Medical Archives - Panacea Financial Banking for Doctors, by Doctors Fri, 14 Apr 2023 16:27:42 +0000 en-US hourly 1 https://wordpress.org/?v=6.2 How To Pay Off Credit Card Debt For Doctors & Doctors-In-Training https://panaceafinancial.com/resources/paying-off-credit-card-debt-for-medical-students/ Fri, 14 Apr 2023 00:18:50 +0000 https://panaceafinancial.com/?p=959 We get it, because we’ve been there. As a doctor or doctor-in-training, you are likely incredibly busy. We know speed and convenience are crucial, so when it comes to paying for anything,  it’s easy to reach for a credit card.  Credit card debt can quickly become overwhelming, especially for busy physicians, dentists, and veterinarians who …

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We get it, because we’ve been there. As a doctor or doctor-in-training, you are likely incredibly busy. We know speed and convenience are crucial, so when it comes to paying for anything,  it’s easy to reach for a credit card. 

Credit card debt can quickly become overwhelming, especially for busy physicians, dentists, and veterinarians who are in training or practice. According to the AAMC, 13% of graduating medical students carry an average of $5,000 in debt. This rises while in training and practice, with 24% of physicians carrying credit card debt.

If not managed carefully, this debt can hurt your credit score and impact your financial future. Fortunately, there are several steps you can take to pay off your credit card debt and reduce your interest payments.

Why Does Interest Rate Matter So Much?

You’ve seen APRs and interest rates next to credit card offers, but it’s difficult to translate those numbers into the actual impact it will have on your bank account. The truth is that the amount of interest you’re charged makes a massive difference to how much you need to repay and how long you will be paying it off. 

As an example, let’s assume you have $10,000 in debt on your credit card and that you can afford to pay $250 every month:

Loan Amount Interest Rate Time To Pay Off Total Interest Paid Total Paid
$10,000 20.40% APR (average rate) 5 years, 6 months $6,491 $16,491
$10,000 24.15% APR (average rate) 6 years, 8 months $9,797 $19,797
$10,000 29.49% APR (high interest card) 12 years, 0 months $25,904 $35,904

Compared to the lowest interest rate credit card, repaying the high-interest credit card will lead to you repaying the debt for an additional six-and-a-half years, and you’ll pay almost four times as much in interest!

Try some numbers for yourself to see how much of a difference interest rates make.

How Increasing Your Minimum Payment Makes An Impact

Regardless of how much interest you’re paying, if you are able, it is important to increase the minimum you repay each month. Let’s see what happens when you squeeze another $100 out of your budget and put it towards your credit card debt, repaying $350 a month against that same $10,000 balance.

Loan Amount Interest Rate Total Interest Paid @ $250 Per Month Total Interest Paid @ $350 Per Month Total Savings Over Life Of Loan By Increasing Your Monthly Payment
$10,000 20.40% APR $6,491 $3,527 $2,964
$10,000 24.15% APR $9,797 $4,646 $5,151
$10,000 29.49% APR $25,904 $6,841 $19,063

What If I Refinance My Credit Card Debt?

Refinancing your credit card debt can be a great option to lower your interest rate, reduce your monthly payments, and simplify your life. You can search for a personal loan with interest rates less than your credit card. This will reduce the amount of interest you end up paying, saving you money. Let’s take a look at how much you could save over a five-year loan term.

Loan Amount Credit Card Interest Rate Total Interest Paid – Credit Card  Personal Loan Interest Rate Total Interest Paid – Personal Loan Total Savings With A Personal Loan
$10,000 20.40% APR $6,742 9.36% APR* $2,759 $3,983
$30,000 24.15% APR $20,227 9.36% APR* $8,279 $11,948
$50,000 29.49% APR $33,711 9.36% APR* $13,798 $19,913

These savings speak for themselves. Choosing a PRN Personal Loan over a credit card can save you thousands of dollars in interest by the end of the loan. 

If you have multiple credit cards weighing you down, credit card consolidation is another type of refinancing that could help you. In a Medscape survey from 2022, 41% of physicians report having more than 5 credit cards. If you have multiple credit cards with debt, you can consolidate them, so you’re only making a single payment each month, saving you time! 

Doctors can experience difficulty with personal loans because of the likelihood of high rates due to their bad credit after residency and other life events. Panacea Financial’s PRN personal loan removes this barrier by not basing your approval on your credit score.

Additionally, PRN loans have no fees and reduced or zero payments during an introductory period based on where you are in your career. Whether in your last year of school, in residency or already in your career, these personal loans can be a great alternative to credit cards or a better option for credit card debt consolidation.

Steps For Overcoming Credit Card Debt

  1. Whenever you can, pay more than the minimum payment. Squeeze an extra $100 out of your budget every month and put it towards your card debt. 
  2. If you’re so busy you forget to make payments on time, a great safeguard is to go to your credit card provider’s website, look at the minimum monthly payment, and set an autopay amount of $100 or $200 more.
  3. Get an app, text or email notification of your credit card balance on a daily basis. This will help you stay aware of how much you owe and help you be mindful of future purchases.
  4. If you want to consolidate your credit card debt, consider refinancing to simplify your life and reduce your payments. 
  5. Ask for help! We have concierge staff available 24 hours a day, 7 days a week.

We know how challenging it is to manage your debt as a doctor or doctor-in-training—we’ve been there. It’s so tempting to just spend “that little bit more” on a credit card, after all, you deserve it for all the time and effort you’ve put into your career. 

Trust us, we’re not saying you have to live like a monk! But, it’s much better to get it under control early so you’re not struggling with it years down the line.

We’re Here For You 

Here at Panacea Financial, we were formed for doctors, by doctors, to provide the financial support you need. We understand your challenges—inadequate cash flow, loan debt, huge upfront costs—and we know how to help. We’ll support you through your entire journey from student to resident to practicing doctor.

*Example chart shows calculations based on a 5 year Panacea Financial PRN Personal Loan with a fixed rate of 9.36% APR which is the average median funded APR for Panacea PRN Personal loan borrowers who took out a loan with a 5 year term from January 1, 2022-January 1, 2023.

Lowest rates are reserved for the most qualified borrowers. The ‘High-Interest Rate Credit-Card’ APR shown is the average credit card APR reported by Wallethub for Q4 2022 under their Good Credit category. The savings estimate also assumes that the borrower doesn’t take out any additional credit card debt during the same period. Both calculations assume 60 total monthly payments and no pre-payment amounts.

Panacea Financial, a division of Primis. Member FDIC.

