Average pay for physicians rose in 2024, a new Medscape report has found, but at 3.6% it's one of the lower raises since the company began tracking physician compensation in 2011, and the overall sentiment among physicians regarding fair compensation is declining.
Specifically, primary care physicians saw an average pay increase of only 1.4%, while specialists experienced an even smaller increase of 1%. These were the lowest raises recorded since the 2021 report, which was published during the height of the COVID-19 pandemic.
The findings also reveal a widening gender pay gap among physicians, which Medscape said highlights the importance of promoting equitable pay across all demographics. Male physicians made an average of $415,000 in 2024, compared with $317,000 for women, a 24% difference.
WHAT'S THE IMPACT
Compensation for primary care doctors, on average, rose from $277,000 to $281,000, while specialist pay rose from $394,000 to $398,000, although more specialties reported pay drops as opposed to pay increases.
Pathologists and diabetes and endocrinology specialists were the specialties with the biggest pay increases, at 8% each. Infectious disease specialists and anesthesiologists saw a 6% gain, and nephrologists saw their pay bumped by 5%.
Dermatologists, however, reported an average 11% cut, while neurologists and urologists saw their compensation cut 6%. Cardiologists, plastic surgeons and ophthalmologists all saw 4% cuts.
Overall, 43% of physicians said their compensation didn't change from 2022 to 2023. Forty percent reported an increase, but of those, 28% said their pay increased by 10% or less.
Orthopedists and orthopedic surgeons ranked highest among average annual compensation at about $543,000, with radiology ($520,000), plastic surgery ($516,000) and cardiology ($506,000) not far behind. Public health and preventive medicine, at $257,000, ranked the lowest, with family medicine, diabetes and endocrinology, infectious diseases and rheumatology also ranking near the bottom of the list.
In all, just 47% of physicians surveyed said they feel fairly compensated for their work. About 40% are seeking paid work outside of their primary roles, the survey found.
THE LARGER TREND
A May 2024 MGMA report found the year-over-year rise in physician compensation was due largely to increases in productivity and the use of artificial intelligence.
Primary care, surgical specialty and nonsurgical specialty physicians in independent practices all reported higher median work relative value units (work RVUs) in 2023 versus 2022.
Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.