Physicians finding ways to earn secondary income
Consulting was the top source of secondary income for physicians, followed by teaching, clinic work and serving as an expert witness.
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In 2022, 34% of physicians earned income from a source outside their practice, the highest percentage since statistics started being tracked in 2017, indicating a rising trend of medical professionals pursuing extracurricular moneymaking opportunities.
The data, published by Medical Economics, showed that consulting was the top source of secondary income for physicians, followed by teaching.
Rounding out the top 10, in descending order, are clinic work, speaking, serving as an expert witness, market research, non-ER hospital work, medical administrator, nursing home work and clinical trials/research.
The average amount of secondary income in 2022 was slightly different depending on specialty. Those in internal medicine made an average of $54,000 on top of their base salaries. For those in family medicine, the figure was $49,000; for those in pediatrics, $22,000. OB-GYNs made $36,000 on top of their regular salaries, on average.
WHAT'S THE IMPACT
The survey also tasked physicians with gauging their overall financial state, and while 19% said they were faring better financially than they were a year ago, 33% said they were faring worse, while 48% said they were doing about the same.
The top reasons for financial improvement included seeing more patients, increased revenue from telehealth, receiving pay-for-performance incentives, a change in practice model and renegotiated payer contracts.
Meanwhile, the top reasons things got worse include higher overhead, more time spent on uncompensated tasks, lower reimbursement, lost revenue and increased expenses due to COVID-19, and higher technology costs.
About 47% of physicians said they have an ownership stake in their practice. Fifty-three percent do not.
The survey also identified several issues currently plaguing physicians, including paperwork burden and third-party interference, such as with prior authorizations. Physicians also decried lack of staffing, burnout, inadequate reimbursement and electronic health records as sources of concern and frustration.
Luckily for them, though, average income across several specialties rose across the board. Internal medicine physicians made $44,000 more on average in 2022, while OB-GYNs made $15,000 more. Family medicine and pediatric physicians made $5,000 and $6,500, respectively, more on average. Men made an average of $85,500 more than women in 2022.
When asked what they would do if they could go back in time and choose their career again, 56% of respondents said they would choose the same specialty. Twenty-one percent said they'd choose a different specialty, while 19% said they'd pick a different career altogether.
THE LARGER TREND
Physician compensation is on the rise but not keeping pace with inflation, according to the Medical Group Management Association's 34th annual DataDive Provider Compensation report released in May.
Although growth in median total compensation for primary care providers doubled from 2021 to 2022, from 2.13% to 4.41%, 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, realized a 10.57% increase.
Physician-owned practices reported higher levels of productivity compared to their counterparts at hospital-owned practices. The difference in total collections ranged from $96,580 to $172,221 between PCPs, surgical and non-surgical specialists, and advanced practice providers.
Twitter: @JELagasse
Email the writer: Jeff.Lagasse@himssmedia.com
