How Much Money Does A Doctor Make A Year In The USA?

How much money does a doctor make a year? The answer varies depending on the specialty, location, and employment setting, but money-central.com is here to break down the numbers to give you a clear financial picture. Understanding these factors can help you make informed decisions about your career path and financial planning, ensuring a secure financial future and explore the wealth management avenues. Let’s delve into the earning potential, salary expectations, and compensation strategies for doctors in the USA.

1. Understanding Physician Compensation in the USA

Physician compensation is a complex topic influenced by numerous factors. Several reports provide insights into doctor salaries, but they often present varying figures. Let’s delve into the key aspects of physician compensation and explore the different reports available, with a focus on how these numbers can be interpreted and utilized effectively.

1.1. Factors Influencing Doctor’s Annual Income

Several factors influence how much money a doctor makes a year. These include:

Specialty: Certain specialties, like neurosurgery and orthopedic surgery, command higher salaries than primary care specialties like pediatrics and family medicine.
Location: Geographic location plays a significant role, with some states and regions offering higher compensation due to demand and cost of living.
Experience: As with most professions, experience level impacts earning potential. More experienced doctors typically earn more than those just starting their careers.
Employment Setting: The type of practice (e.g., private practice, hospital, academic institution) also affects income.
Gender: Despite progress, a gender pay gap persists in medicine, with male doctors generally earning more than their female counterparts.

1.2. Key Reports on Physician Salaries

Several organizations publish reports on physician compensation, each with its own methodology and data sources. Some of the most well-known include:

Medscape Physician Compensation Report: An annual survey that collects data from thousands of doctors across various specialties. The Medscape report is widely cited and offers a comprehensive overview of physician salaries.
Doximity Physician Compensation Report: This report leverages data from Doximity’s network of physicians, providing insights into compensation trends and the gender pay gap.
MGMA Provider Compensation Data Report: MGMA (Medical Group Management Association) offers detailed compensation data based on practice performance and management benchmarks. This report is particularly useful for understanding compensation in different practice settings.

1.3. Comparing Salary Data from Different Sources

When comparing salary data from different sources, it’s important to consider the following:

Sample Size: Larger sample sizes generally lead to more reliable data.
Methodology: Understand how the data was collected and analyzed. Surveys, claims data, and practice management data can all yield different results.
Specialty Definitions: Ensure that the specialties being compared are defined consistently across reports.
Year of Data: Use the most recent data available, as compensation trends can change over time.

For instance, the Medscape 2025 Physician Compensation Report indicated that the average physician compensation was $376,000, while the Doximity 2024 Physician Compensation Report showed a 6% increase in physician pay. Understanding these differences helps in forming a well-rounded view of physician compensation.

1.4. The Reality of Average Doctor Salary

Understanding how much money a doctor makes a year, the average doctor salary of $376,000, as reported by Medscape, isn’t always useful due to wide variations in specialty and location. A pediatric endocrinologist may earn significantly less than a neurosurgeon, highlighting the importance of considering specialty-specific data.

1.5. Intraspecialty vs. Interspecialty Pay

Intraspecialty pay variation can be higher than interspecialty pay variation. For example, the difference between the 10th percentile for employed emergency medicine physicians and the 90th percentile for partners can be substantial. This highlights the impact of factors like experience, employment model, and negotiation skills on a doctor’s income.

2. Doctor Salary by Medical Specialty

One of the most significant factors determining how much money a doctor makes a year is their medical specialty. Certain specialties require more extensive training, involve higher levels of risk, or are in greater demand, leading to higher compensation. Here’s a detailed look at doctor salaries by specialty.

2.1. Highest-Paid Specialties

Surgical and procedural specialties typically dominate the list of highest-paid doctors. These fields often involve complex procedures and require extensive training, leading to higher earning potential.

According to Doximity’s 2024 report, the top-earning specialties include:

Neurosurgery: Neurosurgeons consistently rank among the highest-paid doctors, with an average annual salary exceeding $760,000. The complexity and high-risk nature of neurosurgical procedures contribute to this high compensation.
Thoracic Surgery: Thoracic surgeons, who specialize in surgeries of the chest and lungs, also earn substantial incomes, often averaging over $700,000 per year.
Orthopedic Surgery: Orthopedic surgeons, focusing on musculoskeletal conditions, typically earn between $600,000 and $700,000 annually, depending on their subspecialty and practice setting.
Plastic Surgery: Plastic surgeons, particularly those specializing in cosmetic procedures, can earn high incomes, often averaging over $550,000 per year.
Vascular Surgery: Vascular surgeons, who treat conditions of the blood vessels, also command high salaries, generally earning between $500,000 and $600,000 annually.

