When Ted Epperly entered medical school in 1976, he did so with a
scholarship from the U.S. Army. In return he committed to serving for
four years in the Army after graduating from the University of
Washington. It meant he wouldn't have the crippling student loans that
burden many new doctors, so he was free to follow his dream of becoming
a family practitioner instead of a cardiologist, the more lucrative
specialty he was also considering.
"I didn't have large loans, so my choice became about what I wanted
to do," he says. Today he is president of the American Academy of
Family Physicians. "As I went through school I realized I loved the
continuity of care that primary care physicians can offer. I could see
patients through their whole lives. Since I didn't have large loans to
pay, I could do what I wanted and have a calling. It became a
no-brainer."
Not many doctors have that luxury, since the average
medical school student owes $140,000 in loans at graduation. That's a
major reason not many doctors are becoming primary care physicians:
They earn the lowest salary of all physicians, according to the medical
search and consulting firm Merritt Hawkins & Associates' 2010
Review of Physician Recruiting Incentives.
At $180,000 for pediatricians and $175,000 for family practitioners,
primary care providers make an awful lot less than the typical
orthopedic surgeon, who makes $519,000, or a urologist, who earns
$400,000, according to the Merritt Hawkins data. That disparity has
contributed to a serious shortage of primary care doctors. The American
Medical Association predicts a shortage of 35,000 to 40,000 primary
care physicians by 2025.
Why do primary care physicians make less
than specialists? One reason is they simply don't bring in the same
amount of revenue per doctor, according to a Merritt Hawkins survey of
hospital revenues. The 114 hospitals that participated in that survey
reported that primary care physicians brought in an average of $225,383
less per year than specialists, between 2002 and 2010.
One reason
for that is the medical profession's fee structure. Medicare and
private insurers cover medical expenses based on valuations provided by
a committee of the American Medical Assocation that assigns every
medical task a "relative value unit" based on the skill and expertise
required to perform it. If your work as a doctor expends more relative
value units, you generally end up earning more, so the committee's
assessment is very important.
"The group that sets the standard
for this is composed of doctors, mostly specialists," says Phil Miller,
vice president of communications at Merritt Hawkins. "Some people say
because this group is made up of mostly specialists, they weight their
own work more." The committee doesn't rate the primary care physicians'
face-to-face interactions with patients as highly as procedures that
specialists perform, so primary care physicians end up earning less.
Family
practitioners earned $16,000 less in 2009 than certified registered
nurse anesthetists, registered nurses who have worked in the field for
at least one year and then return to school for 24 to 36 months to
qualify for a master's degree. That's a lot less training than the four
years of medical school, one year of internship and then residency you
have to go through to become a primary care physician.
"You're
talking about twice as much money to be a specialist, a better
perceived lifestyle and more time off," says Tommy Bohannon, senior
director of development and training at Merritt Hawkins.The AMA
predicts that the shortage of internists will get worse as baby boomers
age and require additional medical attention.
The AMA and the
American Academy of Family Physicians are discussing several possible
ways of addressing the shortage. They include offering scholarships to
students who go into and stay in primary care, and loan forgiveness for
primary care physicians who work in underserved areas.
Epperly
also suggests distributing National Institutes of Health grants, a
large source of funding for public medical schools, based on how many
primary care physicians the schools produce. "If your percentage of
primary care physicians is low, you don't get as much of that money,"
he says.
There has been talk of creating more places for students
in medical schools, but that would take a long time to have an effect,
since those students need not just four years of medical school but
also a one-year internship, about three years for a residency and maybe
three to five years of regular practice before they reach their full
effectiveness. As a result, Bohannon says, there can't be a real
increase in supply before about 2030.
Still, getting more primary
care physicians out there is crucial for improving Americans' health,
Epperly says: "Studies show that if you have a regular primary care
physician to go to, your health will be better and your costs will be
lower, because the treatment can be preemptive. If I've cared for you
for 10 years, you can call about a question and not need to come in. I
connect the dots for you for your health care. That's what we're
missing in our system."
1. Family Practice

Image Source/Getty Images
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Average salary, 2009-2010: $175,000
2008-2009: $173,000
2008-2009: $172,000
2006-2007: $161,000
2. Pediatrics

Damir Cudic/iStockphoto
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Average salary, 2009-2010: $180,000
2008-2009: $171,000
2008-2009: $159,000
2006-2007: $159,000
3. Internal Medicine

Nicholas Monu/iStockphoto
|
Average salary, 2009-2010: $191,000
2008-2009: $186,000
2008-2009: $176,000
2006-2007: $174,000
4. Family Practice with Obstetrics

Andersen Ross/Getty Images
|
Average salary, 2009-2010: $200,000
2008-2009: $184,000
2008-2009: $184,000
2006-2007: $159,000
5. Hospitalist

Jose Luis Pelaez/Getty Images
|
Average salary, 2009-2010: $208,000
2008-2009: $201,000
2008-2009: $181,000
2006-2007: $180,000