Medical school provides extensive clinical training, but often falls short on financial education. Take control of your finances with our FREE 12-week email course designed to help you confidently invest and build wealth as a physician.
Thank you for signing up!
By Josh Katzowitz, WCI Content Director
Physician salaries saw a rebound in 2023 after a year of decline, according to recent surveys. However, a significant portion of doctors still feel their compensation doesn’t adequately reflect their demanding work and extensive training.
The newly published 2024 Medscape Physician Compensation Report indicates a roughly 3% increase in total compensation for US physicians in 2023. This marks a positive shift from the 2.4% decrease experienced the previous year. Primary care physicians saw a 4% rise in compensation, while specialists across over 29 analyzed specialties experienced a 3% increase, based on Medscape’s survey of over 7,000 doctors. Despite this growth, Medscape notes that physician salary increases still lag behind the approximate 4% average raise received by non-unionized US employees in 2023.
Similarly, the 2024 Doximity Physician Compensation Report reported a 6% increase in physician pay after a 2.4% decrease the year before. However, Doximity highlights that when adjusted for inflation, Medicare physician payments have 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, physician income and purchasing power were negatively impacted by inflation, which peaked at 9.1% that summer. This likely contributed to a decrease in a doctor’s net worth, especially considering the poor performance of both stocks and bonds in 2022. Inflation stabilized in 2023, and the S&P 500 showed a 24% gain, followed by another 23% gain in 2024.
Data from the MGMA 2024 Provider Compensation Data Report indicates a 4.4% increase in total compensation for both primary care physicians and surgical specialists between 2022 and 2023. However, non-surgical specialists experienced a smaller increase of only 1.81% during the same period.
Physicians surveyed by Medscape expressed mixed feelings about their compensation.
Medscape reported that 61% of doctors believe physicians, in general, are underpaid, while 34% feel they are paid appropriately. Only 5% believe doctors are overpaid. In contrast, a 2021 survey of Americans revealed that only 11% believed doctors were underpaid. When Medscape survey participants were asked about their own pay, 49% felt underpaid.
One survey 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.”
A Doximity survey from August 2022, involving over 1,000 physicians, found that 55% are addressing the economic climate by either delaying retirement (approximately 40% of respondents) or reducing expenses (around 15%). Doximity noted, “Older physicians, who are closer to the traditional retirement age, are much more likely to delay retirement than younger physicians. But a substantial percentage of those in their 30s and 40s are also planning to delay retirement.”
According to Doximity’s latest data, gathered from 33,000 US physicians, the gender pay gap in physician salaries slightly decreased 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 (compared to $110,000 in 2022 and $122,000 in 2021). This disparity may contribute to higher rates of physician burnout, particularly among women.
Alternative text: Advertisment banner for Find Your Financial Advisor, financial advisor service for doctors.
Doximity emphasized 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 stated. “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 also stresses the importance of raising awareness regarding this issue.
“One of the most critical steps to closing the physician gender pay gap is raising awareness of its existence,” Doximity wrote. “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 data from 2023 indicates a narrowing pay gap, with male doctors averaging $400,000 and female doctors averaging $310,000, a $90,000 difference.
Despite these concerns about fair pay, physicians remain among the highest-paid professionals in the US. USA Today reported in late 2024 that 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 Average Doctor Salary
While the average doctor’s salary is often cited around $363,000, this figure provides limited practical value.
For instance, Doximity’s latest report states that the average pediatric endocrinologist earns $217,875 annually, while the average neurosurgeon earns $763,908. This represents a staggering difference of over $546,000. Comparing these two specialties using a general average doctor salary is essentially meaningless. Furthermore, the 2024 Medscape survey indicates an average salary of $277,000 for primary care physicians versus $394,000 for specialists – another significant disparity. For a more insightful understanding of physician compensation, focusing on specialty-specific data is crucial.
Refer to Resolve rData — Resolve’s proprietary data from thousands of contract submissions. Explore on the Resolve rData homepage.
Intraspecialty vs. Interspecialty Doctor Salary Variation
Dr. Jim Dahle has frequently noted that pay variation within a specialty (intraspecialty) is often greater than the variation between specialties (interspecialty).
As Dr. Dahle illustrated in a previous post, the 2015 emergency medicine salary survey below demonstrates this point. While the salary figures are dated, the principle remains relevant.