2.2. Lowest-Paid Specialties

Primary care and pediatric specialties tend to be among the lowest-paid in medicine. While these fields are crucial for overall healthcare, they often involve less specialized procedures and have lower reimbursement rates.

According to Doximity’s 2024 report, the lowest-earning specialties include:

Pediatrics: Pediatricians earn an average annual salary of around $250,000. Despite the importance of their role in child healthcare, pediatricians often face lower reimbursement rates compared to specialists.
Family Medicine: Family medicine physicians, who provide comprehensive care to patients of all ages, typically earn between $250,000 and $300,000 per year.
Internal Medicine: Internal medicine physicians, who focus on the diagnosis and treatment of adult diseases, generally earn between $260,000 and $320,000 annually.
Preventive Medicine: Doctors in preventive medicine, who focus on promoting health and preventing disease, often earn salaries in the range of $200,000 to $300,000 per year.
Pediatric Endocrinology: Specialists in pediatric endocrinology may earn around $217,875 annually, reflecting the lower end of the compensation scale.

2.3. Factors Affecting Specialist Salaries

Several factors can influence a specialist’s salary, including:

Demand: Specialties in high demand, such as oncology and cardiology, often command higher salaries.
Complexity: Procedures and treatments that require advanced skills and knowledge tend to be compensated at a higher rate.
Reimbursement Rates: Government and private insurance reimbursement rates can significantly impact a specialist’s income.
Location: Specialists practicing in underserved areas or high-cost-of-living regions may receive higher compensation.
Practice Setting: Specialists in private practice may have higher earning potential compared to those employed by hospitals or academic institutions.

2.4. Salary Trends by Specialty

Salary trends can vary by specialty, influenced by factors such as changes in healthcare policy, technological advancements, and shifts in patient demographics. Understanding these trends can help doctors make informed career decisions and negotiate fair compensation.

According to Medscape’s 2025 survey, some specialties have seen significant increases in compensation, while others have experienced declines. Specialties that have seen recent increases include:

Urology: Increased demand and advancements in minimally invasive procedures have contributed to higher salaries for urologists.
Gastroenterology: The growing prevalence of digestive disorders has led to increased demand for gastroenterologists, driving up compensation.
Anesthesiology: The demand for anesthesiologists remains high due to the increasing number of surgeries and procedures performed annually.

Specialties that have seen declines in compensation include:

Radiology: Changes in reimbursement models and increasing competition have put downward pressure on radiologist salaries.
Pathology: Automation and consolidation in laboratory services have impacted the demand for pathologists, leading to lower compensation.
Emergency Medicine: Overcrowding and reimbursement challenges in emergency departments have affected the earning potential of emergency medicine physicians.

2.5. How Much Do Doctors Make an Hour?

Calculating how much money a doctor makes a year on an hourly basis can provide a clearer picture of their compensation, accounting for the hours they work. This calculation can be challenging, as physician work hours can vary significantly by specialty and practice setting.

Based on data combining the JAMA survey and Medscape’s 2025 survey, hourly rates can vary widely. For example, a high-paying specialist working long hours may earn upwards of $300 per hour, while a primary care physician with a more balanced schedule may earn closer to $100 to $150 per hour.

3. Doctor Salary by Location

Geographic location significantly impacts how much money a doctor makes a year. Factors such as cost of living, demand for physicians, and reimbursement rates vary by state and region, influencing compensation levels.

3.1. States with the Highest Physician Salaries

Some states offer higher physician salaries due to a combination of factors, including high demand, lower cost of living, and favorable reimbursement policies.

According to recent data, the states with the highest average physician salaries include:

North Dakota: High demand and a relatively low cost of living make North Dakota an attractive location for physicians seeking higher compensation.
South Dakota: Similar to North Dakota, South Dakota offers competitive salaries and a manageable cost of living.
Montana: The need for physicians in rural areas of Montana drives up compensation levels.
Wyoming: Wyoming’s sparse population and high demand for medical services contribute to higher physician salaries.
Alaska: The remote nature of Alaska and the challenges of practicing medicine in the state result in higher compensation for physicians.

3.2. States with the Lowest Physician Salaries

States with lower physician salaries often have a higher supply of physicians, lower cost of living, or less favorable reimbursement policies.

