When it comes to physician’s salaries, there are many pros and cons to
doctors being paid a huge salary. There are a few models on how doctors are
paid, one of the most common models is theProduction-or-productivity
based compensation. In this model physicians are paid a percentage of either
billings or collections, or they are paid based on the resource-based relative
value scale (RBRVS) units assigned to procedures or patient-visit types. The
overhead costs of the practice — both fixed and variable — are allocated
among the physicians (Darves, 2011). Another salary modelStraight
salary/minimum-income guarantee or salary plus bonus/incentive.Most
often seen in large HMOs, academic settings, and large corporate- or
physician-owned practices, these closely related models are perhaps the most
straightforward, because the income level is set and physicians know how
much they’ll earn (Darves, 2011).Equality/equal shares. This model,
considered the easiest from an administrative standpoint, is based purely on
economics: after expenses, the remaining revenues are allocated equally
among the group’s physicians (Darves, 2011).
These all require the medical provider to be paid for quantity verses quality.
Mayo Clinic, one of the leading hospital systems in the world has its own pay
model. Mayo Clinic adopted a structured compensation model which was
created to remove financial incentives for physicians to do more than is
medically necessary. The model provides no incentives or bonus pay, and
non-salary compensation and benefits are consistent across Mayo Clinic
venues and specialties (Commins, 2020). This to me is a model that all
systems need to strive more, doctors should be paid. There should not be a
price on a patient care, other than a standardized care. One of the crazy things
I found during my research is the ridiculous salaries some doctors make.
Below is the average pay for specialty doctors in 2021.
1. Neurosurgery – $773,201
2. Thoracic surgery – $684,663
3. Orthopedic surgery – $633,620
4. Plastic surgery – $556,698
5. Vascular surgery – $552,313
6. Oral and maxillofacial – $545,471
7. Radiation oncology – $544,313
8. Cardiology – $537,777
9. Urology – $514,922
10. Gastroenterology – $500,400
11. Otolaryngology (ENT) – $497,157
12. Radiology – $495,451
13. Dermatology – $476,263
14. Anesthesiology – $457,867
15. Ophthalmology – $454,997
16. General surgery – $451,151
17. Oncology – $447,112
18. Colon and rectal surgery – $445,730
19. Nuclear medicine – $398,544
20. Pulmonology – $385,602 (Landi, 2021)
These are some crazy numbers that are making me rethink my career moving
forward.
References
Commins, J. (2020, January 2).MAYO'S STRUCTURED COMPENSATION
MODEL TACKLES GENDER PAY INEQUALITY. healthleaders:
https://www.healthleadersmedia.com/finance/mayos-structured-
compensation-model-tackles-gender-pay-inequality
Darves, B. (2011, October 18).Physician Compensation Models: The Basics,
the Pros, and the Cons. NEJM Career Center:
https://resources.nejmcareercenter.org/article/physician-compensation-
models-the-basics-the-pros-and-the-cons/#:~:text=Essentially%2C
%20physicians%20are%20paid%20a,are%20allocated%20among
%20the%20physicians.
Landi, H. (2021, December 16).A list of the 20 highest paid specialties in
2021 as average pay for doctors slumps amid rising inflation:
Doximity. Fierce HealthCare:
https://www.fiercehealthcare.com/practices/a-list-20-highest-paid-
specialties-2021-as-average-pay-for-doctors-slumps-doximity