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Compensation Differences Between Primary Care & Specialty Physicians https://panaceafinancial.com/resources/compensation-differences-between-primary-care-specialty-physicians/ Wed, 12 Apr 2023 14:54:09 +0000 https://panaceafinancial.com/?p=6396 Specialists are often paid more than primary care physicians. Primary care physicians may have better work-life balance than those who specialize. The choice between primary care and a specialty is dependent on your interests, skills, and priorities. When it comes to the medical profession, doctors are divided into two major categories – primary care physicians …

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  • Specialists are often paid more than primary care physicians.
  • Primary care physicians may have better work-life balance than those who specialize.
  • The choice between primary care and a specialty is dependent on your interests, skills, and priorities.

When it comes to the medical profession, doctors are divided into two major categories – primary care physicians (PCPs) and specialists. Both play an essential role in the healthcare system, but they differ in their training, responsibilities, and compensation. Knowing salary, benefits, work-life balance, and other factors can help you understand the area you want to pursue.

Salary

Are PCPs or specialists paid more?

According to the Medical Group Management Association’s (MGMA) Physician Compensation and Production Survey, the average annual compensation for PCPs in 2021 was $268,000, while specialists earned an average of $458,000 per year. A 2022 report from Medscape provides similar numbers, finding that PCPs make $260,000 and specialists make $368,000 annually. 

The MGMA survey found that the highest-paid specialists were orthopedic surgeons, who earned an average of $700,000 per year, followed by cardiologists, who earned an average of $675,000. Meanwhile, Medscape found plastic surgery to be the highest earning salary with an annual compensation of $576,000 with orthopedics ($557,000) and cardiology ($490,000) following behind.

How is salary changing for PCPs and specialists?

Between 2015 and 2022, primary care salaries increased by 33%, and specialist salaries increased by 30%, according to Medscape.

How do bonuses differ for PCPs and specialists?

According to a Medscape survey, 57% of physicians receive an incentive bonus. Average bonuses for the specialties that are often PCPs, like family medicine ($30,000), internal medicine ($29,000), and pediatrics ($28,000), are generally lower than most specialists’ bonuses. Orthopedics is at the top with an average bonus of $126,000, followed by ophthalmology ($100,000) and cardiology ($85,000). Other specialties like psychiatry ($33,000) and neurology ($29,000) have bonuses similar to those of PCPs.

How does the gender wage gap differ between male and female physicians?

The gender salary gap is fairly similar between PCPs and specialists, according to Medscape. In primary care, men earn 25% more than women—with average salaries of $285,000 and $228,000 respectively. In specialties, men earn 31% more, though this has declined in recent years. Male specialists earn an average of $402,000, while female specialists earn an average of $307,000.

Benefits

While compensation is a significant factor in a physician’s career, benefits also play a critical role in attracting and retaining talent. Most physicians receive benefits such as health insurance, malpractice insurance, retirement plans, and vacation time. However, the level of benefits could vary depending on your employer and specialty.

According to the MGMA survey, 95% of PCPs received health insurance benefits, while 90% received malpractice insurance. In contrast, 97% of specialists received health insurance benefits, and 92% received malpractice insurance. The survey also found that specialists were more likely to receive other benefits, such as continuing medical education (CME) allowances, signing bonuses, and productivity bonuses.

Work-Life Balance

One of the most significant differences between PCPs and specialists is their work-life balance. PCPs typically work regular hours, seeing patients during the day and having evenings and weekends off. In contrast, specialists may have more irregular schedules and be on call for emergencies.

Patient Interaction

Another significant difference between PCPs and specialists is their patient interaction. PCPs see a wide range of patients, from children to seniors, and are responsible for managing their patients’ overall health and wellness. In contrast, specialists focus on a specific area of medicine, such as cardiology or orthopedics, and see patients with specific conditions or diseases.

As a result, PCPs may have a more diverse patient population, while specialists may have a more specialized and focused practice. This can impact their daily workload and the types of cases they see.

Making the choice

PCPs and specialists both play critical roles in the healthcare system, but they differ in their training, compensation, and some data on burnout differences.

Ultimately, the choice between becoming a PCP and a specialist depends on individual interests, skills, and priorities. Those who enjoy developing relationships with a broad range of patients and taking a holistic approach to care may find primary care to be more fulfilling. On the other hand, those who enjoy mastering a specific area of medicine and working with complex cases may find specialty medicine to be more rewarding.

It is also worth noting that the healthcare system relies heavily on PCPs to provide preventative care and manage chronic conditions, which can improve patient outcomes and reduce overall healthcare costs. However, the shortage of PCPs in some areas can lead to burnout and higher patient volumes for those who do choose this path.

In contrast, specialists are often in high demand, particularly in areas such as surgery, cardiology, and oncology, which can lead to more competitive salaries and better job security. Both primary care and specialty care are vital to providing quality healthcare, and both offer unique rewards and challenges.

Find more doctor-specific articles on our Resources page or check out: 

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How Much Down Payment Do I Need To Buy A House? https://panaceafinancial.com/resources/how-much-down-payment-do-i-need-to-buy-a-house/ Tue, 11 Apr 2023 16:31:29 +0000 https://panaceafinancial.com/?p=6382 A down payment is the amount of cash you pay upfront on a large purchase, like a home or car.  Lenders may require down payments from 0% to 25%, depending on several factors, including the loan type and the borrower’s credit profile. Doctor mortgages can help healthcare professionals purchase a home with a smaller down …

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  • A down payment is the amount of cash you pay upfront on a large purchase, like a home or car. 
  • Lenders may require down payments from 0% to 25%, depending on several factors, including the loan type and the borrower’s credit profile.
  • Doctor mortgages can help healthcare professionals purchase a home with a smaller down payment, no PMI, and more flexibility on employment and debt-to-income ratio.

When it comes to buying a house, one of the biggest hurdles for most is coming up with the down payment. Many homebuyers wonder how much they need to save for a down payment, as it can have a significant impact on their ability to secure a mortgage, the interest rate they qualify for, and their monthly mortgage payments. 

What is a down payment?

A down payment is the amount of cash you pay upfront on a large purchase, like a home or car. The down payment is calculated using a percentage of the total purchase price, and most buyers will take out a loan to finance the remainder of the purchase.

What is a typical down payment?

Lenders may require down payments from 0% to 25% of the purchase price, depending on the loan type and the borrower (their credit score, debt-to-income, and how they will occupy the home). 

How much do I need for a down payment based on my loan type? 

Down payment requirements can vary greatly based on the type of mortgage. Let’s take a look at how conventional, FHA and doctor mortgages’ down payments differ.

Conventional mortgage

Conventional loans are mortgages from private lenders that aren’t government backed. These loans require as little as 3% down (for first time home buyers) and up to 20% down (for investment purchases).