The states with the lowest average physician salaries include:

Rhode Island: A high concentration of physicians and a relatively low cost of living contribute to lower salaries in Rhode Island.
New York: Despite the high cost of living in New York City, the state’s physician salaries are relatively low due to the high supply of doctors.
California: Similar to New York, California has a large number of physicians, leading to increased competition and lower salaries.
Maryland: Maryland’s proximity to Washington, D.C., and its high concentration of healthcare facilities result in lower average physician salaries.
Massachusetts: Despite its strong healthcare system, Massachusetts has a high supply of physicians, contributing to lower salaries.

3.3. Regional Differences in Physician Compensation

Physician compensation also varies by region within the United States. Factors such as population density, economic conditions, and healthcare infrastructure influence salary levels in different regions.

According to Medscape’s 2025 data, the regions with the highest physician salaries include:

North Central: States in the North Central region, such as North Dakota, South Dakota, and Minnesota, offer competitive salaries due to a combination of high demand and lower cost of living.
South Central: States in the South Central region, such as Oklahoma and Arkansas, also offer relatively high physician salaries.

The regions with the lowest physician salaries include:

Northeast: The Northeast region, including states like New York, Massachusetts, and Rhode Island, tends to have lower physician salaries due to a high supply of doctors.
Mid-Atlantic: States in the Mid-Atlantic region, such as Maryland and Pennsylvania, also have relatively low physician salaries.

3.4. Cost of Living Considerations

When evaluating physician salaries by location, it’s essential to consider the cost of living. A higher salary in one location may not translate to a better quality of life if the cost of living is significantly higher.

For example, a physician earning $350,000 per year in New York City may have less disposable income than a physician earning $300,000 per year in a state with a lower cost of living, such as South Dakota.

3.5. Geographic Arbitrage

Geographic arbitrage involves practicing medicine in a lower-cost-of-living area while earning a higher salary due to greater demand for physicians. This strategy can help doctors achieve financial independence more quickly.

For example, a physician living in Weyauwega, Wisconsin, may have a lower cost of living and higher earning potential compared to a physician in New York City, making geographic arbitrage an attractive option.

4. Doctor Salary by Employment Setting

The setting in which a doctor practices significantly impacts their salary. Different employment models offer varying levels of compensation and benefits.

4.1. Salaries in Different Practice Settings

The Doximity survey provides insights into how much money a doctor makes a year across various practice settings.

Here’s how average annual income varies by employment setting:

Single Specialty Group: Physicians in single specialty groups earn an average of $461,000, reflecting a 5.0% increase from the previous year.
Multi-Specialty Group: Doctors in multi-specialty groups average $447,000, a 6.1% increase.
Solo Practice: Solo practitioners earn around $443,000, showing a 3.5% increase.
Hospital: Hospital-employed physicians average $428,000, a 5.8% increase.
Health System/IDN/ACO: Those in health systems, IDNs, and ACOs earn about $427,000, with a 7.0% increase.
Health Maintenance Organization (HMO): Physicians in HMOs average $406,000, a 4.9% increase.
Academic: Academic physicians earn around $365,000, with a 5.2% increase.
Urgent Care Center/Chain: Doctors in urgent care centers earn an average of $288,000, a 9.1% increase.
Government: Government-employed physicians average $292,000, an 8.6% increase.

4.2. Impact of Practice Ownership

Practice ownership can significantly affect a doctor’s income. Physicians who own their practices often have higher earning potential compared to those employed by hospitals or large healthcare systems.

4.3. Academic vs. Private Practice

Academic positions typically offer lower salaries compared to private practice. However, academic positions may provide other benefits, such as opportunities for research, teaching, and career advancement.

4.4. Hospital Employment

Hospital employment has become increasingly common, offering doctors stability and benefits such as health insurance, retirement plans, and malpractice coverage.

4.5. Urgent Care Centers and Chains

Urgent care centers and chains tend to offer lower salaries compared to other practice settings. However, these positions may provide more flexible hours and a lower-stress environment.

5. Gender Pay Gap in Medicine

Despite progress in gender equality, a significant pay gap persists in medicine. Female doctors consistently earn less than their male counterparts, even when controlling for factors such as specialty, experience, and location.

5.1. Understanding the Gender Pay Disparity

The gender pay gap in medicine is a complex issue with multiple contributing factors. These include:

Negotiation Skills: Studies have shown that female doctors may be less likely to negotiate for higher salaries compared to their male counterparts.
Work-Life Balance: Female doctors may be more likely to take time off for family responsibilities, which can impact their earning potential.
Discrimination: Implicit bias and discrimination may also contribute to the gender pay gap in medicine.

