Are U.S. physicians overpaid?

It's important to consider context before proclaiming that physicians in the U.S. are overpaid, Kevin Pho, MD — founder of KevinMD.com —writes in a USA Today opinion piece.

It may seem like physician pay is exceptionally high. Internal medicine physicians have a starting median compensation of $190,000, and starting salaries for specialists and anesthesiologist reach close to $300,000, according to the Medical Group Management Association. Some have pointed to physician salaries as a notable driver of healthcare costs in the U.S. For instance, Sarah Kliff of Vox has written that physician salaries "are a pretty significant part of the reason why the United States spends more per person on health care than any other developed country."

However, Dr. Pho writes physicians aren't as well-paid as others in the top 5 percent income bracket in the U.S. (which includes, for instance, business executives and lawyers). A Journal of Economic Perspectives paper published in 2011 found that, for general practitioners, the ratio of incomes for U.S. physicians to that of other high-earners was 0.92.

Furthermore, Dr. Pho writes it's important to consider the "significant financial capital" required to become a practicing physician (the median four-year tuition of a private U.S. medical school is $286,806, and physicians need to complete a three- to seven-year residency before practicing independently). And, Princeton economist Uwe Reinhardt has estimated physician salaries only account for 10 percent of total healthcare costs.

"Those who want to bring the earnings of U.S. doctors in line with those of Europe must also offer government-subsidized medical education and nationally regulated medical malpractice systems that many European nations enjoy," Dr. Pho writes. "Better yet, stop targeting physicians, and focus on other factors that have a much bigger impact on health costs, such as wasteful spending and administrative overhead."

More articles on physician pay:
New Mercy Health pay model faces opposition from some physicians
Valuation of physician employment contracts: Q&A with VMG Health's Jonathan Helm
5 key provisions in a successful physician employment contract 

 

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