Physician Compensation on the Rise, But Gender Wage Gap Widens

April 15, 2019 - Since 2015, physician compensation for primary care physicians (PCPs) and specialists increased by 21.5 percent and 20 percent, respectively, revealed a new survey of nearly 20,000 physicians in more than 30 specialties.

Medscape’s “Physician Compensation Report: 2019” found that PCPs made an average of $237,000 in 2019, including salaries, bonuses, and profit-sharing contributions, as well as earnings after taxes and deductible business expenses before income taxes for partners.

Specialists earned significantly more, with average annual compensation reaching $341,000 in 2019, the survey showed.

The finding that PCPs earned less than specialists is not surprising. Specialists perform procedures with higher reimbursement rates and the physicians go through additional years of training to enter a specific field of medicine.

However, the survey did uncover something more controversial. The difference between what male physicians earned compared to their female counterparts increased in 2019, with male primary care physicians reporting annual compensation that was 25 percent higher.

The gender wage gap appears to be widening in 2019, the survey showed. In 2018, male primary care physicians only earned 18 percent more than females, and they earned 16 percent more in 2017 and 17 percent more in 2016, the survey showed.

Male specialists also received greater income than female specialists in 2019. But this year, male specialists earned 33 percent more versus 36 percent more the previous year.

Female physicians continue to gravitate towards fields that make less income overall. For example, female physicians accounted for less than one-fifth of doctors in some of the highest paid specialties, such as orthopedics, plastic surgery, urology, and cardiology.

However, researchers pointed out that “the preponderance of women in lower-paying specialties doesn’t explain the pay disparity within each specialty.”

The gender wage gap has been a persistent problem for the healthcare industry. While some research shows the gap is starting to narrow, most evidence shows that the difference between what male and female physicians make is still significant.

The gender wage gap among other complaints prompted the same organization that fought sexual assault and harassment in Hollywood to create a healthcare division, researchers pointed out. Time’s Up launched its healthcare arm in 2019 to promote gender equity in the industry.

But pay rates are not the only difference between male and female physicians, according to the survey. In addition to gender pay disparity, the survey also uncovered that male physicians spent more time with their patients than female physicians.

Male primary care physicians and specialists spent nine percent more time with their patients, respectively. For primary care physicians, that translated to four more hours a week and three more hours a week for specialists.

While female physicians report less face time with patients, they are dedicating slightly more hours to administrative work compared to their male peers. The survey found that female primary care physicians spent two more hours a week on paperwork and administration, while female specialists spent one more hour per week.

The survey uncovered a slight difference between males and females when it comes to administrative duties. But the survey highlighted how both male and female physicians are spending more time on paperwork compared to previous years.

In Medscape’s 2012 physician compensation report, the majority of physicians (53 percent) said they spent between one and four hours on paperwork per week, with another 13 percent dedicating five to nine hours a week.

By 2019, the majority of physicians (74 percent) spent over ten hours per week on paperwork and administration, and over one-third of the respondents cited over 20 hours, the most recent survey uncovered.

Hours spent on paperwork and administration are increasing as physicians are forced to handle evolving payment models and additional regulations surrounding reform.

According to the survey, rules and regulations were the top challenge physicians faced in 2019, followed by having to work with an EHR system and working long hours.

More physicians are participating in value-based reimbursement models, which come with substantially more rules for payment compared to the relatively straightforward fee-for-service system.

The percentage of physicians in an accountable care organization (ACO) increased from three percent in 2011 to 36 percent in 2017, the survey found. The percentage of physicians in an ACO actually dropped to 28 percent in 2019, but researchers attributed the decline to physicians evaluating their value-based contracts.

“The challenges that doctors are experiencing in their professional lives are persistent and concerning,” Leslie Kane, MA, senior director of Medscape Business of Medicine, stated in a press release. “Gender disparities remain an issue, and there have been startling increases in administrative tasks.”