHS). The average starting salary for medical residents is around £33,340 annually, which is approximately $41,873 USD or $57,239 CAD.
  • Germany: Germany has a hybrid healthcare system with both public and private insurance options. Medical residents in Germany can expect to make around €59,630 per year, depending on the specialty and location.

5.4. Comparison Table

To provide a clear comparison, here’s a table summarizing the starting salaries for medical residents in different regions:

Region Starting Salary (USD Equivalent)
United States $63,009
Canada (Average) $45,000 – $55,000
United Kingdom $41,873
Germany $64,000 (Approximate)

5.5. Factors Contributing to the Differences

Several factors contribute to the differences in medical resident salaries across countries:

  • Healthcare System Model: Countries with privatized healthcare systems often offer higher salaries due to market competition and revenue generation.
  • Cost of Living: The cost of living in different regions can influence salary levels, with higher costs often leading to higher compensation.
  • Government Funding: Countries with universal healthcare systems rely on government funding, which may limit the salaries they can offer to medical residents.
  • Demand and Supply: The demand for medical professionals and the supply of qualified residents can also impact salary levels.

5.6. Implications for Medical Residents

Understanding the differences in medical resident salaries across countries can have several implications for aspiring physicians:

  • Career Planning: Residents may consider pursuing training in countries with higher compensation to improve their financial well-being.
  • Financial Planning: Residents training in countries with lower salaries may need to budget more carefully and seek additional financial support.
  • International Opportunities: Residents may explore opportunities to work or practice in countries with more attractive compensation packages after completing their training.

6. Unveiling the Hidden Perks: Benefits Medical Residents Receive

Most residents receive healthcare benefits like dental, maternity leave, and life insurance, varying by workplace. Smaller benefits include meal cards, parking spots, and lockers. Paid vacation and sick days are common, along with on-call stipends. Parental leave is increasingly offered in Canada and the US.

6.1. Comprehensive Health Coverage

One of the most significant benefits medical residents receive is comprehensive health coverage. This typically includes medical, dental, and vision insurance, ensuring that residents have access to necessary healthcare services during their training. The specific details of the health coverage can vary depending on the institution, but it generally covers routine check-ups, specialist visits, hospital stays, and prescription medications.

6.2. Paid Time Off for Rest and Recovery

Medical residency can be incredibly demanding, both physically and emotionally. To ensure that residents have adequate time for rest and recovery, most programs offer paid time off (PTO). This includes vacation days, sick leave, and personal days. The amount of PTO can vary, but it is typically around 2-4 weeks per year.

6.3. Financial Security Through Insurance

In addition to health insurance, medical residents often receive other types of insurance to provide financial security. These may include:

  • Life Insurance: Provides a death benefit to the resident’s beneficiaries in the event of their passing.
  • Disability Insurance: Provides income replacement if the resident becomes disabled and unable to work.
  • Malpractice Insurance: Protects the resident from financial losses in the event of a medical malpractice claim.

6.4. Support for Family Planning

Recognizing the importance of family planning, many residency programs now offer benefits such as maternity leave and parental leave. Maternity leave allows female residents to take time off to care for their newborn children, while parental leave provides similar benefits for fathers or secondary caregivers. These benefits can help residents balance their professional and personal lives.

6.5. Additional Perks and Amenities

Beyond the standard benefits, some residency programs offer additional perks and amenities to enhance the resident experience. These may include:

  • Meal Stipends or Free Meals: Provides residents with financial assistance for meals during their shifts.
  • On-Call Stipends: Additional compensation for residents who are on-call and available to respond to emergencies.
  • Housing Assistance: Help with finding affordable housing in the area.
  • Transportation Benefits: Subsidized parking or public transportation passes.
  • Professional Development Funds: Money to cover the costs of attending conferences, workshops, and other professional development activities.
  • Gym Memberships: Access to on-site or local fitness facilities.
  • Employee Assistance Programs (EAPs): Confidential counseling and support services for residents who are struggling with stress, burnout, or other personal issues.

7. Real-World Examples: Residency Salaries and Benefits in Action

Examples of residency salaries and benefits in U.S. clinics include Maine Medical Center, Concord Hospital, and UTSouthwestern. Maine Medical Center offers salaries from $68,036 to $74,239 with health, dental, and vision coverage. Concord Hospital provides salaries from $64,595 to $69,854, including lunch and meal cards. UTSouthwestern has salaries from $61,323 to $66,661, with pharmacy and accident insurance.