5.2. Statistics on the Gender Pay Gap

According to Doximity’s latest data, the gender pay gap in medicine slightly narrowed to 23% in 2023. Male doctors earn about $102,000 more than their female colleagues per year.

The latest Medscape data shows that the pay gap has widened slightly, as male doctors averaged $415,000 and female doctors averaged $317,000, a $98,000 difference.

5.3. Impact on Physician Burnout

The gender pay gap can contribute to higher rates of physician burnout among women doctors. Feeling undervalued and underpaid can lead to increased stress and dissatisfaction, impacting their overall well-being.

5.4. Efforts to Close the Pay Gap

Efforts to close the gender pay gap in medicine include:

Raising Awareness: Increasing awareness of the issue is a crucial step in addressing the pay gap.
Promoting Transparency: Encouraging transparency in compensation practices can help identify and address pay disparities.
Negotiation Training: Providing negotiation training to female doctors can help them advocate for fair compensation.
Policy Changes: Implementing policies that promote equal pay for equal work can help reduce the gender pay gap.

5.5. Addressing Gender Disparities

Addressing gender disparities in physician compensation requires a multifaceted approach involving individual action, institutional changes, and policy reforms.

6. Strategies to Increase Physician Income

Doctors can employ various strategies to increase their income, from negotiating better contracts to pursuing additional revenue streams.

6.1. Contract Negotiation

Negotiating a favorable employment contract is crucial for maximizing income potential. Doctors should carefully review all aspects of their contracts, including salary, benefits, call responsibilities, and partnership opportunities.

6.2. Additional Revenue Streams

Exploring additional revenue streams can supplement a doctor’s income. These may include:

Moonlighting: Taking on additional shifts or providing medical services outside of regular employment.
Consulting: Offering medical expertise to companies or organizations.
Investing: Investing in real estate, stocks, or other assets to generate passive income.
Teaching: Teaching medical students or residents.
Expert Witness Work: Providing expert testimony in legal cases.

6.3. Improving Practice Efficiency

Improving practice efficiency can lead to increased revenue. Strategies include:

Streamlining Workflow: Optimizing processes to reduce waste and improve productivity.
Implementing Technology: Utilizing electronic health records and other technologies to enhance efficiency.
Delegating Tasks: Delegating administrative and clinical tasks to qualified staff members.

6.4. Enhancing Skills and Specialization

Enhancing skills and pursuing further specialization can lead to higher compensation. Doctors can:

Attend Continuing Medical Education (CME) Courses: Staying up-to-date with the latest medical advancements and techniques.
Obtain Additional Certifications: Earning certifications in specialized areas of medicine.
Pursue Fellowships: Completing fellowships to gain expertise in a subspecialty.

6.5. Relocating to High-Demand Areas

Relocating to geographic areas with high demand for physicians can result in higher salaries. Doctors should research areas with physician shortages and consider practicing in underserved communities.

7. Financial Planning for Physicians

Financial planning is essential for doctors to manage their income effectively, achieve their financial goals, and secure their future.

7.1. Budgeting and Expense Management

Creating a budget and managing expenses are fundamental steps in financial planning. Doctors should track their income and expenses, identify areas for savings, and develop a plan for achieving their financial goals.

7.2. Debt Management

Many doctors accumulate significant debt during medical school. Developing a strategy for managing and paying off debt is crucial.

7.3. Investing Strategies

Investing wisely is essential for building wealth and achieving financial independence. Doctors should consider:

Diversification: Spreading investments across different asset classes to reduce risk.
Long-Term Investing: Focusing on long-term investments with the potential for growth.
Retirement Planning: Contributing to retirement accounts such as 401(k)s and IRAs.

7.4. Retirement Planning

Planning for retirement is essential for ensuring financial security in later years. Doctors should:

Estimate Retirement Expenses: Determining how much money they will need to cover their expenses in retirement.
Save Early and Often: Starting to save for retirement as early as possible.
Consider Tax-Advantaged Accounts: Utilizing tax-advantaged retirement accounts to maximize savings.

7.5. Estate Planning

Estate planning involves making arrangements for the management and distribution of assets in the event of death or incapacitation.

8. Latest Trends in Physician Compensation

Staying informed about the latest trends in physician compensation is crucial for doctors to make informed career decisions and negotiate fair salaries.

8.1. Impact of Healthcare Reform

Healthcare reform initiatives, such as the Affordable Care Act (ACA), can impact physician compensation. Changes in reimbursement models, insurance coverage, and healthcare delivery can affect physician income.

