Photo Credit: Darren415
High earning potential is a huge draw for many individuals considering a physician’s career. However, earning potential is not a given and is significantly tied to industry trends. According to physician and founder of Care Money Moves, LLC, Altelisha “Lisha” Taylor, MD, MPH, both physicians in training and well-established physicians should stay abreast of healthcare industry trends that can impact compensation.
Physicians who elect to undergo training via fellowship face a particularly long period of medical training. Dr. Taylor notes that the extra time devoted to training might not lead to greater compensation, as increased earning potential due to fellowship training only applies to certain specialties. What’s more, some medical fields require physicians to undergo fellowship training. One such field is pediatrics. Until recently, a 3-year residency was the only requirement for pediatricians wishing to work in pediatric hospitals, but current regulations require an additional 2 years of fellowship training. As a result, many pediatric specialists who participated in fellowship training earned lower compensation than those who did not.
Dr. Taylor also points out a growing trend of professionals looking to become nonphysician providers. Hiring nonphysicians helps health systems save on patient-care costs, as an employer may hire one physician and one nonphysician (instead of two physicians) to save money. Fewer positions for board-certified physicians, however, could hinder doctors’ abilities to negotiate higher compensation and bonuses.
Other growing trends experienced by some specialists are declines in reimbursements, increases in unpaid labor, and rising administrative burdens. According to Dr. Taylor, insurance companies seek to lower costs and raise profits by decreasing the services they reimburse. When insurance companies negotiate a pay rate down, employers often elect to lower physician compensation to make up for lost profits. With regard to unpaid labor and administrative burdens, physicians spend less time with patients when they have to tend to administrative duties. This lessens the time doctors can care for patients, increasing unpaid labor hours and decreasing compensation and revenue.
According to Dr. Taylor, growing administrative burdens coupled with waning reimbursement rates are just some factors contributing to physician burnout. Unfortunately, burnout has been the impetus for many physicians to devote fewer hours to work or leave the medical field. Among those physicians, decreased compensation is frequently the final straw.