7.1. Maine Medical Center, ME

Located in Maine, Maine Medical Center offers a variety of specialties and provides all medical residents with the same benefits as regular employees.

  • Salaries:
    • PGY-1: $68,036
    • PGY-2: $71,308
    • PGY-3: $74,239
  • Benefits:
    • Health & Dental coverage
    • Vision Insurance
    • Life Insurance
    • Flexible Spending Account
    • Malpractice insurance
    • Disability Insurance
    • Pension/Retirement plan
    • Tuition Assistance
    • Prescription discounts
    • Multiple employee programs
  • Vacation & Sick Days:
    • Up to 21 working days of vacation per year
    • Sick time and leaves of absence, including maternity/paternity leave

7.2. Concord Hospital, NH

Concord Hospital specializes in family medicine and offers shorter residency programs.

  • Salaries:
    • PGY-1: $64,595
    • PGY-2: $67,276
    • PGY-3: $69,854
  • Benefits:
    • Health & Dental coverage
    • Life Insurance
    • Flexible Spending Account
    • Malpractice insurance
    • Lunch & Meal Cards
    • Parking
    • Childcare
    • Gym Membership
    • Prescription discounts
    • Multiple employee programs
  • Vacation & Sick Days:
    • 20 days per year for vacation, sick, and personal time

7.3. UTSouthwestern, TX

UTSouthwestern in Dallas, Texas, provides state-of-the-art simulation training in multiple specialties.

  • Salaries:
    • PGY-1: $61,323
    • PGY-2: $64,256
    • PGY-3: $66,661
  • Benefits:
    • Health & Dental coverage
    • Vision Insurance
    • Life Insurance
    • Pharmacy Insurance
    • Accident Insurance
    • Disability Insurance
    • Lunch & Meal Cards
    • Parking
    • Pension/Retirement plan
    • Cellular phone discounts
  • Vacation & Sick Days:
    • Not specified

7.4. Comparing the Examples

Benefit Maine Medical Center Concord Hospital UTSouthwestern
Salary (PGY-1) $68,036 $64,595 $61,323
Health & Dental Yes Yes Yes
Vision Insurance Yes No Yes
Life Insurance Yes Yes Yes
Meal Benefits No Yes (Lunch & Meal Cards) Yes (Lunch & Meal Cards)
Paid Vacation 21 days 20 days Not specified

7.5. Key Takeaways

  • Salary Variations: Salaries differ based on location and the institution’s financial resources.
  • Comprehensive Benefits: Most programs offer a robust package, including health, dental, and life insurance.
  • Additional Perks: Some hospitals provide extra benefits like meal cards and gym memberships.

8. Answering Your Burning Questions: FAQs About Residency Pay

Here are some frequently asked questions about residency pay:

8.1. Do Medical Residents Make Money?

Yes, medical residents are paid for their work in hospitals or clinics, despite debates on whether they should be considered students or employees.

8.2. Do Students Get Paid in Medical School?

No, medical students do not get paid; they pay for their education, unlike residents who are paid for practicing medicine post-graduation.

8.3. How Much Tax Do Medical Residents Pay?

The tax amount varies based on salary, with potential exemptions and tax breaks depending on the state.

8.4. How Much Is the Pay Increase from the First to Last Year of Residency?

Pay typically increases by about $5,000 each year of residency, depending on program length.

8.5. Do Medical Residents Get Benefits?

Yes, benefits such as vacation days, parking, life insurance, and health coverage are commonly offered, though they vary.

8.6. Is Medical Residency Worth It?

Yes, it is essential for most U.S. practices and offers a paid learning experience.

8.7. Do Residents Sleep in the Hospital?

No, residents do not usually sleep in the hospital, though they have break rooms for naps.

8.8. What Are the Highest-Paid Residencies?

Plastic Surgery, Specialized Surgery, and Pathology are among the highest-paid residencies.

8.9. What Are the Lowest-Paid Residencies?

Family Medicine, Emergency Medicine, and Internal Medicine are among the lowest-paid residencies.

8.10. Are Medical Residents Considered Students or Employees?

Medical residents are typically considered employees due to the significant difference between school and residency.