8.2. Telemedicine and Virtual Care

The rise of telemedicine and virtual care has created new opportunities for doctors to provide medical services remotely. Telemedicine can increase access to care and generate additional revenue streams for physicians.

8.3. Value-Based Care

Value-based care models, which focus on improving patient outcomes and reducing costs, are becoming increasingly prevalent. Physicians who can demonstrate value and improve patient care may be rewarded with higher compensation.

8.4. Physician Shortages

Physician shortages in certain specialties and geographic areas continue to drive up compensation levels. Doctors practicing in high-demand areas may be able to command higher salaries.

8.5. The Influence of Technology

Technological advancements, such as artificial intelligence and machine learning, are transforming healthcare and impacting physician roles. Doctors who embrace technology and adapt to new workflows may be better positioned to thrive in the changing healthcare landscape.

9. Resources for Physician Salary Information

Doctors can utilize various resources to gather information about physician salaries and compensation trends.

9.1. Medical Associations

Medical associations, such as the American Medical Association (AMA) and specialty-specific organizations, often provide salary surveys and compensation data to their members.

9.2. Online Salary Databases

Online salary databases, such as Salary.com and Payscale.com, offer information about physician salaries based on specialty, location, and experience.

9.3. Physician Recruitment Firms

Physician recruitment firms can provide valuable insights into compensation trends and salary expectations. Recruiters often have access to exclusive salary data and can help doctors negotiate favorable contracts.

9.4. Financial Advisors

Financial advisors specializing in physician finances can offer guidance on budgeting, debt management, investing, and retirement planning.

9.5. Professional Networking

Networking with other doctors can provide valuable insights into compensation trends and salary negotiation strategies.

10. Frequently Asked Questions (FAQs) About Doctor Salaries

Here are some frequently asked questions about doctor salaries:

10.1. How Much Money Does A Doctor Make A Year on Average in the US?

The average annual salary for physicians in the US is approximately $376,000, according to Medscape’s 2025 Physician Compensation Report. However, this number varies significantly depending on specialty, location, and other factors.

10.2. Which Medical Specialty Has the Highest Earning Potential?

Neurosurgery is consistently ranked as the highest-paid medical specialty, with average annual salaries exceeding $760,000.

10.3. How Does Location Impact a Doctor’s Salary?

Geographic location significantly impacts physician salaries, with some states and regions offering higher compensation due to demand and cost of living.

10.4. What Is the Gender Pay Gap in Medicine?

The gender pay gap in medicine persists, with male doctors generally earning more than their female counterparts, even when controlling for factors such as specialty and experience.

10.5. How Can Doctors Increase Their Income?

Doctors can increase their income through contract negotiation, additional revenue streams, improving practice efficiency, enhancing skills and specialization, and relocating to high-demand areas.

10.6. What Are the Best Strategies for Financial Planning for Physicians?

Effective financial planning strategies for physicians include budgeting and expense management, debt management, investing strategies, retirement planning, and estate planning.

10.7. How Do Healthcare Reforms Affect Physician Salaries?

Healthcare reforms can impact physician salaries through changes in reimbursement models, insurance coverage, and healthcare delivery.

10.8. What Is the Role of Telemedicine in Physician Compensation?

Telemedicine offers new opportunities for doctors to provide medical services remotely, increasing access to care and generating additional revenue streams.

10.9. Where Can Doctors Find Reliable Salary Information?

Doctors can find reliable salary information from medical associations, online salary databases, physician recruitment firms, financial advisors, and professional networking.

10.10. Is It Worth It to Pursue a High-Paying Specialty?

The decision to pursue a high-paying specialty depends on individual interests, skills, and priorities. While high-paying specialties offer greater earning potential, they may also involve longer hours, higher stress levels, and more extensive training.

Understanding how much money a doctor makes a year in the USA requires considering various factors such as specialty, location, employment setting, and gender. By staying informed about compensation trends, implementing effective financial planning strategies, and taking steps to increase their income, doctors can achieve their financial goals and secure their future.

Want to take control of your finances and achieve financial freedom? Visit money-central.com today for more articles, financial tools, and expert advice tailored to your specific needs. Whether you’re looking to create a budget, manage debt, invest wisely, or plan for retirement, we have the resources you need to succeed. Don’t wait, start your journey to financial success with money-central.com now. Our comprehensive resources, user-friendly tools, and expert guidance will empower you to make informed decisions and achieve your financial aspirations. Address: 44 West Fourth Street, New York, NY 10012, United States. Phone: +1 (212) 998-0000. Website: money-central.com.