With a smaller down payment (less than 20% down), the buyer will often need to pay for private mortgage insurance, which can vary from 0.5% to 1% of the total loan amount per year.

Definition: Private mortgage insurance (PMI) – a type of mortgage insurance typically required for conventional loans with greater than 80% loan-to-value. It protects the lender if you stop making payments on your mortgage.

FHA mortgages

FHA mortgages are loans that are insured by the Federal Housing Administration (FHA) that are designed to help first-time homebuyers or those with lower credit scores or income levels. FHA mortgages typically require a down payment of 3.5% of the purchase price of the home. 

For a $200,000 home, the down payment would be $7,000. However, it is important to note that similar to conventional loans, borrowers will need to pay for FHA mortgage insurance, which can add to the overall cost of the loan. These loans offer greater flexibility in terms of fico and debt-to-income requirements.

Doctor mortgages

Doctor mortgages are specialized loans that are available to medical professionals, including physicians, dentists, and veterinarians. These loans are designed to help healthcare professionals purchase a home with a smaller down payment, no PMI, and more flexibility on employment and debt-to-income ratio.

The down payment requirement for a doctor mortgage can vary depending on the lender, but it is typically around 5% to 10% of the purchase price of the home. Some doctor mortgage lenders offer 0% down payment options.

What are the benefits of making a large down payment?

  • Smaller monthly payments – The higher the down payment, the lower the monthly payments a buyer will have to make. If you are trying to purchase a $350,000 home, the difference between 3% down and 20% down at a 6.5% interest rate equates to almost $400 less each month.
  • Interest savings over time – Not only will your monthly payments be less because of a larger down payment, you will also pay less for the mortgage overall. For the same priced home, you will save almost $60,000 in interest over the course of a 30-year mortgage.
  • Lack of PMI – Depending on loan terms and down payment amount, you may be able to skip the additional monthly cost of private mortgage insurance, or reduce the amount required.
  • Better terms – With a bigger down payment, a lender may offer your lower rates, or you may qualify for a higher purchase price.

What are the drawbacks of making a large down payment?

  • Stretching your savings thin – Making a larger down payment to the detriment of your savings account can be a bad position for a new homeowner. It’s important to keep a portion of your savings set aside for emergencies, and cutting into that for a down payment could put you in need of money later down the road.
  • Delaying your purchase – Saving for a large down payment can delay your time to enter the market. During this time, home prices, and interest rates, could be rising, which will limit your purchasing power.
  • Limiting investments or retirement – Some homebuyers will forgo investments and retirement savings to accumulate a higher down payment. Solely saving for a down payment while forgoing other financial goals could affect your finances long term.

Mortgage Loans for Doctors

We understand the unique needs of doctors, because we are doctors ourselves. That’s why we have partnered with Primis Mortgage–to bring you excellent service in every step of the mortgage process. We all work together to help you purchase or refinance your home, on your schedule, answering any questions and making sure you have what you need to make the best decision.

This partnership aims to provide one of the best mortgages for doctors by offering competitive mortgage rates and a dedicated mortgage team that will be by your side, guiding you through each step from start to finish. You will benefit from a streamlined approach to financing with prequalification, progress updates and communication with your loan officer, all within a mobile app.

Need help finding a home or understanding home buying financially?

Finding your dream home or the right mortgage to finance your dream home can be difficult, but a team behind you can make it a little easier. Our Build Your Team program can get you connected to real estate agents and financial advisors to help you throughout the process. Get connected for free by visiting our page here.

The information and advertised terms, including interest rates, are from Primis Mortgage Company (www.nmlsconsumeraccess.org NMLS# 1894879; Equal Housing Lender). Mortgage applications can only be submitted in those states that Primis Mortgage is approved to lend. Panacea Financial is not a mortgage lender in any transaction and does not make mortgage loans, mortgage loan commitments or lock-rates related to mortgage loans. All credit decisions for mortgage loans, including loan approval and the conditional rates and terms offered, are the responsibility of Primis Mortgage Company and will vary based upon the loan requested, the borrower’s financial situation, and criteria determined by Primis Mortgage Company. Not all consumers will qualify for the advertised rates and terms. All information provided is subject to verification. Other terms and conditions may apply. Panacea Financial does not guarantee that Primis Mortgage Company will make you a conditional loan offer and nothing herein or on this website is considered a commitment to lend. Panacea Financial is a division of Primis Bank and Primis Mortgage Company is a subsidiary of Primis Bank.

Equal Housing Lender

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Tips For Budgeting, Benefits & Expenses During Residency From Physicians https://panaceafinancial.com/resources/tips-for-budgeting-benefits-expenses-during-residency-from-physicians/ Fri, 31 Mar 2023 14:33:15 +0000 https://panaceafinancial.com/?p=6376 The transition from medical school to residency can be a challenging task, especially with limited income to cover living expenses and other needs. With long hours and a demanding workload, residents often feel overwhelmed and added financial stress doesn’t help. New residents face challenges adjusting to their new salaries, budgeting, covering expenses, and taking advantage …

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The transition from medical school to residency can be a challenging task, especially with limited income to cover living expenses and other needs. With long hours and a demanding workload, residents often feel overwhelmed and added financial stress doesn’t help.

New residents face challenges adjusting to their new salaries, budgeting, covering expenses, and taking advantage of employee benefits. We wanted to talk with physicians who have been there before to share tips on how to overcome these.

Here are insights and personal experiences from Disha Spath, MD, CEO and Founder of The Frugal Physician, Nii Darko, DO, MBA, FACS, Host of Docs Outside the Box Podcast, and Leif Dahleen, MD, Physician on FIRE, about salaries, budgets, expenses and benefits.

For many residents, their training may be the first time they have had a salary. How should residents think about their salary and budget? 

DS: Residency is a great time to start tracking expenses. While the salary isn’t as high as attending salaries, it is still around the average national salary. It is the first time many of us have made a real salary. 

If a resident can get a good understanding of their necessary expenses at this time, they can use it as a baseline to devise a reasonable budget when income increases as an attending. If they can get in the habit of saving a small percentage of their salary for retirement in a Roth IRA, that training will really put them ahead of the game as an attending when it comes to wealth building.

LD: Hopefully, it’s enough to get by. Depending on where you live and whether or not you’re supporting anyone besides yourself, that may or may not be the case. 

Either way, you’re going to have to get by on this amount of money for at least a few years, unless moonlighting opportunities present themselves and you actually have the time and energy to take advantage of them.

