For physician recruiters, it's essential to understand physician compensation and to have a plan to meet the evolving demands. Doximity’s 2024 Physician Compensation Report provides key insights about compensation trends, plus data on critical challenges facing the physician workforce, including the physician shortage. Here are 9 insights from the report that will help physician recruiters market your job opportunities more effectively and ensure you’re extending competitive offers to recruit and hire physicians. 

After several years of modest or declining growth, the average pay for doctors increased nearly 6% in 2023, rebounding from a decline of 2.4% in 2022. While this physician compensation growth appears strong, significant economic factors, such as Medicare physician payment cuts in the wake of 40-year high inflation rates, are likely to continue impacting physicians’ real income. According to the American Medical Association, Medicare physician payment has dropped 26% since 2001 when adjusted for inflation.

1. Top Paying Metro Areas. Physicians in the San Jose, California metropolitan area experienced the largest increase in compensation, with an average annual growth rate of 13.5%. Among the 50 metropolitan areas studied, eight saw average physician compensation increase by more than 10%. Thirty metro areas saw growth rates above 6%. This starkly contrasts the flat to declining growth rates observed in 2022, when most of the top 10 metro areas struggled to reach growth rates beyond 3%, and only one area managed to surpass the 6% mark. With San Jose in the lead position, the next top 5 cities with the HIGHEST average compensation are:
   
             - Los Angeles, CA - $448,121
             - St. Louis, MO - $442,576
             - Sacramento, CA - 440,004
             - Minneapolis, MC - 438,756
             - San Francisco, CA - 437,628
   
   It’s important to note that while physicians saw an increase in average compensation last year overall, the cost of living remains a crucial factor impacting a physician’s real income. This growth is a step in the right direction, but these increases don’t come close to keeping pace with inflation.
   
   
2. Top Paid Specialties. Consistent with previous years, the 20 specialties with the HIGHEST average annual compensation include surgical and procedural fields focused on treating adult patients. Pediatric and primary care specialties also continue to be among the lowest-paid specialties. Here are the top five:
   
             - Neurosurgery: $763,908
             - Thoracic Surgery: $720,634
             - Orthopaedic Surgery: $654,815
             - Plastic Surgery: $619,812
             - Oral & Maxillofacial Surgery: $603,623
   
   
3. 23% Gender Wage Gap Remains Substantial. In 2023, the gender pay gap for physicians decreased to 23%, marking a slight improvement from the 26% reported in 2022 and 28% reported in 2021. Despite this progress, the pay gap remains significant, with women physicians earning nearly $102,000 less than men physicians each year, on average, after controlling for specialty, location, and years of experience. An analysis of Doximity’s physician compensation data from 2014-2019 estimated that over the course of a career, men physicians make over $2 million more than women physicians.
   
   In 2023, none of the medical specialties studied had equal or higher earnings for women physicians compared to men. All specialties had gender pay gaps exceeding 8%, with the exception of three: Medical Genetics (3.5%), Hematology (4.3%), and Occupational Medicine (6.5%).
   
   Despite the significant gender pay gap, nearly half of physicians surveyed (48%) are either uncertain about the gender pay gap or do not believe there is a disparity, and gender appears to impact this belief. While nearly 75% of women physicians surveyed believe there is a pay disparity, fewer than 30% of men physicians also believe this is true.
   
   
4. Salary and Compensation Satisfaction. While the gender wage gap remains significant, both men and women physicians reported similar levels of satisfaction or dissatisfaction with their compensation. More than 39% of women physicians are satisfied or very satisfied with their compensation, compared to about 40% of men. Similarly, 35% of both men and women physicians said they are dissatisfied or very dissatisfied with their compensation.
   
   Many physicians also feel that their pay does not match the effort and expertise required in their roles, a significant majority of those surveyed (63%) have either not succeeded in their attempts to negotiate or have not attempted to negotiate at all. Only 5% of physicians surveyed have negotiated and were fully successful.
   
   
   
5. The Importance of Autonomy and Work-Life Balance. Rather than negotiate a raise in salary, many physicians might be willing to accept lower compensation for more autonomy or work-life balance. In a Doximity poll of over 2,500 physicians, 75% reported they would be willing to accept, or have already accepted, lower compensation for more autonomy or work-life balance, up from 71% last year. While a greater proportion of women than men physicians said they have already accepted, or would be willing to accept, lower pay to achieve more autonomy or work-life balance (81% of women respondents, compared with 72% of men), this trend appears to have gained favor among men physicians over the last year.
   
   
6. Overwork and Burnout. The majority of physicians say they’re overworked and are considering an employment change. According to the U.S. Surgeon General, even before the COVID-19 pandemic, 54% of physicians and nurses were experiencing burnout. In a recent Doximity poll of over 2,600 physicians, four out of five physicians (81%) reported they are overworked, with nearly three out of five (59%) considering an employment change. These figures are down slightly from 86% of physicians who reported feeling overworked in 2022, but a substantial increase from 73% in 2021.
   
   
7. Opportunities to Improve Physician Overwork and Burnout. Although various factors are contributing to the burnout crisis, administrative burden continues to be one of the most significant drains on physicians' time and energy. Research indicates that for every hour of direct patient care, physicians spend nearly two additional hours on EHR and desk work during the clinical day, with another one to two hours on clerical tasks each night. 
   
   Doximity asked physicians what changes could meaningfully improve physician overwork and burnout. Here are their responses:
   
   
   
8. The Physicians Shortage and its Impact. Among physicians surveyed, 88% of physicians said that their clinical practice is impacted by the shortage, with 74% describing the shortage as “moderate” or “severe.” Also, 86% said they are concerned about the U.S. health care system’s ability to care for an aging population.
   
   Additionally, as a direct result of the physician shortage, the majority of physicians (67%) said they have experienced overwork or burnout, 60% reported diminished job satisfaction, and 54% reported experiencing a deteriorating workplace culture.  
   
   Physicians indicated a number of adverse effects on patients, as well. A significant portion of  physicians surveyed believe the shortage has led to:
   
             - Longer wait times (87%)
             - Reduced access to care (75%)
             - Increased health care disparities (75%)
             - Patient frustration (74%)
             - Delayed treatment (70%)
             - Worse or preventable outcomes (42%)
             - Later-stage diagnoses (36%)
   
   
9. Strategies to alleviate the physician shortage. Despite the gravity of the physician shortage issue, only 3% of physicians surveyed reported they feel adequately supported by healthcare institutions and policymakers. Reducing administrative burden is crucial, but respondents suggested other systemic solutions, including a diminished supply of physicians (66%), staffing challenges (65%), greater patient needs (56%), lack of care team support (42%), and health care consolidation (39%).
   

Doximity’s 2024 Physician Compensation Report provides clinicians with the information they need to make important career decisions and also provides recruiters with the knowledge they need to support and guide physician candidates. You can read the full report here.