Where Do Millennial Doctors Make the Most Money (and How Much Do They Make)?

Even though most Americans would be thrilled to receive the average physician’s salary, the reality is that compensation has failed to keep pace with inflation for many physicians. A recent Medscape survey looked at the financial realities for millennial physicians, which the report defines as doctors between the ages of 28 and 39. Here are some of the key takeaways from that report.

Average Earnings for Millennial Physicians

The average compensation for millennial physicians rose 4% from 2022 to 2023. Primary care physicians (PCPs) fared slightly better, with their average annual income increasing from $257,000 to $271,000. In comparison, specialists saw their income stay mostly flat, rising from $355,000 to $357,000.

Even though PCPs saw their average income increase by 5%, many found it disheartening to see the substantial pay gap between PCPs and specialists. According to the Medscape report, many millennial PCPs feel their specialty is undervalued.

Average Income Among Genders

Like other age groups, millennial physicians experienced a gender pay gap. Among all physicians, men earn an average annual salary of $374,000, while women earn an average yearly salary of $302,000. The income gap is even wider among specialists, with male specialists earning an average annual income of $393,000 and female specialists earning an average yearly income of $317,000.

Average Income Based on Location

One interesting finding in the Medscape report is that Midwestern doctors tend to earn the highest average salaries. Here’s the salary breakdown by region:

• West: $332,000
• Midwest: $343,000
• South: $328,000
• Northeast: $300,000

Although physicians in the Midwest earn the highest incomes, these states often have the lowest cost of living. This gives millennial physicians an opportunity to save more money and reach their financial goals at a much faster pace.

Average Bonuses

While the average salary increased year-over-year for millennial doctors, the average bonus did not. The average bonus for all physicians was $39,000, down from $51,000 the previous year. PCPs earned an average bonus of $23,000, while specialists earned an average bonus of $43,000.

Average Income Based on Practice

Millennial physicians working in office-based single-specialty group practices earned the most, with an average annual income of $358,000. Office-based multi-specialty group practices came in at a close second with an average annual income of $355,000. Physicians working out of outpatient clinics earned the least with an average annual salary of $278,000.

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How Do Millennial Physicians Feel About Their Salaries?

The report found that 51% of millennial physicians are unhappy with their income given the demands that come with the job. This percentage has increased since 2022, when only 46% of millennial physicians said they didn’t feel fairly compensated for their work.

However, they aren’t alone in this sentiment—56% of physicians aged 50-54 and 55% of physicians aged 55-59 felt underpaid. The average medical school graduate carries $215,100 in student loan debt, which likely affects how doctors think about their income.

But what’s interesting about these breakdowns is that most millennial physicians said compensation had little to no impact on their choice of specialty. The Medscape report found that most millennial physicians saw their specialty as a calling and chose one that aligned with their interests.

Only 2% of millennials said compensation was their primary factor in choosing a specialty, and 21% said it was a leading factor. However, 48% of millennial physicians said compensation was a minor factor, while 29% said it played no role in their decision.

How Different Specialties Feel About Their Compensation

Roughly 61% of millennial physicians working in psychiatry and anesthesiology are happy with their compensation. Physicians working in dermatology and emergency medicine came in at a close second—60% of doctors working in these specialties are satisfied with their income. Pediatricians and rheumatologists fared the worst—only 39% of pediatricians and 38% of rheumatologists are happy with their income.

How Millennial Physicians Earn Extra Income

About one-third of millennial doctors take on extra work to supplement their income. About 18% take on other medical-related work, 15% do medical moonlighting, 8% take on more hours in their primary physician role, and 5% do some type of non-medical-related work.

What Millennial Doctors Like and Dislike About Practicing Medicine

When asked what they liked about practicing medicine, 28% of millennial physicians said they enjoy being good at what they do and finding patient diagnoses. And 26% said they appreciate the relationships they’ve built with their patients, while 18% said they felt like they were making the world a better place.

However, 25% said that dealing with difficult patients could be one of the most challenging aspects of the job, while 20% pointed to the long hours required.

Meanwhile, 15% felt frustrated that working as a doctor comes with so many rules and regulations.

Would Millennial Doctors Choose Medicine Again?

Despite the occasional misgivings about their income, 68% of millennial doctors said they would choose to practice medicine again. The report found that the answer to this question seems to improve with age:

• 73% of physicians aged 55-59 said yes.
• 76% of physicians aged 60-64 said yes.
• 83% of physicians aged 65-69 said yes.

However, while most millennial physicians are happy with their chosen specialty, they don’t necessarily feel the same about their workplace. If given the chance to start over, 84% would choose the same specialty, but only 38% would choose the same practice setting.

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Key Takeaways from the Report

The bottom line is that while the average physician’s salary is increasing, it’s not increasing by much. This can be frustrating for millennial doctors, especially if you’re still paying off your student loan debt and dealing with the aftereffects of inflation.

Fortunately, physicians can continue to find ways to make extra income with medical moonlighting. And don’t overlook the impact of geographic arbitrage—by living in a state like Illinois, Missouri, or Minnesota, you could earn a higher income and pay far less in cost of living expenses.

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