net earnings rose in 2005
"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.
Management Survey Results 2006
practice revenue for GP/FPs and selected specialties
here for pdf chart
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.
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
median income, after tax-deductible expenses,
but before income taxes, in US funds. Source: