Physicians are seeing slower pay growth in the last year amid economic uncertainty, according to Medscape’s “Physician Compensation Report 2025.”
The company surveyed 7,322 physicians across 29 specialties from Oct. 3, 2024 to Jan. 15, 2025, and found compensation increased around 3.6% on average for physicians, which was the lowest growth rate since 2011 when Medscape first began reporting compensation.
Pay gains were around 1.4% for primary care physicians, hitting $281,000 last year, and 1% for specialists, hitting $398,000. Pay growth was the lowest since 2021 at the height of the pandemic. The pay figures cover base salary, incentive bonus and other income including profit-sharing.
“Specialists’ compensation was squeezed by payer reimbursement cuts, and we saw fewer specialties reporting pay increases than in several years,” the report states. “Nor was it a banner year for primary care physicians. With a lot of uncertainty in the political and regulatory arenas, and the post-COVID salary spending seemingly done, it seems like a good time for physicians to be careful with their expenses.”
One physician told Medscape their income continues to drop because CMS cuts pay for services every year.
Orthopedic surgeons had the highest average pay at $543,000 while radiology came in second with $520,000 average salary. Anesthesiologists reported around $499,000 average pay last year.
Nearly half, 43%, said their compensation remains the same while 28% said it increased by 10% or less. Eleven percent of respondents said their pay dropped by 10% or less; overall, 18% said their pay dropped last year. The specialists overall reporting pay drops include:
1) Dermatology: 11% drop
2) Neurology: 6% drop
3) Urology: 6% drop
4) Plastic Surgery: 4% drop
5) Cardiology: 4% drop
6) Ophthalmology: 4% drop
Around 53% of physicians said they feel underpaid or were not fairly paid relative to their jobs, but 71% said their total compensation covers living expenses, debt and retirement savings.