Residency is a great time to “live (and spend) like a resident” and not a good time to go into debt, especially credit card debt, with the assumption that you can easily pay it off when you become an attending physician. Circumstances change, you’ve probably got major student loan debt, and there’s no good reason to dig that hole any deeper. Live within your means; it’s not like you have a lot of time to go out and spend extravagantly, anyway.

ND: Budgeting your salary as a medical resident can seem daunting, especially if this is your first job ever. Look at it this way, it’s an important step in taking control of your finances and giving you the peace of mind you need during this challenging time. Here’s some tips to keep in mind:

  • Determine your monthly income
  • Create a budget
  • Prioritize saving
  • Look for ways to cut costs
  • Keep track of your spending

Check out this clip from Episode 303 of Docs Outside the Box for more insight into your new salary as resident salary.

Sometimes, a resident doesn’t receive their first paycheck until several weeks after the move. What is the best suggestion for paying for living expenses during this time of no income? 

DS: Hopefully, they will have read this article and planned ahead for this time! The resident should have saved some money for these few weeks. If not, leaning on family is ok. Try not to go into credit card debt, but if it’s necessary, treat it like a fire and pay it off as soon as the first check hits the bank.

LD: This shouldn’t come as a surprise, so it’s obviously wise to have some money set aside to cover your expenses as you make that transition. The money can come from working a bit between medical school and residency, taking out more student loans than necessary as a fourth-year student, borrowing from friends or family, or even from a short-term lender that treats physicians fairly. 

ND: It’s important to understand the timeline for when you will receive your first paycheck and make a plan for potential gaps in income. Heads up: the biggest expense will most likely be housing, as you will have to pay a security deposit and the first month’s rent. You may have to set aside money from what’s left of student loans or savings. Consider asking for help from family if possible. If you know they are planning gifts for graduation, it doesn’t hurt to ask them to make it cash gifts. 

We live in a gig economy nowadays, so don’t sleep on freelance gigs (i.e Uber / Lyft) as a means to earn additional income during the gap period. If you’re really in a bind, you can consider applying for a personal loan or credit card with a low-interest rate as a backup option. Many medical schools offer these loans. However, it’s important to use these resources responsibly and avoid accumulating too much debt.

What should all residents know about benefits offered by their residency programs? What should they take advantage of? 

DS: Residents can often get a very reasonable disability insurance policy during residency, and there is often an option to extend that into attending-hood. If the policy is a true own-occupation policy (one that will cover the resident if they cannot perform their specific job, irrespective of whether they can work in a different field) then it would be a good idea to keep it. Similarly, if they can get a reasonable life insurance policy as a resident, it will likely be more economical given your younger age and hopefully less medical issues. 

Residency is a great time to start a Roth IRA, along with any other 401k/403b offered by the residency, if you have any leftover money at the end of each month to get a headstart on saving for retirement. 

Student loans are another large topic to be addressed. If your program offers any free debt counseling, I’d take that. Consider starting to make loan payments via an income-driven plan in residency, instead of forbearance, to get credit for those payments via Public Service Loan Forgiveness. Due to your lower salary, the payments will be much lower than any other time in your career. 

LD: Certainly, one should know what the benefits package entails, and that’s going to vary from place to place. Health insurance is paramount, and there will likely be some additional insurance coverage offered. Group disability insurance is usually a poor substitute for having your own true, own-occupation, long-term disability insurance policy, and such coverage is usually cheaper to obtain while in residency.

If you’re lucky enough to have a 401(k) plan with a match, do whatever you can to get that free money. If you have to take on debt to earn an instant 100% return, that’s going to work out in your favor 100% of the time.

ND: Residency is not just a job. It’s an experience that will help you succeed professionally and personally. Your residency has benefits that you should investigate as soon as day one. 

Residency programs offer health insurance to their residents, which can help you stay healthy and save on medical expenses. Take advantage of your program’s retirement savings plans (e.g., 401(k) or 403(b)), as they can help you build wealth in the future. Do not forget about the educational opportunities like conferences, workshops, and seminars that can help advance your career. Be sure to visit the Human Resources department and ask them what other benefits you’re eligible to receive.

Read more about the transition to residency

We spoke to Disha, Nii, and Leif about other topics surrounding the transition to residency. Check out:

Find more residency-specific guides on our Resources page, or check out one of these:

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Renting Vs. Buying & Other Tips For New Residents, From Physicians https://panaceafinancial.com/resources/renting-vs-buying-other-tips-for-new-residents-from-physicians/ Fri, 31 Mar 2023 14:11:02 +0000 https://panaceafinancial.com/?p=6374 As a medical student transitioning into residency, you are about to embark on a new chapter in your life and the next step on your journey to becoming a physician. So much is changing in a short amount of time, and there are many decisions to be made, including where you will live. Both renting …

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As a medical student transitioning into residency, you are about to embark on a new chapter in your life and the next step on your journey to becoming a physician. So much is changing in a short amount of time, and there are many decisions to be made, including where you will live.

Both renting and buying have their own advantages and disadvantages, and the choice depends on your personal needs and future plans. To help you navigate this decision, we spoke to three physicians who have been there before.

Here are insights from Disha Spath, MD, CEO and Founder of The Frugal Physician, Nii Darko, DO, MBA, FACS, Host of Docs Outside the Box Podcast, and Leif Dahleen, MD, Physician on FIRE, about their tips for renting vs. buying and one thing they want new residents to know.

What tips do you have for residents when considering renting vs. buying in training? 

DS: The decision to rent or buy in residency is a nuanced one based on future plans and location. Generally speaking, it’s a good idea to rent if the projected time one is going to be there is shorter than 4-5 years. There are a lot of costs and headaches associated with homeownership that make it undesirable for residents, especially in this high interest-rate environment. 

However, buying can be the right choice if someone is planning on staying to work in the same town in which they are doing residency. Buying a home in residency can also be a good way to kickstart a rental portfolio. My husband and I bought our residency home with plans to turn it into a rental property later, and that worked out for us. But, we specifically bought a house that had good rental potential in a less-than-desirable neighborhood at the time. 

It is important to run the numbers and see what works in your individual situation. There are many rent vs. buy calculators out there, such as this one: https://www.calculator.net/rent-vs-buy-calculator.html

Also, if considering buying a property for rental potential, make sure it cash flows positive (results in a net gain at the end of the year, after all expenses are accounted for) by running the numbers on a calculator such as this: https://www.calculator.net/rental-property-calculator.html.

LD: Do as I say, not as I did. I bought a one-bedroom condo, and it worked out okay, but I recommend renting to the vast majority of residents.

