Physician Compensation Survey Reveals "Disappointing" Income Levels
Career satisfaction decreases while overhead costs increase

Baltimore, Maryland — July 13, 2006 — The average take home pay of physicians surveyed across all primary-care specialties is roughly $150,000 a year, and more than half of these doctors say they are “disappointed” with their income relative to their work efforts, according to the first annual Merritt Hawkins/Physicians Practice Physician Compensation Survey.

"It's good times, bad times for primary care physicians today," says Joseph Hawkins, CEO of Merritt, Hawkins & Associates. "Primary care doctors have plenty of job offers, but they also are under a great deal of stress in an increasingly problematic medical environment."

Doctors are not only forced to pay operating expenses out-of-pocket – including overhead costs like staff salaries, benefits, telecommunications, and rent/lease costs. They’re also forced to pay strict attention to the amount of patients they’re bringing in to counterbalance the weight of practice expenses.

“This balancing act is pushing them to see more patients each day, and become more strict on patient collections,” says Pamela L. Moore, PhD, CPC, senior editor of practice management for Physicians Practice. “It’s also pushing their career satisfaction levels to a steep decline.”

Most doctors surveyed expect overhead costs to get worse over the next five years. Twenty-two percent “are doubtful” of their ability to sustain operating expenses, while seven percent “will not be able” to within this timeframe. Today, overhead costs for a small minority of physicians actually exceed their income – these doctors are losing money each year.

In line with its mission to help physicians manage the increasing costs of running medical practices to improve patient care, Physicians Practice teamed with Merritt, Hawkins & Associates, one of the country’s largest physician recruitment firms, to examine the future of primary care as a whole, physician compensation levels, and individual career satisfaction. Among the survey results:

• Nearly 30 percent of physicians surveyed report they are already “too busy.”
  
• More than 61 percent of internists surveyed are disappointed with their incomes, compared with 53 percent of pediatricians, and 49 percent of family physicians.
  
• Signs of a primary-care shortage abound; 26 percent of physicians report receiving recruitment calls four to six times a month.
  
• Only 37.6 percent of those surveyed would again choose primary care if they could start over, and 28.6 percent indicate they would not choose to go into medicine at all.
  
• Of the specialties surveyed, pediatricians claim the highest levels of career satisfaction. More than 28 percent are “very satisfied” with their careers, compared with 18.7 percent of internists, and 24.9 percent of family practitioners. Pediatricians feel this way even though they earn the lowest pay, and are in the least demand.