Physician Salary and Compensation
[Modern Trends and Approaches]
By Brian J. Knabe
By David Edward Marcinko
By Hope Rachel Hetico
Physician compensation is a contentious issue and often much fodder for public scrutiny. Throw modern pay for performance [P4P] metrics into the mix and few situations produce the same level of emotion as doctors fighting over how a seemingly collegial employment contract should be interpreted. This situation often springs from a failure of both sides to understand mutual compensation terms-of-art when the deal was negotiated.
Therefore, the following physician salary and compensation information is offered as a reference point for further individual investigations.
More than a decade ago, Fortune magazine carried the headline “When Six Figured Incomes Aren’t Enough. Now Doctors Want a Union.” To the man in the street, it was just a matter of the rich getting richer. The sentiment was more precisely quantified by Dr. David E. Marcinko in a March 31, 2005 issue of Physician’s Money Digest, who reported that a 47-year-old doctor with $184,000 in annual income would need about $5.5 million dollars for retirement at age 65.
Of course, physicians were not complaining under the traditional fee-for-service system; the imbroglio began when managed care adversely impacted incomes. Rightly or wrongly, the public has little sympathy for affluent doctors.
Today, the situation is vastly different with the financial markets collapse and specter of pubic health insurance and reform, as medical professionals struggle to maintain adequate income levels. While a few specialties flourish, others, such as primary care, barely move. In the words of Atul Gawande, MD, a surgeon and author from Brigham and Women’s Hospital in Boston, “Doctors quickly learn that how much they make has little to do with how good they are. It largely depends on how they handle the business side of practice.”
And so, it is critical to understand contemporary thoughts on physician compensation and related salary trends.
More here: ORDER: http://www.springerpub.com/shoppingcart
Dictionary of Health Economics and Finance: http://www.springerpub.com/prod.aspx?prod_id=02549
Physician Compensation: Salary Survey
Rich Doctors Slide Show: rich-doctors
How Doctor’s Get Paid: How Doctors Get Paid in 2010