Physician compensation trends are unusual compared to other industries, according to data from physician social networking site Doximity.
"Healthcare is incredibly local. And pay trends in medicine are inverse that of most industries — high cost areas actually pay less," Jeff Tangney, CEO and founder of Doximity said in a statement.
Healthcare really is local. Tuesday, Doximity launched a new interactive mapping tool to help physicians evaluate career opportunities, based on data from more than 18,000 physicians. The tool reveals that an OB/Gyn in Boulder, Co., for example, could earn $32,000 more each year than an OB/Gyn working 40 miles away in Denver.
In general, the tool shows physicians outside of major urban areas tend to make more, even taking the cost of living into account. Physicians make $1,500 more on average in rural areas than those in urban areas, according to Doximity. For example, in Boston, an internal medicine physician might bring in $202,000 in average compensation each year, according to a Doximity spokesperson. However, this physician could make an average of $70,000 more per year in Greenville, Miss.
This may be because many major urban areas, like Boston, New York, Chicago and Los Angeles are also home to medical schools, and the data shows physicians who work for the government or academic medical centers tend to earn less. Internists working in private practice earn about 12 percent or $28,000 more each year than their counterparts working in academic or government institutions, according to Doximity.
Market saturation is another factor, especially for specialists. In a town with a population of 100,000, specialists make $1,500 less per year when an additional specialist starts practicing in the same town, according to the Doximity blog.
However, other health trends also come into play. Physicians who practice in areas with high rates of obesity tend to bring in a higher salary, according to the report. The data suggests physicians earn the most where they are needed the most.
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