Here’s five things trends dominating physician employment right now:
1. Corporate ownership is up. As of Jan. 1, physician practice ownership by payers, private equity firms and large pharmacy chains hit 30.1%, surpassing ownership by hospitals and health systems for the first time. UnitedHealth Group’s Optum is the largest employer of physicians, with over 90,000 employed or affiliated physicians.
2. Shortages persist. Forty percent of active physicians in the U.S will be over 65 in the next 10 years, according to a 2021 report by the Association of American Medical Colleges. One report from the AAMC suggests that there could be a shortage of up to 86,000 physicians by 2036.
3. More physicians seeking employed positions. Over 77% of U.S physicians are employed by a hospital, health system or corporate entity, according to an Avalere study sponsored by the Physicians Advocacy Institute. Younger physicians in particular are seeking employment. According to Medscape’s 2023 "Young Physician Compensation Report," 85% of physicians 40 and younger work for an employer.
4. Burnout is high, and it’s pushing physicians out of the industry. Sixteen percent of female physicians and 14% of male physicians said their burnout was so severe that they were considering leaving healthcare, according to Medscape’s "Physician Burnout & Depression Report" for 2024. Around 26% are considering shifting from their roles as physicians to other non-clinical careers, according to Medscape’s "Physicians and Nonclinical Careers Report 2023."
5. Self-employed physicians are earning more than employed physicians. Self-employed positions make an average of $374,000, which is 8.7% higher than their employed counterparts, who earn an average of $344,000 per year, according to a 2023 compensation report from Medscape.