Report: At $686,000 Orthopedic Surgeons Earn The Highest Physician Starting Salary

Rhea-AI Summary

AMN Healthcare's 2024 Review of Physician and Advanced Practitioner Recruiting Incentives reveals significant disparities in starting salaries across medical specialties. Orthopedic surgeons top the list with an average starting salary of $686,000, while pediatricians are offered the lowest at $244,000. The report, based on 2,138 search engagements, highlights that specialists generally command higher salaries than primary care physicians.

Other key findings include:

• Gastroenterologists are offered $531,000 on average
• Family medicine physicians and general internists are offered $271,000
• Nurse Practitioners' average starting salary is $164,000, up 8% year-over-year
• The average signing bonus for physicians is $31,103
• Ob/Gyns are in high demand, with starting salaries up 22% from five years ago

The report also notes an increasing number of organizations, including retail clinics and telehealth platforms, competing for a pool of healthcare professionals.

Positive

• Orthopedic surgeons command the highest average starting salary at $686,000
• Nurse Practitioners' average starting salary increased by 8% year-over-year and 32% from five years ago
• Strong demand for Ob/Gyns, with starting salaries up 22% from five years ago
• Diverse range of organizations now recruiting physicians and NPs, potentially driving up salaries

Negative

• Significant salary disparity between specialists and primary care physicians
• Pediatricians offered the lowest average starting salary at $244,000
• Persistent physician shortages affecting healthcare access, particularly in rural and underserved areas

Insights

Financial Analyst

This report on physician starting salaries provides valuable insights into healthcare labor market trends. The significant salary disparities between specialists and primary care physicians, with orthopedic surgeons earning $686,000 compared to pediatricians at $244,000, highlight potential resource allocation issues in healthcare. The 8% year-over-year increase in nurse practitioner (NP) salaries, now at $164,000, indicates a growing demand for these professionals amidst physician shortages. This trend could impact healthcare delivery models and potentially affect the financial performance of healthcare providers. The increasing competition for talent from diverse entities like retail clinics and telehealth platforms suggests a shifting landscape in healthcare service delivery, which may have implications for traditional healthcare stocks.

Healthcare Policy Expert

The salary disparities revealed in this report underscore systemic issues in U.S. healthcare policy. The significant gap between specialist and primary care physician salaries reflects a misalignment of incentives in the current fee-for-service model, potentially exacerbating shortages in critical primary care roles. The rising demand for nurse practitioners, evidenced by their 32% salary increase over five years, signals a shift towards more cost-effective care models. However, this trend may face regulatory hurdles in states with restrictive scope-of-practice laws. The diversification of entities recruiting healthcare professionals suggests an evolving competitive landscape that could challenge traditional healthcare delivery models and potentially drive policy changes to address workforce distribution and access to care issues.

Labor Market Analyst

This report reveals significant trends in the healthcare labor market. The wide salary range, from $686,000 for orthopedic surgeons to $244,000 for pediatricians, reflects a highly segmented labor market with potential implications for workforce distribution and healthcare access. The 8% year-over-year increase in nurse practitioner salaries indicates a robust demand for these professionals, likely driven by their cost-effectiveness and the ongoing physician shortage. The expansion of recruiting entities beyond traditional healthcare providers suggests an increasingly competitive labor market, which could drive further salary increases and benefit packages. The strong demand for Ob/Gyns, evidenced by a 22% salary increase over five years, highlights a critical specialty shortage that may require targeted workforce development strategies.

Pediatricians Are at the Low End at $244,000

DALLAS, Aug. 05, 2024 (GLOBE NEWSWIRE) -- Orthopedic surgeons are offered the highest average starting salary among physicians at $686,000, while pediatricians are at the low end of the starting salary scale at $244,000, according to an annual report from AMN Healthcare’s Physician Solutions division (formerly known as Merritt Hawkins).

The 2024 Review of Physician and Advanced Practitioner Recruiting Incentives, now in its 31^st year, tracks starting salaries and other incentives offered by hospitals and medical groups to physicians, nurse practitioners (NPs) and other advanced practice professionals. Specialists are offered the top starting salaries among physicians, according to the report. After orthopedic surgeons, gastroenterologists are offered the highest average starting salary at $531,000, followed by urologists at $496,000, radiologists at $495,000 and dermatologists at $486,000.

