How Much Money Does a Doctor Make a Year?

Introduction

For many, becoming a doctor is an attractive career choice due to its high salaries and prestige. But how much money does a doctor make a year? The answer isn’t as straightforward as it may seem. According to the U.S. Bureau of Labor Statistics (BLS), the average annual salary for physicians in 2019 was $220,942.

However, there can be significant variations in the amount of money that doctors make each year depending on their specialty, experience level, and geographic location. In this article, we’ll explore the factors that affect a doctor’s income and provide strategies for maximizing earning potential as a physician.

Exploring the Variations in Physicians’ Salaries by Specialty

The median annual wages of physicians vary significantly by specialty. According to the Medical Group Management Association’s (MGMA) Physician Compensation and Production Survey, the highest-paid specialties are orthopedic surgery ($482,000), plastic surgery ($471,000), cardiology ($441,000), radiation oncology ($440,000), and gastroenterology ($420,000). Meanwhile, the lowest-paid specialties include family medicine ($233,000), internal medicine ($242,000), pediatrics ($250,000), psychiatry ($269,000), and obstetrics/gynecology ($310,000).

Factors That Affect a Doctor’s Income

How Experience and Education Impact a Doctor’s Paycheck

In addition to specialty, a doctor’s experience and educational background can also influence their salary. According to the BLS, physicians with more than 20 years of experience earn an average of $240,000 per year, while those with 10–19 years of experience make $214,000 annually. On the other hand, physicians with less than five years of experience earn an average of $175,000 per year.

Physicians who have completed additional training or certifications may also be able to boost their earnings. For example, the MGMA survey found that surgeons who had completed a fellowship earned an average of $7,000 more than those who had not.

The Role of Location and Practice Type in Setting a Physician’s Salary

Location is another important factor when it comes to physician salaries. According to the BLS, the states with the highest average salaries for physicians are Alaska ($286,000), North Dakota ($273,000), Montana ($272,000), South Dakota ($270,000), and Wyoming ($269,000). Conversely, the states with the lowest average salaries for physicians are Mississippi ($191,000), Arkansas ($192,000), New Mexico ($193,000), Oklahoma ($194,000), and Alabama ($196,000).

The type of practice can also impact a physician’s salary. For instance, according to the MGMA survey, physicians working in solo practices earn an average of $260,000 per year, while those employed by multispecialty groups earn an average of $294,000 annually. Additionally, physicians who work in academic settings tend to earn less than those in private practice.

The Impact of Technology on Physician Compensation

Technology is also playing an increasingly important role in setting physician salaries. According to a study published by the American Medical Association, physicians who use electronic health record systems and data analytics to track patient outcomes tend to earn higher salaries than those who do not. Furthermore, physicians who are comfortable using telemedicine technology may be able to command higher salaries due to the increased demand for such services.

Strategies to Maximize Your Earning Potential as a Doctor

Pursue Additional Training and Certifications

One way to increase your earning potential as a physician is to pursue additional training and certifications. For example, completing a fellowship in a specialized field can give you a competitive edge and potentially lead to higher salaries. Additionally, pursuing board certification in your specialty may also be beneficial, as it can demonstrate your expertise and help you stand out among your peers.

Choose a High-Paying Specialty

Another way to maximize your earnings as a doctor is to choose a high-paying specialty. As demonstrated above, some specialties like orthopedic surgery and plastic surgery offer significantly higher salaries than others. However, it’s important to note that choosing a specialty based solely on salary can be shortsighted. You should also consider factors such as job satisfaction and lifestyle preferences when selecting a specialty.

Relocate to an Area with Higher Salaries

If you’re willing to relocate, you may be able to take advantage of higher salaries in certain areas. For example, as previously mentioned, the average salary for physicians in Alaska is significantly higher than the national average. Similarly, some metropolitan areas like New York City and San Francisco offer higher salaries than other parts of the country.

Negotiate Your Compensation Package

Finally, don’t be afraid to negotiate your compensation package. While it’s true that physicians typically earn higher salaries than many other professions, there’s still room for negotiation. It’s important to research the going rate for your specialty in your area and be prepared to back up your request with evidence of your qualifications and experience.

Conclusion

As this article has demonstrated, the amount of money that a doctor makes each year can vary significantly depending on a number of factors, including specialty, experience level, geographic location, and practice type. Furthermore, physicians can take steps to maximize their earning potential by pursuing additional training and certifications, choosing a high-paying specialty, relocating to an area with higher salaries, and negotiating their compensation package.