9. Long Hours, Achy Feet: Foot Health Tips for Medical Residents from thebootdoctor.net

Medical residents spend countless hours on their feet, which can lead to various foot problems. thebootdoctor.net understands the challenges faced by those in demanding professions and offers practical advice to maintain foot health.

9.1. Common Foot Problems Among Medical Residents

  • Plantar Fasciitis: Inflammation of the plantar fascia, causing heel pain. Alt text: A medical illustration depicting plantar fasciitis, highlighting the inflamed plantar fascia ligament in the foot.
  • Achilles Tendinitis: Inflammation of the Achilles tendon, leading to pain in the back of the heel. Alt text: An illustration showing Achilles tendinitis, with the Achilles tendon marked with inflammation and discomfort.
  • Bunions: Bony bumps that form on the joint at the base of the big toe. Alt text: A podiatric diagram showing the formation and characteristics of a bunion on the big toe joint.
  • Blisters: Fluid-filled pockets that develop on the skin due to friction. Alt text: A close-up image of a foot with a blister, illustrating the discomfort caused by friction.
  • Stress Fractures: Small cracks in the bones of the foot, often caused by overuse. Alt text: An X-ray of a foot revealing a stress fracture in one of the metatarsal bones.

9.2. Choosing the Right Footwear

Selecting appropriate footwear is crucial for preventing foot problems.

  • Supportive Shoes: Opt for shoes with good arch support and cushioning. Alt text: A pair of supportive athletic shoes, highlighting the arch support and cushioning features essential for foot comfort.
  • Proper Fit: Ensure shoes fit well, with enough room in the toe box. Alt text: A diagram illustrating how to properly measure your foot to ensure a good shoe fit, focusing on toe box space.
  • Avoid High Heels: Limit wearing high heels, as they can increase stress on the feet. Alt text: A comparison image illustrating the difference in foot stress between wearing high heels and supportive flat shoes.
  • Orthotics: Consider using orthotic inserts for additional support and cushioning. Alt text: A set of custom orthotic inserts designed to provide arch support and alleviate foot pain.

9.3. Daily Foot Care Routine

  • Stretching Exercises: Regularly perform stretches to improve flexibility and reduce tension in the feet and ankles. Alt text: A physical therapist demonstrating stretching exercises for the feet and ankles to improve flexibility and reduce foot pain.
  • Foot Soaks: Soak your feet in warm water with Epsom salts to relieve soreness. Alt text: A person soaking their feet in a warm water basin with Epsom salts, used to soothe sore and tired feet.
  • Massage: Massage your feet to improve circulation and reduce muscle tension. Alt text: A foot massage being performed, focusing on pressure points to relieve tension and improve circulation.
  • Moisturize: Keep your feet moisturized to prevent dry skin and cracking. Alt text: A person applying moisturizer to their feet, highlighting the importance of keeping the skin hydrated.

9.4. When to Seek Professional Help

  • Persistent Pain: If you experience persistent foot pain, consult a podiatrist. Alt text: A podiatrist examining a patient’s foot, underscoring the importance of seeking professional care for persistent foot issues.
  • Signs of Infection: Seek medical attention if you notice signs of infection, such as redness, swelling, or pus. Alt text: A close-up image of an infected foot wound, showing redness, swelling, and the need for medical intervention.
  • Numbness or Tingling: Consult a healthcare professional if you experience numbness or tingling in your feet. Alt text: An illustration indicating nerve damage in the foot, causing numbness and tingling sensations.

9.5. thebootdoctor.net Resources

Visit thebootdoctor.net for more detailed guides on foot health, shoe recommendations, and expert advice tailored to the needs of medical professionals. thebootdoctor.net can help you maintain healthy and happy feet throughout your demanding residency.

10. Final Thoughts: Weighing the Financial Realities of Residency

A medical resident’s salary typically starts around $50,000 annually and increases by about $5,000 each year. The starting point depends on location, with the highest-paying residencies often being the longest and most complex. thebootdoctor.net encourages medical residents to explore HR resources and preserve their well-being during this demanding but rewarding career phase.

Medical residency is a crucial step in becoming a licensed physician, and understanding the financial aspects is essential for career planning. While salaries may seem modest compared to the workload, the benefits, increasing pay over time, and long-term earning potential make residency a worthwhile investment. By staying informed and proactive, medical residents can navigate their training with confidence and pave the way for a successful and fulfilling career.

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