Primary care physicians are offered significantly lower starting salaries than specialists, the report indicates. Family medicine physicians are offered an average starting salary of $271,000, as are general internists, less than half that of orthopedic surgeons.

“Current physician payment models favor specialists,” said Leah Grant, president of AMN Healthcare Physician Solutions. “They perform the high revenue generating procedures on which many hospitals and medical groups depend.”

While NPs are offered lower starting salaries than physicians, salary offers to NPs are increasing, according to the report. The average starting salary offer for NPs is $164,000, up over 8% year-over-year, and up 32% from five years ago.

“NPs are in rapidly growing demand as physician shortages persist,” Grant said. “Without them, access to healthcare would be even more problematic, particularly in rural and other underserved areas.”

Signing Bonuses, Relocation and CME

In addition to starting salaries, physicians and NPs often are offered signing bonuses, relocation allowances and continuing medical education (CME) allowances. The average signing bonus for physicians tracked in the report is $31,103, while the average signing bonus for NPs is $11,037.

The average relocation allowance is $11,284 for physicians and $7,910 for NPs and other advanced practice professionals. The average CME allowance is $3,969 for physicians and $2,195 for NPs. Most physician and NP employment contracts also offer benefits like health insurance, malpractice insurance and retirement/401k plans.

More Entities Vying for Physicians and NPs

According to Grant, a growing number of organizations are seeking to recruit physicians and NPs from a limited supply of candidates. These organizations include retail clinics, urgent care centers, telehealth platforms, insurance companies and private equity firms, all of which are vying with hospitals and medical groups for talent.

“Healthcare is evolving as new market entrants seek to change how and where care is delivered,” said Grant. “More types of organizations are recruiting physicians and NPs, causing starting salaries to trend up.”  

Demand for Ob/Gyns Strong, Supply Limited

AMN Healthcare received more requests to recruit obstetricians/gynecologists in the last year than any other type of physician, with the exception of family medicine physicians, according to the report. The average starting salary offer made to Ob/Gyns is $389,000, up 6% year-over-year and up 22% from five years ago, underscoring strong demand for the specialty.

AMN Healthcare’s 2024 Review of Physician and Advanced Practitioner Recruiting Incentives is based on a representative sample of the 2,138 search engagements the company conducted from April 1, 2023 to March 31, 2024, and includes data on starting salaries and other incentives offered by the company’s clients to physicians and advanced practice professionals nationwide. A copy of the report can be accessed at https://www.amnhealthcare.com/siteassets/amn-insights/physician/incentive-review-2024-final.pdf

About AMN Healthcare  
AMN Healthcare is the leader and innovator in total talent solutions for healthcare organizations across the United States. Through a steadfast partnership approach, we solve the most pressing workforce challenges to enable better clinical outcomes and access to care. We provide a comprehensive network of quality healthcare professionals and deliver a fully integrated and customizable suite of workforce technologies.

Media Contact   Corporate Communications   AMN Healthcare   AMN-PR@amnhealthcare.com

Investor Contact   Randle Reece   Senior Director, Investor Relations & Strategy   AMN Healthcare   (866) 861-3229  ir@amnhealthcare.com

FAQ

What is the highest average starting salary for physicians according to AMN Healthcare's 2024 report?

According to AMN Healthcare's 2024 report, orthopedic surgeons are offered the highest average starting salary among physicians at $686,000.

How much has the average starting salary for Nurse Practitioners (NPs) increased according to AMN's report?

The average starting salary for Nurse Practitioners has increased by 8% year-over-year and is up 32% from five years ago, reaching $164,000.

What is the average starting salary for family medicine physicians based on AMN's 2024 review?

According to AMN Healthcare's 2024 review, family medicine physicians are offered an average starting salary of $271,000.

How much has the average starting salary for Ob/Gyns increased in the past five years?

The average starting salary for Ob/Gyns has increased by 22% from five years ago, reaching $389,000 according to AMN Healthcare's report.