Private practice physicians earn big compared to employed counterparts

Self-employed physicians earn more than employed physicians overall, according to Medscape's "Physician Compensation Report 2023." 

Here are three more notes on employed physician pay versus private practice physicians:

1. Self-employed physicians reported $374,000 on average, compared with $344,000 for employed physicians, according to the Medscape report. 

2. Physicians can earn big in ancillary revenue as a private practice physician. 

"Ancillary service revenue can reflect up to 50% to 60% of a private practicing physician's income, which, unfortunately, short of gain-sharing opportunities or partial ASC ownership, is usually unavailable in large healthcare system-employed practice situations," Jack Bert, MD, orthopedic surgeon at Woodbury (Minn.) Bone & Joint, told Becker's.

3. Single-specialty, solo practice and multispecialty groups are the highest-earning physician employment settings, according to Doximity's 2023 Physician Compensation Report

 

Physician compensation growth across employment settings from 2021 to 2022:

  • Single specialty group: $438,959 (-0.7%)
  • Solo practice: $428,112 (+3%)
  • Multispecialty group: $421,159 (-0.7%)
  • Health system: $400,207 (+1.4%)
  • Hospital: $398,954 (-0.1%)
  • Industry/pharmaceutical: $392,534 (-0.8%)
  • HMO: $387,393 (+3.4%)
  • Academic: $347,013 (-0.9%)
  • Government: $269,189 (+1.8%)
  • Urgent care center: $264,727 (-1%)



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