What are physician salaries like in 2024? Discover the average earnings, highest-paid specialties, and how location and work setting affect physician compensation. Read on to explore trends and disparities in the medical field. Additionally, locum tenens physicians, who work on a temporary basis, often earn more than their employed peers, highlighting another aspect of physician compensation.
Article Highlights
The average physician salary in the U.S. is projected at $368,000 for 2024, reflecting a 3% increase from the previous year, although inflation affects real income.
Neurosurgery, orthopedic surgery, and plastic surgery are the top earning medical specialties in 2024, with average salaries of $1,075,000, $729,000, and $717,000 respectively.
A notable gender pay gap persists among physicians, with women earning on average $102,000 less than their male counterparts, despite a slight decrease in the wage gap from 26% to 23%.
Locum tenens physicians, who work on a temporary basis, tend to earn more than their employed counterparts, with significant regional hiring trends in various metro areas.
Average Physician Compensation in 2024
Physician compensation has seen a notable shift in 2024, with the average salary in the U.S. projected to be $368,000. This figure marks a moderate increase compared to previous years, reflecting a 3% rise from the prior year. Despite the upward trend, inflation continues to impact the real income of physicians, slightly dampening the perceived gains.
The median physician salary for 2024 stands at $321,000, showcasing a slight disparity between the median and average figures, which is often influenced by the top earners in the field. In fact, average physician income across all providers in 2024 is $363,000, illustrating the broader spectrum of earnings in the medical profession. Locum tenens physicians, who work on a temporary basis, often fall within the higher earning spectrum, further influencing the average compensation figures.
In 2023, physician compensation saw a significant increase of nearly 6%, following a decline of 2.4% in 2022. This fluctuation underscores the dynamic nature of physician salaries and the various economic factors at play. As we delve deeper into the specifics, the data reveals even more about the highest and lowest earning medical specialties and other influential factors.
Top Earning Medical Specialties
Before:
When it comes to top earning medical specialties, neurosurgery, orthopedic surgery, and plastic surgery consistently take the lead. In 2024, the average salary for neurological surgeons is projected at an impressive $1,075,000, followed by orthopedic surgeons at $729,000, and plastic surgeons at $717,000. These numbers not only reflect the high demand for these specialties but also the extensive training and critical nature of their work.
After:
The top earning medical specialties are:
Neurosurgery – Average salary projected at $1,075,000 in 2024
Orthopedic Surgery – Average salary projected at $729,000
Plastic Surgery – Average salary projected at $717,000
These numbers reflect the high demand for these medical specialty areas as well as the extensive training and critical nature of their work.
The healthcare industry recognizes the complexity and volume of work involved in these specialties, which is why they command such high compensation. For instance, plastic surgeons often perform intricate procedures that require precision and skill, which justifies their substantial earnings. Similarly, orthopedic and neurological surgeons handle critical cases that directly impact patients’ quality of life, further elevating their compensation levels.
These highest paid specialties showcase the financial rewards that come with specialization and expertise. However, this perspective should be balanced by considering the specialties that do not command such high salaries, which we will explore next.
Lowest Paid Medical Specialties
Contrasting the top earners, pediatricians and family medicine practitioners often find themselves at the lower end of the compensation spectrum. In 2024, pediatricians are averaging salaries around $248,000, while family medicine practitioners earn similarly modest incomes compared to their surgical counterparts. These specialties are crucial to the healthcare system, yet their compensation reflects the less procedural nature of their work.
Adolescent medicine physicians report some of the lowest average salaries, approximately $200,000, highlighting a significant pay gap within the medical profession. Similarly, specialists in diabetes, endocrinology, and infectious diseases also fall into the lower salary ranges. The financial disparity between procedural and non-procedural specialties is a significant factor influencing these earnings.
Public health and preventative medicine, though essential, are recognized for their lower compensation levels, primarily due to the lack of high-paying procedures in these fields. This disparity underscores the broader challenges within the healthcare industry, where primary care roles are often less financially rewarding despite their critical importance.