The break-even point for owning vs. renting is five to seven years, on average, which is on the longer end of the residency +/- fellowship spectrum, and it’s common for those who move on to fellowship to do so in a different city. Additionally, some interns and residents realize they chose the wrong specialty for them, and they may need to move to join a program in a field better suited to them. It’s much easier and less costly to break a lease than it is to sell a home you’ve only lived in for a handful of months.

Some people feel that renting is “throwing money away,” and it’s true that owned homes can and usually do appreciate, but there are a lot of costs of home ownership that are often underappreciated or ignored when running the numbers.

You’ll hear anecdotes from those who bought the right place at the right time, lived there for 6+ years, and made a tidy profit when moving on, but I believe most residents should opt to rent.

ND: As a medical resident, you have a lot on your plate. Between long hours at the hospital, studying for board exams, and trying to maintain some semblance of social life, the last thing you want to worry about is finding a suitable place to live.

Deciding on whether to rent vs. own is a decision that can add unneeded stress during your first year of residency, especially if you’re unfamiliar with the city you’re moving to. My advice to first-year residents is always to rent first. Here are some tips to keep in mind when looking for a place to live:

  • Look for proximity to the hospital
  • Consider the neighborhood
  • Determine how much you can afford to pay in rent each month
  • Check for lease flexibility in terms of lease length

Check out this clip about why residents should rent from Episode 264 of Docs Outside the Box podcast.

What is one tip you would give to those transitioning into residency? 

DS: I would remind them that their first task as a resident is to learn their craft. So focus on learning medicine and don’t stress if you don’t understand all of personal finance before starting as an attending. If there is an easy month, pick up a personal finance book and give it a read. Just knowing the basics will give you a huge head start. 

LD: You’ll work harder in the next 3 to 7 years than you ever have and ever will. Remember, it gets better, but now is the time to focus on becoming a better doctor. 

ND: Learn to ask for help when it’s needed. It’s expected that you will not know everything when starting residency. As a medical student, you may have been used to working independently, but as a resident, you’ll be part of a healthcare team including attendings, nurses, and other healthcare professionals. 

Don’t hesitate to reach out for help or advice when needed, especially when it involves assistance with a difficult patient case. Asking for help is a sign of strength and maturity, not weakness. Ultimately, being open to feedback and guidance will help you provide the best possible care and help you grow as a physician.

Read more about the transition to residency

We spoke to Disha, Nii, and Leif about other topics surrounding the transition to residency. Check out:

Find more residency-specific guides on our Resources page, or check out one of these:

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Is My Money Safe In The Bank Right Now? https://panaceafinancial.com/resources/is-my-money-safe-in-the-bank/ Tue, 28 Mar 2023 14:25:17 +0000 https://panaceafinancial.com/?p=6365 Recent weeks have been tumultuous for some banks, leading to some concern among customers about the safety of their deposits. In the wake of two bank failures, it is natural to worry about the security of your funds, and you may have questions about what measures are being taken to protect your money. In this …

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Recent weeks have been tumultuous for some banks, leading to some concern among customers about the safety of their deposits. In the wake of two bank failures, it is natural to worry about the security of your funds, and you may have questions about what measures are being taken to protect your money.

In this article, we give you a brief overview of the recent events, how to know your funds are safe, and what Panacea is doing to protect your money.

Here’s What Happened

On Friday, March 10, bank regulators forced a shutdown of Silicon Valley Bank (SVB), the 16th largest bank in the U.S., due to their inability to meet deposit obligations. This marked the largest bank failure since 2008. 

On Sunday, March 12, bank regulators shuttered Signature Bank, marking the third-largest bank failure in U.S. history. The federal government provided a full backstop on losses, ensuring that no depositor at either bank would lose any money. 

How Did This Happen? 

SVB had been the pillar of the tech and venture capital (VC) ecosystem. From 2018 to 2021, its VC banking clients were especially flush with cash and kept these deposits at SVB. The bank invested these excess deposits into longer-term securities that declined in value, due to rising interest rates. 

Due to rising interest rates, VC customers began rapidly taking money out of SVB and sending it to other banks to find higher rates. This forced SVB to sell the previously purchased securities at a substantial loss in order to meet its deposit obligations, sparking a panic amongst the remaining deposit customers.

The failure of Signature Bank, a bank that worked primarily with tech and crypto, was a result of panic after the sudden collapse of SVB. Customers withdrew more than $10 billion in deposits following the first bank’s closing.

Is My Money Safe in a Bank?

The security of your money in a bank account is contingent on two primary factors: where it is and how much you have. Many banks are FDIC insured, meaning $250,000 per depositor, per issued bank, for each account ownership category is insured. 

If your bank is FDIC insured and it fails, you will receive all of your money back up to the $250,000. If your bank is not FDIC insured, you won’t receive your money back. If your balance is greater than $250,000, any amount over that limit is not insured. If your bank fails, you may receive the amount over the limit back, but it is not guaranteed and may take some time.

Because of this, you want to be sure your money is at an FDIC member bank and your balance is less than the $250,000 threshold. If you have more than that limit, the next section details a simple way to secure it.

How Do I Protect My Money Over $250,000?

At FDIC member banks, your money is insured up to $250,000 per depositor, per issued bank, for each account ownership category, but what if you have more in your account than that and you want to be sure it is safe? Moving your money into multiple accounts at different financial institutions is one way to do this, but Panacea makes it easier.

We offer Insured Cash Sweep (ICS), which can secure balances up to $125,000,000 per tax ID, totally for free! This program divides your deposit balance between other ICS Network banks in amounts below the standard FDIC insurance maximum ($250,000). 

We handle all of this for you, and you will still only work directly with us, rather than managing your accounts at multiple different banks. Learn more about this program here. Fill out the ICS form here.

Work With A Bank You Can Trust

Still feeling worried about your money being in a secure place? Finding a bank that is committed to providing superior service and having customers’ interests at heart could calm your fears.

At Panacea, we are focused on our customers first. That’s why we protect your deposits through FDIC insurance and ICS.

If you want to move your funds to a bank you can trust and take advantage of competitive savings rates, Panacea is able to help! Find our current personal high-yield savings account rates here, and our current business savings account rate here. These rates mean you can save more while knowing your money is safe. Learn more about our personal and business  deposit accounts.

Panacea Financial is a division of Primis, Member FDIC.

  • $25 minimum opening deposit. Cannot transfer balances from existing accounts. ATM Refunds of foreign transactions will be refunded within five business days after the statement cycle ends. External wire fees refunded up to $35 per wire for a wire over $10,000.
  • APY = Annual Percentage Yield. The advertised APY is effective 2/23/2023 and subject to change thereafter. No minimum balance required to obtain the APY. The minimum to open a Panacea Savings Account is $25. Fees may reduce earnings. Offer is subject to change without notice and may be withdrawn at any time. Up to six transfers or withdrawals per statement cycle.
  • FDIC Insurance limit is $250,000, per depositor, per ownership category.

