Physician pay rises 3%, though discontent persists

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Total physician compensation saw a modest 3% growth in 2023, increasing from an average of $352,000 to $363,000, yet despite the increase, dissatisfaction over pay persists, according to the latest findings of the 2024 Medscape Physician Compensation Report.

Any contentment about their compensation gains was undercut by the effects of high inflation rates throughout 2023 and Medicare reimbursement cuts.

The report found 61% of doctors believe their profession is generally underpaid in the U.S. and 51% feel personally underpaid relative to their job duties. And as in previous years, there was a gender disparity in physician compensation, with male physicians earning approximately 29% more than their female counterparts, underscoring ongoing concerns regarding pay equity within the medical profession. 

Over the previous year, the gender gap declined slightly for primary care physicians, but widened slightly for specialists.

There were also notable trends in racial and ethnic compensation disparities. Compensation for African American and Black physicians grew more than twice as fast as for any other racial or ethnic group. However, they are still the lowest compensated group, earning $37,000 on average less than white doctors.

WHAT'S THE IMPACT?

Specialized doctors earned $117,000 more on average than their primary care counterparts, the report found. Orthopedics, plastic surgery and cardiology emerged as the top three compensated specialties, with physiatrists and neurologists experiencing the biggest one-year gain in compensation. 

Infectious disease, pediatric and diabetes-endocrinology physicians reported the lowest levels of compensation.

West North Central states such as Iowa, Nebraska, North Dakota and South Dakota reported the highest earning compensation (more than $400,000), while Mid-Atlantic states such as New York, New Jersey and Pennsylvania reported the lowest compensation at $351,000.

Medscape Reports executive editor Jon McKenna said the report offers a comprehensive view of the evolving physician compensation landscape.

"From gender and racial disparities to the influence of economic factors, these insights provide valuable context for understanding the challenges and opportunities facing physicians today," he said.

THE LARGER TREND

A 2023 Medical Group Management Association report found that physician compensation was on the rise but not keeping pace with inflation. 

Although growth in median total compensation for primary care providers doubled from 2021 to 2022, from 2.13% to 4.41% respectively, it couldn't overtake inflation rates of 7% and 6.5%.

Compensation growth depended on the physician specialty. Over the past three years, urgent care physicians saw compensation rise .13%, while family medicine practitioners, not including obstetrics, saw a 10.57% increase.
 

Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.