October 2006

MD compensation increases 3%

The latest survey results from Medical Economics (ME) magazine reports that total compensation of primary-care physicians increased 3 percent from the year before, to a median of $155,000.

For unincorporated doctors, total compensation is earnings after tax-deductible expenses, but before income taxes. For physicians in professional corporations, it is the sum of salary, bonuses, and retirement/profit-sharing contributions made on their behalf.

Doctors of chiropractic reported a mean salary (not total compensation) of $96,772 in Chiropractic Economics 9th Annual Salary and Expense Survey.

“It is not possible to make direct comparison between our survey and the Medical Economics survey,” said editor-in-chief Linda Segall. “The surveys ask for different types of information, and results are not reported in the same way. For example, the figure for chiropractors’ salaries reflect only base salary — not bonuses, profit sharing, or retirement contributions.”

The ME survey reported median practice revenue for general practitioners (one of several different types of primary-care physicians) as $206,100. The ME definition of practice revenue included collections after all adjustments, discounts, and write-offs.

In the Chiropractic Economics survey, respondents were asked to identify a range that represented their gross collections. The median reported was $200K-$249K.

As ways to improve their compensation, ME advised cutting overhead, becoming more productive, and finding new revenue streams — including adding ancillary products, such as dispensing drugs.

Sources: Medical Economics, www.memag.com; Chiropractic Economics 9th Annual Salary & Expense Survey, Vol. 52, Issue 6.

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