Placement of your funds through the ICS service is subject to the terms, conditions, and disclosures set forth in the agreements that you enter into with us, including the ICS Deposit Placement Agreement. Limits and customer eligibility criteria apply. Program withdrawals are limited to six per month when using the ICS savings option. ICS, Insured Cash Sweep, and Bank Safe, Bank Smart are registered service marks of Promontory Interfinancial Network, LLC.

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What is the Average Pediatrician Salary? https://panaceafinancial.com/resources/what-is-the-average-pediatrician-salary/ Mon, 27 Mar 2023 21:53:30 +0000 https://panaceafinancial.com/?p=6361 According to the U.S. Bureau of Labor Statistics, the mean annual wage for pediatricians is $198,420. According to Medscape, general pediatricians earn an average of $244,000 annually. Montana is the highest paid state in the U.S. for pediatricians with a mean annual salary of $297,280, according to the U.S. Bureau of Labor Statistics. According to …

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  • According to the U.S. Bureau of Labor Statistics, the mean annual wage for pediatricians is $198,420.
  • According to Medscape, general pediatricians earn an average of $244,000 annually.
  • Montana is the highest paid state in the U.S. for pediatricians with a mean annual salary of $297,280, according to the U.S. Bureau of Labor Statistics.

According to the Association of American Medical Colleges, there were 60,305 active pediatricians in the U.S. in 2021. 

Pediatricians have varying salaries based on specialty, location and other factors, but it is a good idea to have a general understanding of salary to help guide negotiations and create a financial plan.

What is the average pediatrician salary? 

According to the BLS, the mean annual wage for pediatricians is $198,420. 

Medscape reports that general pediatricians’ average annual earnings were $244,000 in 2022.

How much do pediatricians make per hour?

The mean annual wage for pediatricians as reported by the BLS equates to an hourly wage of $95.40.

Pediatrician salary by state: What do physicians make in each state?

Pediatricians’ salaries can vary greatly by state and territory, ranging from $91,350 in Puerto Rico to $297,280 in Montana. According to the BLS, these are the annual mean salaries for pediatricians by state:

  • Alabama – $178,470
  • Alaska – $189,750
  • Arizona – $200,350
  • Arkansas – $196,400
  • California – $198,000
  • Colorado – $231,260
  • Connecticut – $176,680
  • Delaware – $209,320
  • Florida – $179,270
  • Georgia – $184,210
  • Hawaii – $212,430
  • Idaho – $175,750
  • Illinois – N/A
  • Indiana – $204,490
  • Iowa – $253,530
  • Kansas – $154,520
  • Kentucky – $201,560
  • Louisiana – N/A
  • Maine – $227,310
  • Maryland – $196,630
  • Massachusetts – $197,800
  • Michigan – $161,680
  • Minnesota – $218,440
  • Mississippi – $259,780
  • Missouri – $140,410
  • Montana – $297,280
  • Nebraska – $130,030
  • Nevada – $199,110
  • New Hampshire – $262,770
  • New Jersey – $221,120
  • New Mexico – $222,350
  • New York – $174,650
  • North Carolina – $233,930
  • North Dakota – N/A
  • Ohio – $187,300
  • Oklahoma – $190,180
  • Oregon – $191,510
  • Pennsylvania – $169,570
  • Puerto Rico – $91,350
  • Rhode Island – $223,610
  • South Carolina – $257,550
  • South Dakota – $214,080
  • Tennessee – $186,920
  • Texas – $264,190
  • Utah – $233,620
  • Vermont – N/A
  • Virginia – $154,670
  • Washington – $230,540
  • West Virginia – $190,700
  • Wisconsin – $250,480
  • Wyoming – $238,640

Highest paying states for pediatricians

According to the BLS, these are the highest paying states for pediatricians:

  1. Montana – $297,280
  2. Texas – $264,190
  3. New Hampshire – $262,770
  4. Mississippi – $259,780
  5. South Carolina – $257,550

Physician salary by specialty: How do pediatricians’ salaries compare to other specialties?

According to Medscape, pediatricians make an average of $244,000 per year. The average salaries for other medical specialties are as follows:

  • Plastic surgery – $576,000
  • Orthopedics – $557,000
  • Cardiology – $490,000
  • Otolaryngology – $469,000
  • Urology – $461,000
  • Gastroenterology – $453,000
  • Dermatology – $438,000
  • Radiology – $437,000
  • Ophthalmology – $417,000
  • Oncology – $411,000
  • Anesthesiology – $405,000
  • General surgery – $402,000
  • Emergency medicine – $373,000
  • Critical care – $369,000
  • Pulmonary medicine – $353,000
  • Ob/Gyn – $336,000
  • Pathology – $334,000
  • Nephrology – $329,000
  • Physical medicine & rehabilitation – $322,000
  • Neurology – $301,000
  • Allergy & immunology – $298,000
  • Rheumatology – $289,000
  • Psychiatry – $287,000
  • Internal medicine – $264,000
  • Infectious diseases – $260,000
  • Diabetes & endocrinology – $257,000
  • Family medicine – $255,000
  • Public health & preventive medicine – $243,000

How do pediatricians’ bonuses compare to other bonuses?

According to data from Medscape, 57% of physicians receive an incentive bonus as part of their income. The average annual bonus for a pediatrician is $28,000, the lowest of all reported specialties.

Other specialties’ average incentive bonuses are

  • Orthopedics – $126,000
  • Ophthalmology – $100,000
  • Cardiology – $85,000
  • Gastroenterology – $74,000
  • Urology – $73,000
  • Anesthesiology – $68,000
  • Radiology – $66,000
  • Pathology – $54,000
  • Emergency medicine – $51,000
  • Ob/Gyn – $49,000
  • Physical medicine & rehabilitation – $48,000
  • General surgery – $46,000
  • Psychiatry – $33,000
  • Family medicine – $30,000
  • Internal medicine – $29,000
  • Neurology – $29,000

Are pediatricians’ salaries increasing?

According to Medscape, general pediatricians’ salaries increased by 10% in 2022, though individuals may have seen their personal income decline.

Before you go…

The salaries of medical professionals, including pediatricians, can vary greatly depending on the region and the practice. 

The sudden rise in salary that occurs when transitioning from training to practice can be difficult to adjust to. Our Build Your Team program connects you to experts in financial planning, budgeting, taxes, and more for free, so that you can feel confident in negotiating and navigating your new salary.

For more helpful information and tips, visit our Resources page or read one of our featured articles below:

Panacea Financial, a division of Primis. Member FDIC.

