Primary care salaries Can. vs USA

[RuralDoc]

A short article claims that malpractice insurance in the USA eats up much of the difference in salaries between Canada and USA...

 

http://www.nationalreviewofmedicine.com/issue/2006/10_15-30/3_PM_your_practice01_16.html

 

Canadian MD earnings inch upward

 

NRM survey shows practice revenue remains healthy

 

 

Gross and net earnings rose in 2005

Gross Net

Dermatologists $360,000 $240,000

Internists $310,000 $200,000

Ob/gyns $320,000 $195,000

Pediatricians $250,000 $160,000

Psychiatrists $190.000 $160.000

GPs $260,000 $155,000

 

"Things seemed pretty steady to me, money-wise" says a Montreal GP. Her view is in keeping with the majority of respondents in NRM's latest Practice Management Survey, which revealed that most doctors' earnings held steady in 2005. But when you closely look at the numbers, there's actually much to happy about. For instance, physicians were more likely to see a wage increase and less likely see their pay decline last year compared the year before.

 

Overall, 41%* of Canadian doctors said their gross practice revenue increased during last year. This is up from 33% in 2004. Also, fewer doctors complained of a drop in gross revenue in last year (14%) compared to the previous year (21%).

 

The past year's numbers were similarly pleasant for Canadian MDs after practice expenses. In 2005, 34% reported a higher take-home pay, compared to 27% in 2004. After taxes too, MDs were farther ahead of the game in 2005 than 2004; in 2005 18% of doctors reported a drop in net income compared to 28% in 2004.

 

NRM Practice Management Survey Results 2006

Gross practice revenue for GP/FPs and selected specialties

 

click here for pdf chart

 

DOLLARS & CENTS

Primary care physicians had a pretty good year in 2006. An equal number of respondents (43%) earned a higher practice revenue compared to the previous year; only 13% had a lower gross income. After-tax earnings weren't quite so good for Canada's GPs. While 34% saw their net salary rise, 51% saw it hold steady, and for 18% of respondents, after-tax revenue was down in 2005.

 

According to the survey, 2005 saw a jump in the number of physicians in the top-tier income bracket of $300,000 or higher. All-in-all 27% of respondents grossed more than $300,000 in 2005 — that's an eight percent jump from the previous year. Also, in 2005, 37% of respondents earned a gross income between of $200,000-$300,000 — a 1% gain from last year's survey. Not surprisingly, a higher proportion of specialists (31%) surpassed the 300K mark than GPs (20%). Nine percent of GPs found themselves in the lowest MD income bracket — less than $100,000. Surprisingly, an even greater percentage of specialist respondents (10%) reported earning less than 100K.

 

GRASS NOT GREENER

Things haven't been so rosy of late for doctors south of the border. A survey published in Medical Economics found that net earnings for both the average primary care doctor and the average specialist remained unchanged over a one-year — and when inflation was added to the picture, their wages actually declined. Canadian doctors, despite the problems with our system, might want to thank their lucky stars that the tort environment here is nowhere near as poisonous as it is in the United States. In fact, extortionate American malpractice insurance premiums — which shot up 18% in a year — were the biggest factor in holding back growth in US doctor compensation.

US MDs gross more, net less

Gross Net*

Dermatologists $560,000 $282,000

Ob/gyns $569,300 $215,000

Pediatricians $380,000 $147,900

Internists $350,000 $150,000

GPs/FPs $320,900 $134,000

(*2004 median income, after tax-deductible expenses, but before income taxes, in US funds. Source: Medical Economics)

[everyoneloveschem]

Wow! Those are some shocking differences in the US between gross and net. I can see why people might think American physician make more, until they dig a little deeper. I can't see why a dermatologist should make $560k/yr though, that quite obscene - is that because they are doing more lucrative procedures like botox?

[OttawaURookie]

Wow. I honestly had no idea that doctors got paid this much. So a GP gets paid about $13,000 a month?

[drcave]

yah, that's more than I thought too.

[Dal07]

I think it's great that GP's are finally seeing a hike in their salaries. I know that in Ontario the implementation of Family Health Groups/Family Health Networks have really helped increase their salaries, and are probably reducing ER wait times as well.

[citrinez]

I know it gives the net amount for a gp salary, but is that actually how much a gp makes (i.e. if they run their own practice say with one or two other doctors)? Does that net, figure just minus taxes, or does it include things like insurance, and paying staff, and a lease?

[Jochi1543]

I know it gives the net amount for a gp salary, but is that actually how much a gp makes (i.e. if they run their own practice say with one or two other doctors)? Does that net, figure just minus taxes, or does it include things like insurance, and paying staff, and a lease?

Net income is revenue minus expenses, and expenses include the cost of running the practice.

[leviathan]

I know it gives the net amount for a gp salary, but is that actually how much a gp makes (i.e. if they run their own practice say with one or two other doctors)? Does that net, figure just minus taxes, or does it include things like insurance, and paying staff, and a lease?

The net is their income after they've paid off all their expenses; in other words, the amount of money they claim on their tax returns and pay taxes on.

[UoC-CCFP-07]

Those net figures are post-overhead ONLY.

 

You also have to subtract:

- income tax (like everybody else)

- RRSP contributions because you don't have a pension (I'm going to need to afford $1500/month)

- Other benefits, ie medical/dental, that paid employees might not have to pay

- Your student debts: my student debt is going to cost approx $2500-$3000/month to service. And since it's a bank LOC, and not gov't student loans - none of that is eligible for tax benefits.

 

AS WELL. . . depending on how overhead is being reported it may or may not include things like CMPA dues, CPSA dues, CMA dues.

 

The numbers for physician salaries appear big, but it gets whittled down might quick. The $5-10,000 a GP makes per month (after tax) is not really $5-10k in the pocket.