Physician compensation in 2024

For the survey, Modern Healthcare analyzed data from 10 staffing and consulting firms.

Overall, the median physician compensation in 2024 was $467,198, an almost 8% increase from the median compensation of $433,066 in 2023.

Physicians in orthopedic, invasive cardiology, plastic surgery, and urology specialties had the highest compensation on average, which ranged from $489,000 to $789,298 annually. In comparison, those in pediatric or family medicine specialties had the lowest average compensation, making between $244,000 and $326,661 annually. 

According to Modern Healthcare, some employers are now moving away from pay scales, which are based on productivity, to salary models, which are based on years of services.  

In a separate survey from AMN Healthcare, 62% of physicians said they had employment contracts with a base salary and bonuses based on productivity. However, physicians in certain specialties, such as primary care, gastroenterology, and neurology, have expressed discontentment with productivity-based wage models.

"There definitely seems to be a movement in primary care, certainly in other specialties, to change the model and take them off production," said Chad Stutelberg, national managing director at Gallagher. "Because if there's one thing we've learned [through the pandemic] it's that production is not a perfect model. It has its challenges, so some organizations are moving to salary models."

How employers are trying to attract physicians

Higher salaries and other financial incentives, such as stipends, tuition reimbursement, and housing bonuses, continue to be a key part of organizations' recruitment and retention efforts.

According to Leah Grant, president of Physician Permanent Solutions at AMN Healthcare, some employers are also offering additional stipends to residents and fellows before they complete their programs. These stipends offer money to residents and fellows in exchange for a commitment to join an employer once they complete their training.

Some organizations are also offering new bonuses based on a physician's years of service.

"That's something new," Fred Horton, president of AMGA Consulting. "It used to be that once you got to a certain level, your compensation stayed the same regardless of years of service. But we're starting to see organizations say they're going to have a retention bonus, and that can fit into recruitment as well, because it's the whole package."

However, financial incentives are not the only way organizations are trying to improve their physician recruitment and retentions.

According to several consulting firms, some physicians are focusing more on workplace issues, such as culture and operating environment. In some cases, physicians say that the reputation of an organization is more important than the compensation they receive.

"I think in the physician arena, we've lost some of that," Stutelberg said. "If you look at those who are successful, like the Cleveland Clinic, Mayo [Clinic], Geisinger, these big, well-known [organizations] have traditions. They have that culture."

Employers have also begun offering more day-to-day nonmonetary benefits, such as more flexible schedules, additional vacation times, and fewer on-call requirements. Some employers are also offering physicians contracts that provide them with a reduced workload, which is designed to help avoid burnout.

"There was a tremendous amount of burnout during the pandemic," said Dave Hesselink, managing principal at SullivanCotter. "Since the pandemic subsided, we've seen folks either leave the workforce or contract the number of hours they're willing to work. So, that has resulted in compensation increases [because] now, another way to attract physicians in some specialties is to say, 'We'll pay you at a market-competitive rate, but you have to work less,' or perhaps, 'Your on-call expectations are less.'"

Meanwhile, more physicians are moving away from private practice ownership and toward employment, which could create more financial pressures for healthcare organizations. Many physicians have also sold their practices to private equity companies, which could lead to more competition for employers looking to hire physicians.

"Between 2019 and 2022, there was a 9% increase in the number of hospital-owned physician practices, but in the same time frame, there was an 86% increase in the number of corporate-owned physician practices," Grant said. "The acquisition of physician practices, primarily by private equity companies, has just been so accelerated, especially during the pandemic when many private practice groups were seeking additional financial resources." (DeSilva, Modern Healthcare, 10/7; Modern Healthcare 2024 Physician Compensation survey, accessed 10/7)

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