Physician practice owners can earn vastly different salaries depending on several key factors, according to a recent report from Physician’s Thrive.
According to the report, independent practice compensation ranges from as low as $53,500 to as high as $370,000, with a median income of $272,959.
Here are the primary factors shaping income for physicians in private practice, according to the report:
1. Geographic location
Service pricing, and thus physician pay, varies significantly by region. Markets like Phoenix, Boston and New York typically command higher wages for family medicine practitioners, with average salaries ranging from $214,000 to nearly $296,000.
2. Specialty and type of care
The medical specialty a physician practices is one of the strongest predictors of income. For example, pediatricians earned an average of $260,000 in 2024, according to Physician Thrive. In contrast, plastic surgeons reported a much higher average income of $536,000. Procedural and cosmetic specialties tend to command higher reimbursements and patient demand.
3. Practice size
The scale of a practice influences take-home pay through economies of scale. Larger practices may face higher operational costs, but they also benefit from shared administrative expenses and resource consolidation. These efficiencies can lower individual overhead and boost net income for each physician owner.
4. Payer mix
A practice’s payer mix also plays a pivotal role in financial outcomes, according to the report. Commercial payers generally reimburse at higher rates than government programs, making payer mix a critical component for new practice owners.
5. Operational efficiency
Workflows can make or break a practice’s financial health. Inefficiencies like manual scheduling, billing delays or lack of automation can cause significant revenue leakage. Streamlined operations help reduce administrative burdens and ensure consistent cash flow.
6. Patient volume
Patient throughput directly correlates with revenue. More patients usually mean more income. However, long-term success hinges not just on attracting new patients but also on retaining existing ones.
7. Compliance risk
Regulatory compliance might not generate revenue, but failure to comply can be financially devastating. Violations can lead to fines, legal penalties, license revocation and reputational harm.
The post What influences physician owner salaries? appeared first on Becker’s ASC.