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What Is Liquidity & Why Is It Important For Practice Ownership? https://panaceafinancial.com/resources/what-is-liquidity/ Mon, 27 Mar 2023 21:39:25 +0000 https://panaceafinancial.com/?p=6359 Liquidity includes savings, stocks, bonds, mutual funds and any money you can take out of an account without penalty. Retirement accounts, like 401(k)s, IRAs, Roth IRAs, and home equity are not included in liquidity considerations. Liquidity is important because it allows you to have a safety net if your practice doesn’t perform well right away …

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  • Liquidity includes savings, stocks, bonds, mutual funds and any money you can take out of an account without penalty.
  • Retirement accounts, like 401(k)s, IRAs, Roth IRAs, and home equity are not included in liquidity considerations.
  • Liquidity is important because it allows you to have a safety net if your practice doesn’t perform well right away or has a couple slow months.

Opening or starting a medical, dental or veterinary practice can be a complex process. Financing that practice can add complexity, especially if you have limited knowledge about the basic requirements needed to obtain a practice loan. 

Educating yourself as you prepare for or begin the process can give you greater confidence as you search for the right lending partner. In this article, we break down what liquidity is, why it is important, and how it can affect what you can buy.

What is liquidity? 

Liquidity refers to “the efficiency or ease with which an asset or security can be converted into ready cash without affecting its market price,” according to Investopedia. 

When assessing a doctor’s liquidity for a practice loan, banks consider savings, stocks, bonds, mutual funds, and any money you can take out of an account without penalty.

What is not considered liquidity? 

Since liquidity is money that can be taken out of an account without penalty, liquidity does not include retirement accounts, like 401(k)s, IRAs, Roth IRAs. It also doesn’t include any equity you have in your home.

Why is liquidity important in practice ownership? 

Liquidity is important because it protects from the risk that the practice doesn’t perform well right away, especially when building a patient base and streamlining productivity and profitability. New practice owners will still have personal and practice bills to pay, so it is important to have cash on hand if needed.

If you only have enough savings to cover a month or two of expenses, you may put yourself and your business in a tough position, and your practice could quickly go out of business.

How does liquidity affect the ability to purchase a practice? 

When buying a practice, a lender will consider how much cash or savings the loan applicant has. The more liquidity a prospective practice owner has, the more eligible they are for a larger loan—depending on other factors as well.

How much liquidity does a doctor need before buying a practice? 

Banks typically require 10% of the practice price in liquidity. Some banks, like Panacea Financial, look at each applicant’s personal financial statement in more detail to come up with a liquidity number or requirement, based on that individual.

Tips for maximizing liquidity

Especially for young doctors just a few years out of school, it can be tough to have the significant liquidity needed to buy a practice. We see trends in doctors who struggle with having adequate liquidity. Here are some tips that may help you find the liquidity you need to purchase your practice:

  • Save your money. When preparing to buy a practice, instead of paying down student or other loans, you may want to save your money. Though your loan balance may be high, banks often prefer to see high debt and high liquidity than low debt and low liquidity. Your lending eligibility often weighs more heavily on cash flow and savings than debt load.
  • Balance your retirement savings. Many people put a lot of their excess funds into their retirement accounts, but if you plan to buy a practice, this could hurt your lending eligibility. Because retirement savings don’t factor into your liquidity, keeping more funds in savings and investment accounts may be a better option.

Finding a practice loan that works for you

Liquidity is just one aspect of how lenders assess prospective practice owners, but it is a common reason for financing challenges. If liquidity is holding you back from funding your dream of practice ownership, a lender that can understand your unique circumstances, like Panacea, may be the right partner for you.

We see each lending applicant as an individual and use their personal financial statements to determine a liquidity requirement. If you’re ready to begin the practice ownership process, we can help you start, buy or grow your practice. Start your application today!

We regularly share content that could help you on the journey to practice ownership. To learn more, visit our Resources page, or check out one of our curated articles:

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Feeling Disappointed On Match Day? What’s Next? – Match Day 2023 https://panaceafinancial.com/resources/feeling-disappointed-on-match-day-whats-next/ Fri, 17 Mar 2023 14:38:30 +0000 https://panaceafinancial.com/?p=6322 According to the NRMP 2022 Main Residency Match Results and Data, less than half of all Match Day applicants were matched with their first choice program. Almost 20% of matched applicants didn’t end up in their first choice specialty. Despite disappointment on Match Day, there are ways to overcome this and thrive in your residency …

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  • According to the NRMP 2022 Main Residency Match Results and Data, less than half of all Match Day applicants were matched with their first choice program.
  • Almost 20% of matched applicants didn’t end up in their first choice specialty. 
  • Despite disappointment on Match Day, there are ways to overcome this and thrive in your residency program!

Match Day has arrived. You are likely feeling a mix of nervousness and excitement as you prepare to learn where you will spend the next few years, but when you open the envelope, you are disappointed.

This isn’t unusual, and you are definitely not alone. Some of your peers are likely experiencing similar disappointment whether from not matching into their first choice program or not getting their ideal specialty—and some may have not matched at all.

Matching Into Your First Choice

Many Match participants don’t match into their first choice program, and some don’t match into their first choice specialty. The NRMP 2022 Main Residency Match Results and Data details how common different matching scenarios are:

Not your first choice program. In 2022, only 48.5% of MD seniors and 47.7% of DO seniors matched to their first choice program. 

Not the right specialty. 4,924 MD seniors and 2,644 DO seniors didn’t match into their first (or only) choice specialty. Out of the 39,205 positions that were filled, almost 20% were filled by applicants who did not rank the specialty first.

Didn’t match in the main Match. 6.7% of MD seniors and 8.2% of DO seniors were unmatched in 2022. If you find yourself unmatched on the first day of Match Week, it’s time to SOAP. 

Didn’t match in SOAP. If at the end of SOAP and Match Week you are still unmatched, this can feel like a setback, but there are many ways this can help you serve patients better in the future. We share tips for the year ahead here.

Overcoming Match Day Disappointment

For those who matched somewhere other than their first choice program or specialty, we know, especially in the early moments of learning this, you are likely incredibly disappointed. But we want to provide some encouragement and tips for overcoming what may seem like a setback.

Let yourself be disappointed. Since interviewing and ranking, you’ve likely been dreaming of your first-choice program and first-choice specialty. Finding out that dream won’t be a reality in the way you thought is a tough pill to swallow, so it’s okay to be sad! 

Take time to process your feelings. If you feel comfortable, we encourage you to share how you’re feeling with your close friends and family. They will listen to your frustrations and disappointment and help encourage you in what is next. Let yourself grieve a little, then prepare for the great things that are ahead.

