Physician Pay Fell 2.4% In 2022 With Rising Levels Of Burnout
When we think about the future of businesses, we often anticipate a steady increase in income and revenue over time, and medical practices are no different. However, a recent survey sheds light on a concerning trend: when adjusted for inflation, Medicare physician pay has actually decreased by 22 percent between 2001 and 2021. However, recent trends indicate a concerning decline in physician pay coupled with a surge in burnout rates. According to the latest data, physician pay fell by 2.4% in 2022, painting a distressing picture of financial strain amidst the backdrop of escalating burnout levels within the medical community.
This insight comes from the 2023 Physician Compensation Report by Doximity, which not only examines why physician pay is declining and where these changes are occurring but also identifies which medical specialities are experiencing the most significant shifts in income. To compile this report, Doximity conducted surveys with over 190,000 full-time doctors over a span of six years, analyzing the fluctuations in compensation during that period.
Average Physician Pay Fell 2.4% In 2022
Last year, doctors experienced a setback in their pay—instead of seeing an increase, there was actually a decline of 2.4% in 2022, compared to a 3.8% increase in 2021. Adding to the financial strain, practice expenses have been steadily rising due to ongoing safety and sanitation protocols, even after the Public Health Emergency (PHE) ended. This has made managing a practice more costly this year than ever before.
When examining physician pay across different regions of the United States, Charlotte, N.C., emerged as the top-paying city, with an average compensation of $430,890. Following closely behind were St. Louis, MO, Oklahoma City, OK, and San Jose, CA. Interestingly, Charlotte and St. Louis maintained their positions from the previous year.
Conversely, the lowest-paid physicians were found in Washington, D.C., with an average compensation of $342,139. Following Washington were Baltimore, MD, Boston, MA, and San Antonio, TX.
Some metropolitan areas witnessed notable increases in physician compensation last year. For instance, Oklahoma City saw a remarkable rise of 6.3%, followed by Baltimore, with a 4.6% increase, and Salt Lake City, UT, with a 2.9% uptick.
Factors Behind the Average Pay Fell
The financial landscape for physicians has undergone significant shifts in recent years, with various factors contributing to the decline in compensation. One of the primary drivers has been the evolving healthcare reimbursement model, marked by a transition towards value-based care and cost-containment efforts. Reimbursement cuts from government payers, declining insurance reimbursements, and increasing administrative burdens have all played a role in squeezing physician incomes.
Furthermore, the COVID-19 pandemic exacerbated existing financial challenges for healthcare providers. The pandemic necessitated rapid adaptations in healthcare delivery, leading to disruptions in revenue streams for many practices. Elective procedures were postponed, patient volumes fluctuated, and resources were redirected toward pandemic response efforts, all of which took a toll on physician earnings.
Rises in Physician Burnout
While financial pressures weigh heavily on physicians, perhaps even more alarming is the parallel rise in burnout rates. Physician burnout, characterized by emotional exhaustion, depersonalization, and a diminished sense of accomplishment, has become a pervasive issue within the medical community. The demanding nature of the profession, long working hours, administrative burdens, and the constant pressure to deliver optimal patient care have all contributed to this epidemic.
The intersection of declining pay and increasing burnout is particularly concerning, as it has profound implications for both individual physicians and the healthcare system as a whole. Financial stressors can exacerbate feelings of burnout, creating a vicious cycle that erodes job satisfaction and contributes to professional disillusionment.
Female physicians not only earn less than their male counterparts but also report feeling more overworked. According to the survey, 92% of female respondents expressed feeling overworked, compared to 83% of male respondents.
Moreover, a significant portion of surveyed physicians—about two-thirds—are contemplating a change in their employment status. This includes considering leaving for another position elsewhere, contemplating early retirement, or even contemplating a complete career change. Perhaps most strikingly, a staggering 71% of respondents indicated that they would be willing to accept lower pay if it meant achieving a better work-life balance.
How to Deal With Situations Like This?
The survey results highlight physicians' heightened sense of being overworked, exacerbated by worsening reimbursement from payers. This places added pressure on practice managers to address several key needs. Strategies such as optimizing scheduling to enhance physician productivity and morale, investing in technological tools for efficient patient care and documentation, refining accounts receivable processes to maximize revenue, and improving denial management systems to minimize losses are crucial.
Additionally, training front desk staff to efficiently collect payments, exploring new income streams like charging for patient forms, maintaining compliance with HIPAA and regulatory standards, ensuring accurate E/M levelling by providers, and conducting regular self-audits to identify and rectify reimbursement inefficiencies are essential steps in navigating this challenging landscape.