Gender Pay Gap Among Physicians
The gender pay gap among physicians remains a pervasive issue, albeit with some improvements. In 2023, the wage gap decreased to 23% from 26% in 2022, yet women physicians still earn, on average, $102,000 less than their male counterparts each year. This disparity is further highlighted by the fact that male physicians earn approximately 31% more than female physicians on average.
The perception of this pay gap varies significantly between genders. Nearly 75% of female physicians believe there is a gender pay disparity, in stark contrast to less than 30% of male physicians. Overall, 52% of surveyed physicians acknowledge the existence of a gender pay gap, indicating widespread recognition of this issue within the medical community.
Specialties with the least gender pay gaps include Medical Genetics, Hematology, and Occupational Medicine. While the trend of narrowing the gender pay gap is promising, ongoing efforts are needed to sustain and accelerate this progress. The healthcare industry must continue addressing these disparities to ensure fair compensation for all medical professionals.
Regional Variations in Physician Salaries
Geographic location plays a pivotal role in determining physician salaries. In 2024, the highest-paying metro area for physicians is Charlotte, with an average salary of $430,890. Regions like St. Louis also rank high, especially when adjusted for cost of living, showcasing how economic factors can influence overall earnings. These cities have consistently emerged as top earners, reflecting regional demand and compensation trends.
On the other end of the spectrum, metro areas such as Washington, DC, and Baltimore are among the lowest-paying regions for physicians. The East Coast, in general, continues to have lower average salaries compared to other regions, highlighting significant regional disparities. Job listings for locum tenens physicians are particularly prevalent in high-demand metro areas, further influencing regional salary trends. Cities experiencing population decline often align with lower physician salaries, further emphasizing the economic influences on compensation.
Rural areas often compensate physicians better than urban locations, due to higher demand and fewer amenities. Physicians in the Western U.S. generally earn more than their counterparts in the Southern and Eastern regions, underscoring the importance of geography in physician compensation. These regional variations are influenced by factors such as cost of living, demand for healthcare services, and physician shortages.
Impact of Practice Setting on Physician Pay
Before: The setting in which physicians practice significantly impacts their compensation. Hospital-employed, non-academic physicians earn an average salary of $409,000, making them some of the highest earners among practice settings. Physicians in solo private practice, without private equity backing, earn slightly less, averaging $390,000. Physicians in corporate groups without private equity support earn an average salary of $379,000. This amount reflects their earnings within that specific structure.
After: The setting in which physicians practice significantly impacts their compensation. Here are the average salaries based on different practice settings:
Hospital-employed, non-academic physicians: $409,000
Physicians in solo private practice (without private equity backing): $390,000
Physicians in corporate groups (without private equity support): $379,000
This amount reflects their earnings within that specific structure.
Single specialty groups, multi-specialty groups, and solo practices are among the top practice settings for physician compensation. Compensation for physicians in solo practices and HMOs increased in 2023, indicating higher earning potential in these environments. In contrast, multi-specialty and single specialty groups saw no increase in physician compensation during the same period.
Despite these variations, there was positive growth in physician compensation across most practice settings in 2023, with annual rates exceeding 5%. This trend highlights the diverse opportunities within different practice environments and how they can influence overall earnings.
The Influence of Work Hours on Physician Earnings
Work hours are a significant determinant of physician earnings. Physicians working more than 50 hours a week tend to earn higher compensation compared to those working fewer hours. Specialties that involve longer work hours generally report higher average incomes, reflecting the correlation between workload and earnings.
Full-time physicians working 36 or more hours a week earn an average salary of $385,000, while those working 41-45 hours a week earn about $369,000. Physicians working 51-60 hours a week see even higher earnings, averaging $445,000. Notably, over 30% of physicians work more than 60 hours a week, further emphasizing the link between extensive work hours and higher compensation.
The significant impact of weekly working hours on a physician’s hourly rate cannot be overstated. An increasing number of physicians are reducing their hours, potentially leading to a rise in overall earnings as they seek better work-life balance. This trend underscores the importance of managing workload to optimize both compensation and job satisfaction.
