The COVID-19 pandemic brought on many challenges for the healthcare industry, including decreased financial compensation for physicians. According to the 2022 Medscape Young Physician Compensation Report, the majority of physicians are satisfied with their jobs, as 68% reported that they would still select medicine if they had a second chance at choosing a career. Whereas mean physician earnings in 2021 generally remained at the same level as in 2020, the average physician earnings improved in 2022. Although doctors’ compensation is experiencing an overall recovery, numerous financial hurdles still exist.

For example, physicians who identify as women continue facing a gender gap in compensation. According to the Association of American Medical Colleges (AAMC), the number of female physicians rose 8% from 2007–2019. What’s more, 2014–2019 saw a 38.3% rise in the number of female critical-care physicians and 52.8% rise in the number of female pediatric anesthesiologists. Despite the increase in the number of female physicians and the overall rise in physician compensation, the 2022 Medscape Report found pay discrepancies between genders. Whereas the average female physician earned $246,000, the average male physician earned $337,000.

Another factor affecting wage discrepancies is location. The 2022 Medscape report found that the West North Central US offered the most increased physicians’ earnings, rising by 20% from a previous average salary of $261,000 to an average $314,000 in 2022. However, a Medscape 2002 Physician Compensation Report concluded that locations with significant increased earnings did not necessarily coincide with locations offering the highest average salaries. While Missouri fit in both camps, ranking fourth among the five top-earning states, Kentucky was the pinnacle, with an average physician salary of $364,000, followed by Tennessee, Alabama, and Oregon.

It is important to note that a physician’s financial well-being does not solely rely on income. It is not enough to simply earn a salary. After factoring in rising interest rates and living expenses (eg, mortgages, car loans, and student loans), physicians should bear in mind that what they keep is equally as important as what they earn. For instance, an article in Forbes Advisor noted that 30-year fixed-rate mortgages climbed in 2022 from 3.2% to a highpoint of 7%. What’s more, the AAMC found that graduating physicians in 2022 had an average education debt of $205,037. It is crucial that physicians consider all factors, not just earnings, in their financial health and planning.