People look at the cars in the doctors’ parking lot to estimate MD income. Most folks still think that doctors are loaded, and doctors generally like to be thought of as rich..
This post looks at physician income, motivation, and public myths about what doctors get paid.
In a private medical system, if doctors don’t drive a Lexus or better, they must not be a good doctor.
In a publicly funded system, doctors should drive a Honda, otherwise we pay them too much!
Physician Income:
1. Physicians who work more, earn more.
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Most MDs do not receive a salary; they increase their earning by working longer hours. Like any self-employed business person in a market that needs your services, time and energy are the only limits to earning. No matter what you earn per hour, if you work 100 hour weeks, you will earn $$$$, too.
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2. Physician income does not equal take-home pay.
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Most physicians hire staff, pay rent, lease equipment, and carry dozens of other expenses related to running a small business that eat up 35% of gross billings.
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3. Physicians do not receive benefits.
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MDs pay for their own pension, medical, dental, vacation, etc. Benefits typically cost 25% of income.
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4. Physicians earn less than other professionals.
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With similar training and experience (or much less), professionals in other industries (law, dentistry, finance) earn more.
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5. Physicians don’t own all their bling.
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Physicians aren’t known for financial prudence or frugal living. Fancy cars are often leased: one more payment to a stack of debt.
Physician Motivation:
1. Delayed gratification.
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After 12-15 years of University, many physicians think they’ve earned the right to spend. After watching friends in other professions buy houses and raise families, physicians think they’ve earned the right to go deeper into debt with a fancy car.
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2. Societal expectation.
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Despite begrudging envy, non-physicians expect doctors to spend. They look askance if MDs drive up in an old vehicle. People need to see extravagance, any extravagance, to justify their firm conviction that physicians are loaded.
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3. Peer pressure.
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Very few docs resist dressing, spending, and living like their colleagues.
Summary
Physicians do very well and work very hard for it. Anyone who trains for years and works hard can do as well, or better, in North America. What’s holding you back?
(photo credit: asianweek.com)