Trends in Physician Bonuses and Incentives
Bonuses and incentives play a crucial role in physician compensation. As of 2022, 57% of surveyed physicians indicated that their income included an incentive bonus component. Primary care physicians, in particular, received an average incentive bonus of $33,500, with 53% reporting such bonuses. These incentives are widespread across all specialties, highlighting their significance in overall compensation.
The trend of offering signing bonuses has also seen a notable increase. In 2022, 92% of job-seeking candidates were offered a signing bonus, with the average reaching $31,000 and some as high as $400,000. The most recent average signing bonus recorded for physicians in 2023 was $37,473, reflecting the competitive nature of the healthcare job market.
Relocation allowances and quality-based incentives further enhance compensation packages. In 2021/2022, 78% of physicians received a relocation allowance averaging $10,718. Quality-based incentives, though less emphasized than in previous years, constituted 11% of total physician compensation when included as part of production bonuses. These trends demonstrate the evolving landscape of physician compensation, where bonuses and incentives play a pivotal role in attracting and retaining talent.
How the Physician Shortage Affects Salaries
The ongoing physician shortage has a profound impact on salaries. Driven by an aging physician workforce and stringent medical school admission processes, the shortage is projected to range between 37,800 and 124,000 physicians by 2034. This shortage significantly influences compensation trends across various specialties, as regions with fewer physicians often offer higher salaries to attract talent.
Physician shortages have led to increased bargaining power for salaries, with 67% of physicians feeling overworked due to the shortage. This overwork negatively impacts patient care, as physicians reported by 82% of physicians, underscoring the urgent need for more physicians. Consequently, regions facing severe shortages are likely to offer elevated salaries, particularly in rural areas where demand is highest.
Healthcare organizations are responding to these recruitment challenges by including continuing medical education (CME) payments in new offers, with 92% of offers incorporating such benefits. This approach highlights the broader strategies employed to mitigate the effects of the physician shortage on salaries and ensure quality staffing.
The Role of Procedures in Determining Physician Income
Procedural specialties typically earn more than non-procedural specialties due to insurance reimbursement structures. Physicians in fee-for-service models can significantly influence their earnings based on the number of procedures they perform. For example, Medicare pays physicians for procedural services at rates significantly higher than for cognitive services, with screening colonoscopy earning 368% and cataract extraction earning 486% more than cognitive care.
This disparity is particularly evident in specialties such as gastroenterology, where physicians can earn almost four times more for performing a procedure than for evaluating the need for that procedure. The financial incentives associated with procedural work underscore the importance of understanding how different types of medical services impact overall earnings.
These dynamics highlight the broader trends in physician compensation, where procedural work often leads to higher incomes. This understanding is crucial for physicians considering their career paths and for healthcare administrators planning compensation structures.
Job Satisfaction and Compensation
Job satisfaction among physicians is significantly influenced by their compensation. Despite lower salaries, many physicians in non-procedural specialties report high levels of job satisfaction and fulfillment. Around 68% of psychiatrists, for instance, feel their compensation is fair, which is among the highest satisfaction levels for any specialty.
The ability to help patients is a key rewarding aspect of the profession, with 24% of physicians surveyed citing gratitude from patients as a significant factor in their job satisfaction. However, the pressures of overwork and the perceived mismatch between compensation and expertise lead nearly half of physicians to consider a career change or early retirement.
Despite these challenges, many physicians actively seek different compensation options to achieve a better work-life balance. Approximately 75% believe that reducing administrative tasks can help manage their workload. These insights underscore the complex relationship between compensation, job satisfaction, and overall well-being in the medical profession.
COVID-19 Impact on Physician Compensation and Well-being
The COVID-19 pandemic has had a profound impact on physician compensation and well-being. According to a survey by Medscape, a staggering 72% of physicians reported a reduction in income in 2021. This financial strain was compounded by operational challenges, with 43% of physicians having to work with reduced staff and 8% even closing their practices. However, the tide began to turn by 2022, as hiring increased to address long-term health challenges and the needs of an aging population.
