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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.