
Comparing Physician Compensation and Hospital Revenues
Cortney Ikpe
Recent data shows that Sixty-four percent of physicians are now employed in hospital settings, so it's increasingly important for physicians to have a keen understanding of how their presence affects their hospital's bottom line.
Knowing how your compensation stacks up against your value to the hospital is one of the best ways to negotiate a competitive and fair contract. Check out these statistics, compiled by Becker's Hospital Review, on physician compensation and hospital revenues:
Invasive Cardiologists:
Median revenue: $2,619,643
Median compensation: $519,000
Non-Invasive Cardiologists:
Median revenue: $1,232,142
Median compensation: $396,000
Orthopedic Surgeons
Median revenue: $2,683,510
Median compensation: $519,000
Family Practitioners
Median revenue: $2,067,567
Median compensation: $189,000
General Surgeons
Median revenue: $1,860,655
Median compensation: $343,000
Neurosurgeons
Median revenue: $1,684,523
Median compensation: $669,000
Obstetricians and Gynecologists
Median revenue: $1,439,024
Median Compensation: $268,000
Urologists
Median revenue: $1,428,030
Median compensation: $461,000
Psychiatrists
Median revenue: $1,302,631
Median compensation: $224,000
Gastroenterologists
Median revenue: $1,385,714
Median compensation: $433,000
Pulmonologists
Median revenue: $1,009,868
Median compensation: $321,000
Otolaryngologists
Median revenue: $825,757
Median compensation: $412,000
Pediatricians
Median revenue: $787,790
Median compensation: $189,000
Neurologists (non-surgical)
Median revenue: $691,406
Median compensation: $280,000
Ophthalmologists
Median revenue: $725,000
Median Compensation: $295,000
Internal Medicine Physicians
Median revenue: $1,843,137
Median compensation: $203,000
Hematologists/Oncologists
Median revenue: $1761,029
Median compensation: $360,000
Data Limitations
Though this data strongly suggests that many physicians bring in much more than they are paid, it is inherently limited. First, all data is from hospitals, and the value of doctors working in clinics and private practices can shake out much differently. Factors such as geographic location, local demand, your clinic's reputation, and similar issues may more strongly determine your starting wages.
Additionally, there are issues of competition to take into account. Even if you work in a high-value specialty, if there are numerous other physicians available in that same specialty, you're easily replaced. Before you try to use the amount you offer the hospital as leverage during pay negotiations, make absolutely certain you know that someone else isn't gunning to replace you the second you balk at the first offer.
Negotiating a Better Wage
If you want to negotiate a better wage, consider the discrepancy between how much your specialty brings in and how much you're paid, particularly if you already know that you bring in higher-than-average revenues. For example, the data suggests that many family medicine physicians could negotiate a much higher wage than they're currently receiving.
If you are unhappy with your pay, it is best to consult a physician contract attorney to review your contract. Resolve's attorney team has negotiated over $1 billion in physician contracts and can answer every question you may have about your contract.
Keep in mind that these numbers are national, not by location. Additionally, it's not just how much you bring in that matters. It's also how hard doctors like you are to get. Specialties that are in high demand typically come with higher wages and more negotiation power, particularly if you have a strong reputation and excellent training.
» More: Have your contract reviewed.