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By Josh Katzowitz, WCI Content Director
Recent surveys indicate a positive shift in Medical Doctors Pay in 2023, following a year of salary decline. However, a significant portion of physicians still feel that their compensation doesn’t adequately reflect their demanding work and extensive training. This article delves into the latest physician compensation reports, exploring the trends, disparities, and key factors influencing medical doctors’ earnings in the US.
According to the 2024 Medscape Physician Compensation Report, physician compensation in the United States experienced a roughly 3% increase in 2023. This marks a recovery from the previous year’s 2.4% decrease. Primary care physicians saw a slightly higher rise at 4%, while specialists across over 29 analyzed specialties experienced a 3% growth. Despite this positive movement, Medscape notes that physician pay raises still lag behind the approximate 4% average increase seen among non-unionized US employees in 2023.
The 2024 Doximity Physician Compensation Report corroborated this upward trend, reporting a 6% increase in physician pay after the 2.4% drop the year before. Nevertheless, Doximity highlights that when adjusted for inflation, Medicare physician payments have actually decreased by 26% since 2001.
Doximity’s report states:
“While [the 2024] increase appears to be a step in the right direction, inflationary pressures continue to impact physicians’ real income.”
In 2022, soaring inflation, peaking at 9.1% that summer, significantly eroded physician income and purchasing power. This inflationary pressure likely contributed to a decrease in doctor’s net worth, particularly as both stock and bond markets performed poorly that year. However, the economic landscape shifted in 2023 with inflation stabilizing and the S&P 500 registering a substantial 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 saw a smaller increase of only 1.81% during the same period.
Despite the overall pay increase, physician sentiment regarding their compensation remains mixed.
Medscape’s survey revealed that 61% of doctors believe physicians, in general, are underpaid, while 34% consider their pay to be fair. Only 5% believe doctors are overpaid. Interestingly, when compared to a 2021 survey of the general American public, only 11% of respondents believed doctors were underpaid. When Medscape survey participants were asked about their own pay, 49% felt underpaid.
One physician respondent aptly stated:
“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 Doximity survey from August 2022, involving over 1,000 doctors, found that 55% are responding to the economic climate by either delaying retirement (approximately 40%) or reducing expenses (around 15%). Doximity noted that older physicians nearing retirement age are more inclined to delay retirement, but a significant portion of physicians in their 30s and 40s are also considering postponing their retirement.
Doximity’s most recent data, compiled from 33,000 US physicians, shows a slight narrowing of the gender pay gap to 23% in 2023. This is a decrease from 26% in 2022 and 28% in 2021. In 2023, male doctors earned approximately $102,000 more annually than their female counterparts, compared to a $110,000 difference in 2022 and $122,000 in 2021. This persistent pay disparity may contribute to higher rates of physician burnout, particularly among women.
Image alt text: Financial Fitness for Physicians advertisement banner, promoting financial planning services for doctors.
“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 underscores the importance of raising awareness about the gender pay gap in medicine as a crucial step toward addressing it.
“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 a similar gender pay gap, with male doctors averaging $400,000 and female doctors averaging $310,000 – a $90,000 difference.
Despite these disparities and concerns about fair compensation, it’s important to acknowledge that medical doctors remain among the highest-paid professionals in the United States. 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 Average Doctor Salary
While the average doctor’s salary is often cited around $363,000, this figure provides limited practical value due to the vast variations in pay across specialties.
For instance, the latest Doximity report indicates that the average pediatric endocrinologist earns $217,875 annually, while the average neurosurgeon makes $763,908. This represents a staggering difference of over $546,000. Similarly, Medscape’s 2024 survey reports an average salary of $277,000 for primary care physicians compared to $394,000 for specialists – a substantial difference. Therefore, understanding salary variations across specialties is crucial for medical professionals.
For a clearer picture of compensation across different medical fields, the Medscape Physician Compensation Report 2024 offers a detailed breakdown:
Medscape Physician Compensation Report 2024
Image alt text: Medscape 2024 Physician Compensation Report chart, visually presenting average annual salaries for various medical specialties.
Examining average salaries within specific specialties offers far more relevant insights for doctors than a generic average physician salary.
For deeper data insights, Resolve rData provides proprietary data from thousands of contract submissions. Explore further on the Resolve rData homepage.
Intraspecialty vs. Interspecialty Pay Variation
Dr. Jim Dahle has consistently emphasized the significant pay variation within the same medical specialty, often exceeding the variation between different specialties.
As Dr. Dahle illustrated in a previous article using a 2015 emergency medicine salary survey, substantial pay gaps exist even within a single specialty. While the salary figures are dated, the principle of intraspecialty pay variation remains highly relevant.