The pandemic’s impact extended beyond financial aspects, deeply affecting physicians’ personal lives and mental health. Many physicians reported heavier workloads, with the added stress contributing to burnout. In fact, more than 38% of physicians surveyed expressed a desire to retire within the next year, citing burnout and dissatisfaction with work conditions as primary reasons.
Despite these significant challenges, a substantial number of physicians still find their work rewarding and feel that their salary is fair. However, there remains a notable portion of the medical community that feels undercompensated and dissatisfied with their work environment. This dichotomy highlights the complex landscape of physician compensation and well-being in the post-pandemic era.
Methodology: Data Collection and Analysis
The data for this report was meticulously collected through a comprehensive survey of over 7,000 physicians across 29 specialties. Conducted by Medscape in 2023, the survey delved into various aspects of physician compensation, including income, hours worked, satisfaction with compensation, and the broader challenges faced within the profession.
To ensure robust and reliable results, the data was analyzed using a multivariate regression model. This model included controls for provider specialty, metro area, and gender, as well as the length of time each provider has practiced medicine and their self-reported average hours worked per week. This rigorous approach allowed for a nuanced understanding of the factors influencing physician compensation.
The data collection process was facilitated via SurveyMonkey, encompassing approximately 150,000 compensation surveys over the past five years. Each survey was completed by full-time U.S. physicians who practice at least 40 hours per week, ensuring a representative sample of the medical profession.
Additionally, the analysis incorporated the 2022 regional price parities of metro state areas published by the Bureau of Economic Analysis. This consideration of regional economic factors provided a more accurate reflection of compensation trends across different geographic locations. The study was conducted in February and March 2024, with data collection and analysis designed to offer a comprehensive overview of physician compensation in the current landscape.
Summary
In conclusion, physician compensation in 2024 is shaped by various factors, including specialty, geographic location, practice setting, and work hours. The ongoing physician shortage continues to impact salaries, driving regional variations and influencing compensation structures. Locum tenens physicians, who work on a temporary basis, also play a significant role in the overall landscape of physician compensation, often earning more than their employed peers. Despite improvements, the gender pay gap remains a significant issue, requiring ongoing efforts to ensure fair compensation for all medical professionals.
Understanding these dynamics is crucial for physicians navigating their careers and for healthcare administrators planning effective compensation strategies. By staying informed about the latest trends and data, medical professionals can make better decisions to enhance their earnings and job satisfaction.
Frequently Asked Questions
What is the average physician compensation in 2024?
The average physician compensation in 2024 is projected to be $368,000, while the median salary is estimated at $321,000. This indicates a solid earning potential within the profession. Locum tenens physicians, who work on a temporary basis, often earn higher salaries, contributing to the overall average compensation figures.
Which medical specialties are the highest paid in 2024?
In 2024, neurosurgery, orthopedic surgery, and plastic surgery are the highest paid medical specialties, with salaries reaching approximately $1,075,000, $729,000, and $717,000, respectively. These figures highlight the significant earning potential in these fields.
How significant is the gender pay gap among physicians?
The gender pay gap among physicians is still substantial, with female physicians earning, on average, $102,000 less annually than their male counterparts. This disparity highlights the ongoing challenges of achieving pay equity in the medical profession.
How does geographic location affect physician salaries?
Geographic location plays a crucial role in determining physician salaries, with areas like Charlotte offering significantly higher compensation, averaging $430,890, compared to lower-paying regions such as Washington, DC, and Baltimore. This disparity underscores the importance of location in career planning for physicians. Job listings for locum tenens physicians are particularly prevalent in high-demand metro areas, further influencing regional salary trends.
What role do bonuses and incentives play in physician compensation?
Bonuses and incentives play a significant role in physician compensation, with 57% of surveyed physicians receiving incentive bonuses in 2022. These additional forms of compensation, including signing bonuses and relocation allowances, can enhance overall earnings and attract talent.
