Even before graduation, many future physicians have a number hanging over their heads that influences their chosen specialty: debt accrued throughout their medical education, the American Medical Association stated in a Nov. 12 blog post.
A recent AMA report notes the amount of debt for about 50 percent of physicians is more than $200,000; for 80 percent of physicians, that figure exceeds $100,000.
The organization outlined five things future physicians should keep in mind to maximize their earnings over the course of their careers:
1. Most residents won't maximize their earning potential until after they complete their graduate medical education. First-year residents typically earn about $60,000 and maintain an even pay scale until they complete their residencies.
2. Surgical specialties typically pay more. A recent CNBC report indicated surgeons make roughly $252,000 annually, while pediatricians make approximately $173,000 per year.
3. Higher-paying specialties often require more training. Primary care specialty physicians often earn less than surgeons, but also require less training. Students in some primary care programs can complete medical school and residency in roughly six years, allowing them to pay off their medical school debt and earn more money faster by spending less time as a resident.
4. Location matters. The AMA cited a recent Medscape survey that ranked annual pay for physicians in different states. While a state's average physician compensation may be high, future physicians must also factor in the state's cost of living.
5. Practice ownership may lead to higher earnings. The AMA notes physicians who were self-employed or who owned a stake in their practice earned about $50,000 more than their counterparts who were employed by a practice or hospital. However, the organization also noted financial and operating risks may come with practice ownership.
To access the full report, click here.