Alternative text: Chart from 2015 emergency medicine salary survey showing salary percentiles.
Dr. Dahle explained:
“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 Salary Per Hour
While physician income data is readily available, information on physician work hours is less accessible. The only source combining both is a JAMA survey from 2003, utilizing older data.
The following physician salary per hour chart combines JAMA data with Medscape’s 2024 survey data, adjusted for reported work hour reductions per specialty. This chart makes the assumption that all physicians work 48 weeks annually. Where Medscape data was unavailable, less reliable sources were used (marked with an asterisk).
Alternative text: Chart showing estimated hourly doctor salary by medical specialty based on blended data sources.
Doctor Salary by Medical Specialty
Salary surveys, while informative, can vary significantly. Average specialty pay can differ across different surveys. Before examining Doximity’s specialty-specific numbers below, compare them with the 2024 Medscape survey data.
Alternative text: Chart from Medscape 2024 Physician Compensation Report showing average annual earnings by specialty.
Medscape reports an average of $261,000 for infectious disease doctors, while Doximity reports $314,000 – a nearly 17% difference. For orthopedists, Medscape lists $558,000, and Doximity reports $654,000, a 14.6% difference. This variation presents challenges for new graduates or doctors negotiating contracts. What data should they rely on? Furthermore, what if a physician’s specialty, such as neurosurgery or cardiothoracic surgery, isn’t covered by Medscape or Doximity? Should they invest in MGMA data or hire a contract management firm? And is that data inherently more reliable?
For further exploration, here are individual specialties examined in the Medscape 2023 survey, detailing average income and physician perception of fair compensation:
Highest Paying Doctor Specialties
The Doximity survey highlights 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 data:
Alternative text: Chart from Doximity 2024 Physician Compensation Report showing top 20 highest paid doctor specialties.
Lowest Paying Doctor Specialties
The following specialties represent the lower end of the physician salary spectrum:
Alternative text: Chart from Doximity 2024 Physician Compensation Report showing bottom 20 lowest paid doctor specialties.
It’s important to note that these charts represent the top 20 highest and lowest average doctor salaries. Specialties like psychiatry, neurology, and geriatrics fall within a mid-range, with average salaries between approximately $289,000 and $348,000.
Medscape’s 2024 survey also provides insights into specialties with the largest salary increases and decreases:
Alternative text: Chart from Medscape 2024 Physician Compensation Report showing medical specialties with largest salary increases and decreases.
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?
Doctor Salary Variations by State
Geographic arbitrage, practicing in a lower cost-of-living area with potentially higher salaries due to greater physician demand, can be a strategy for achieving financial independence. Medscape data from 2023 suggests this is more than just a theory.
Alternative text: Chart from Medscape 2023 Physician Compensation Report showing states with highest average physician salaries.
The cost of living in major cities like New York City is significantly higher than in states like Wisconsin. The fact that physicians in Wisconsin may earn more than their counterparts in New York City supports the concept of geographic arbitrage.
Doctor Salary Based on Employment Setting
A physician’s employment setting also significantly impacts their income. Doximity’s survey data reveals a potential salary difference of nearly $173,000 per year in 2024 between physicians in single-specialty groups and those working in urgent care centers.
- Single Specialty Group: $461,000 (5.0% increase year-over-year)
- Multi-Specialty Group: $447,000 (6.1% increase year-over-year)
- Solo Practice: $443,000 (3.5% increase year-over-year)
- Hospital: $428,000 (5.8% increase year-over-year)
- Health System/IDN/ACO: $427,000 (7.0% increase year-over-year)
- Health Maintenance Organization: $406,000 (4.9% increase year-over-year)
- Academic: $365,000 (5.2% increase year-over-year)
- Urgent Care Center/Chain: $288,000 (9.1% increase year-over-year)
- Government: $292,000 (8.6% increase year-over-year)
For strategies to increase your income within your specialty, explore Jim’s insights.
For comprehensive data, refer to the full Doximity report, which includes details on physician compensation across metro areas, cities with the fastest-growing salaries, and the effects of physician shortages. For comparison, see Medscape’s Physician Compensation 2024 Report.
What are your thoughts on these physician salary trends? Are any of these figures surprising? Have you discovered ways to boost your income within your specialty?
[This updated article was originally published in 2022.]