Image alt text: 2015 emergency medicine salary survey chart, illustrating the wide range of salaries within the emergency medicine specialty, from the 10th to 90th percentile.
Dr. Dahle noted:
“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 overall physician income data is readily available, information on physician work hours is less accessible. A JAMA survey from 2003 provides some of the only combined data on physician work hours and income, albeit based on older data.
The following chart estimates physician salary per hour by combining the JAMA data with Medscape’s 2024 survey data, adjusted for reported work hour variations across specialties. This chart assumes a 48-week work year for all physicians. Data points marked with an asterisk (*) rely on less reliable sources where Medscape data was unavailable.
Image alt text: Chart displaying estimated hourly physician pay across various medical specialties, derived from combined JAMA and Medscape survey data.
Doctor Salary by Medical Specialty
Salary surveys often present varying average specialty pay figures. Comparing data from different surveys, such as Doximity and Medscape, reveals these discrepancies. Let’s compare the 2024 Medscape survey with Doximity’s findings.
Image alt text: Medscape 2024 Physician Compensation Report chart showcasing and comparing average yearly earnings for doctors in different medical specialties.
For example, Medscape reports an average salary of $261,000 for infectious disease doctors, while Doximity cites $314,000 – a nearly 17% difference. Similarly, for orthopedists, Medscape reports $558,000, whereas Doximity indicates $654,000, a 14.6% higher figure. This significant variation poses challenges for new graduates or doctors negotiating contracts. While Doximity data might seem advantageous during negotiations, the lack of data for certain specialties in both Medscape and Doximity reports raises questions about data sources. MGMA data, accessible through paid subscriptions or contract management firms, represents another data source, but its superiority over survey data remains debatable.
Medscape’s 2023 survey provides further specialty-specific insights into doctor’s income and their perceived fairness of compensation:
Highest-Paying Doctor Specialties
Doximity’s survey highlights surgical and procedural specialties as the highest-earning fields, while primary care and pediatrics tend to be among the lower-paying specialties.
Here are the top-earning specialties according to Doximity’s 2024 report:
Image alt text: Doximity 2024 Physician Compensation Report chart, presenting a ranked list of the 20 highest-paying medical specialties in the United States.
Lowest-Paying Doctor Specialties
Conversely, here are the specialties with the lowest average salaries, according to Doximity:
Image alt text: Doximity 2024 Physician Compensation Report chart, displaying a ranked list of the 20 lowest-paying medical specialties in the US.
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 the mid-range, with average salaries between approximately $289,000 and $348,000.
Medscape’s 2024 survey also provides data on which specialties are experiencing the largest salary increases and decreases:
Image alt text: Medscape 2024 Physician Compensation Report chart, illustrating medical specialties with the largest increases and decreases in average salaries.
Despite a decline in popularity, emergency medicine continues to see salary growth, 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 while earning a higher salary driven by greater physician demand, can be a strategy for enhancing financial independence. Medscape’s 2023 data appears to support the viability of geographic arbitrage.
Image alt text: Medscape 2023 Physician Compensation Report chart, highlighting US states with the highest average physician salaries, suggesting geographic pay variations.
The significantly higher cost of living in cities like New York City compared to states like Wisconsin underscores the financial advantage of practicing in lower cost areas with competitive salaries. The fact that physicians in Wisconsin may earn more than their counterparts in New York City lends credence to the geographic arbitrage concept.
Doctor Salary by Employment Setting
The employment setting significantly impacts a doctor’s earning potential. Doximity’s survey data reveals substantial salary differences across various practice environments. In 2024, the pay difference between single-specialty groups and urgent care centers can reach nearly $173,000 annually.
- Single Specialty Group: $461,000 (5.0% increase from last year)
- Multi-Specialty Group: $447,000 (6.1% increase from last year)
- Solo Practice: $443,000 (3.5% increase from last year)
- Hospital: $428,000 (5.8% increase from last year)
- Health System/IDN/ACO: $427,000 (7.0% increase from last year)
- Health Maintenance Organization: $406,000 (4.9% increase from last year)
- Academic: $365,000 (5.2% increase from last year)
- Urgent Care Center/Chain: $288,000 (9.1% increase from last year)
- Government: $292,000 (8.6% increase from last year)
For strategies to potentially increase your income within your specialty, Dr. Jim Dahle offers valuable insights and ideas.
For a comprehensive understanding of physician compensation trends, explore the complete Doximity report, which includes data on metropolitan area compensation, cities with the fastest-growing salaries, and the effects of physician shortages. For comparison, refer to Medscape’s Physician Compensation 2024 Report.
Are you surprised by any of these salary figures? Have you discovered effective methods to increase your income within your specialty?
[This updated article was originally published in 2022.]
