It is essential for any physician entering the job market—and especially those doing so for first time as they transition from residency or fellowship to full-time practice—to understand the payment landscape.
A report recently released by Resolve, a contract review and negotiation firm specializing in physician employment, draws on data from the thousands of physician contracts the firm handles to outline must-know trends nationally, as well as across regions, practice settings and more.
The report shows that physicians’ base salaries grew roughly 2% to 4% per year, a growth rate down from years past, in which physicians were seeing increases of 5% to 6% per year.
And importantly, more of physician compensation comes in sign-on and retention bonuses than in past years, and it is increasingly tied to variable factors such as relative value units (RVUs), along with quality and other metrics.
“Physician compensation did not simply grow or shrink; it became more conditional,” the report’s authors noted.
The data in the report comes from more than 4,000 physician contracts reviewed by Resolve in all 50 states in the nation and in 116 specialties and subspecialties.
Physicians in any stage of their careers, but particularly those seeking their first positions after the end of residency or fellowship training, can leverage the data in the report to aid them in their job searches.
The AMA also has teamed up with Resolve to provide AMA members an exclusive discount on services that include custom contract review. Resolve offers personalized legal expertise to help physicians secure the best employment contract terms, no matter where they are in their careers. Ready to access your AMA-member Resolve discount? Learn more now.
Much parity in base salaries
The national average base salary for physicians was $387,000 a year, according to the report. The median base salaries in the four regions of the U.S. are:
- $355,000—South.
- $350,000—West.
- $348,000—East.
- $344,000—Midwest.
Of the states with the largest sample sizes in the report, New Jersey physicians had the highest median base salary, at $400,000 a year. Other top states were:
- Florida—$396,000.
- Pennsylvania—$350,000.
- Illinois—$350,000.
- Washington—$350,000.
- Maryland—$350,000.
Ultimately, though, “location mattered less than net compensation after cost-of-living, on‑call burden and contract flexibility, thus reshaping how physicians evaluated offers across regions,” the Resolve report says.
The median base salary for women physicians was about 25% lower than that of male physicians. Women physicians whose data was included in the report received a median $320,000 base salary, while their male counterparts received a median $400,000 base salary.
The median base salaries for different employment structures were as follows:
- $350,000—Partner physician.
- $342,720—Employed physician.
- $316,921—Independent contractor.
The report, however, adds that the base salary data may be deceptive for physicians outside of an employer-employee model.
“Independent-contractor and partner medians understate reality—much of that compensation arrives through distributions and partnership draws that never appear as 'salary' on the contract,” the Resolve report says.
Learn more with the AMA about understanding physician employment contracts.
Variable metrics are increasingly important
Base salaries were only part of the story, the report’s authors stressed, adding that a physician’s total earning potential depended heavily on other contractual factors, including:
- Productivity definitions and conversion rates.
- Ramp‑up timelines.
- Bonus mechanics and exclusions.
- Contract termination and non‑compete risk.
“Organizations increasingly leaned on bonuses, sign‑on incentives, and productivity‑based components to stay competitive without permanently inflating base salaries,” the report says. Data shows a “growing reliance on hybrid compensation models, blending guaranteed pay with wRVUs [work relative value units] or performance thresholds that are often more aggressive than in prior contracts. … Physicians saw offers that looked competitive on paper but required higher output, tighter benchmarks, or faster ramp‑ups to fully realize total compensation.”
With so much of a physician’s compensation and earning potential tied up in factors that require careful negotiation, it’s more important than ever to have experienced professionals review any employment contract before you sign.
AMA members receive a 20% discount on all Resolve services. With Resolve, you get:
- Custom contract review for any type of employment contract.
- Access to experienced attorneys who can negotiate on your behalf.
- Real-time, comprehensive compensation data and benchmarks to help you understand your worth.
- An instant contract-review option, powered by Resolve’s attorney-trained AI model.
- Free tools such as a contract scorecard to give a quick overview of where your contract stands.
Ready to access your AMA-member Resolve discount? Learn more now.
And if you’re seeking your first physician job after residency, get your cheat sheet now from the AMA.