You’re not alone. As stated before, over half of all applicants didn’t match into their first choice program and almost 20% of matched applicants didn’t match into their first choice specialty, so you aren’t alone. Many of your classmates and peers are experiencing the same unexpected disappointment.

It is GOOD that you matched! If you matched into your backup specialty, it is important to remember that you have a job and will be entering training to become a practicing physician. In 2022, 6.7% of MD seniors were unmatched and 8.2% were left unmatched. We encourage you to balance your disappointment with excitement that you are able to continue your training. 

Identify the good. Whether in a program or specialty you didn’t plan for, there is good in the situation. What opportunities or experiences will this program give to you that another might not have? If you are moving to a new city, what are you excited to explore there? If in your backup specialty, how will you be able to serve patients in ways you didn’t expect?

Have an open mind. No matter where you ended up, we encourage you to go into the program with an open mind. No one is guaranteed to love their residency program, regardless of where they placed it on their Rank Order List. After time in the program, you may find yourself loving the program or specialty. 

Resist finality. Match Day feels final, but trust us, it’s not. If you discover that you truly don’t like the program or specialty, you may be able to switch. This decision may come with challenges or extend your training, but it is important to know that you do have options if needed. Before making the decision to switch, you should know there can be caveats for this situation in your employment contracts, so be sure to read it carefully. 

Looking Ahead

Match Day and residency is just the next step in your career. Though not matching as expected can be difficult, we know there are great things ahead for you!

These tips can help you navigate the road ahead. For more Match Day and residency resources, visit our Match Day page or check out one of the following:

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What is the Average Surgeon Salary? https://panaceafinancial.com/resources/what-is-the-average-surgeon-salary/ Fri, 17 Feb 2023 16:50:59 +0000 https://panaceafinancial.com/?p=6127 According to the U.S. Bureau of Labor Statistics, the mean annual wage for surgeons is $297,800. According to Medscape, general surgeons earn an average of $402,000 annually. North Dakota is the highest paid state in the U.S. for surgeons with a mean annual salary of $359,220, according to the U.S. Bureau of Labor Statistics. According …

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  • According to the U.S. Bureau of Labor Statistics, the mean annual wage for surgeons is $297,800.
  • According to Medscape, general surgeons earn an average of $402,000 annually.
  • North Dakota is the highest paid state in the U.S. for surgeons with a mean annual salary of $359,220, according to the U.S. Bureau of Labor Statistics.

According to the Association of American Medical Colleges, there were 24,880 active general surgeons in the U.S. in 2021. That number almost triples when you factor in surgery specialties like plastic, orthopedic, vascular and more.

Surgeons have varying salaries based on specialty, location and other factors, but it is a good idea to have a general understanding of salary to help guide negotiations and create a financial plan.

There is varying data available for surgeon salaries, but in this article we will use Medscape’s general surgeon salary data and the U.S. Bureau of Labor Statistics’ “all other surgeons,” which includes all surgical specialties except orthopedic and pediatric surgeons and ophthalmologists.

What is the average surgeon salary? 

According to the BLS, the mean annual wage for “all other” surgeons is $297,800. 

Medscape reports that general surgeons’ average annual earnings were $402,000 in 2022.

How much do surgeons make per hour?

The mean annual wage for surgeons as reported by the BLS equates to an hourly wage of $143.17.

Surgeon salary by state: What do physicians make in each state?

Surgeons’ salaries can vary greatly by state and territory, ranging from $193,080 in Alabama to $359,220 in North Dakota. According to the BLS, these are the annual mean salaries for “all other” surgeons by state:

  • Alabama – $193,080
  • Alaska – $336,900
  • Arizona – $327,520
  • Arkansas – $326,440
  • California – $351,580
  • Colorado – $294,500
  • Connecticut – $242,330
  • Delaware – N/A
  • District of Columbia — $289,860
  • Florida – N/A
  • Georgia – $330,860
  • Hawaii – $302,040
  • Idaho – $320,740
  • Illinois – N/A
  • Indiana – $268,820
  • Iowa – $289,990
  • Kansas – $266,510
  • Kentucky – $332,610
  • Louisiana – $345,000
  • Maine – N/A
  • Maryland – $317,220
  • Massachusetts – $345,710
  • Michigan – $300,200
  • Minnesota – N/A
  • Mississippi – $329,820
  • Missouri – $337,390
  • Montana – $339,520
  • Nebraska – $320,570
  • Nevada – $335,250
  • New Hampshire – N/A
  • New Jersey – N/A
  • New Mexico – $339,130
  • New York – $249,450
  • North Carolina – N/A
  • North Dakota – $359,220
  • Ohio – $346,060
  • Oklahoma – $317,160
  • Oregon – $330,200
  • Pennsylvania – $268,930
  • Rhode Island – $356,680
  • South Carolina – $356,560
  • South Dakota – N/A
  • Tennessee – $273,720
  • Texas – $279,600
  • Utah – $303,360
  • Vermont – $260,210
  • Virginia – $262,210
  • Washington – $304,910 
  • West Virginia – $328,310
  • Wisconsin – N/A
  • Wyoming – N/A

Highest paying states for surgeons

According to the BLS, these are the highest paying states for “all other” surgeons:

  1. North Dakota – $359,220
  2. Rhode Island – $356,680
  3. South Carolina – $356,560
  4. California – $351,580
  5. Ohio – $346,060

Physician salary by specialty: How do surgeons’ salaries compare to other specialties?

According to Medscape, general surgeons make an average of $402,000 per year. The average salaries for other medical specialties are as follows:

  • Plastic surgery – $576,000
  • Orthopedics – $557,000
  • Cardiology – $490,000
  • Otolaryngology – $469,000
  • Urology – $461,000
  • Gastroenterology – $453,000
  • Dermatology – $438,000
  • Radiology – $437,000
  • Ophthalmology – $417,000
  • Oncology – $411,000
  • Anesthesiology – $405,000
  • Emergency medicine – $373,000
  • Critical care – $369,000
  • Pulmonary medicine – $353,000
  • Ob/Gyn – $336,000
  • Pathology – $334,000
  • Nephrology – $329,000
  • Physical medicine & rehabilitation – $322,000
  • Neurology – $301,000
  • Allergy & immunology – $298,000
  • Rheumatology – $289,000
  • Psychiatry – $287,000
  • Internal medicine – $264,000
  • Infectious diseases – $260,000
  • Diabetes & endocrinology – $257,000
  • Family medicine – $255,000
  • Pediatrics – $244,000
  • Public health & preventive medicine – $243,000

How do surgeons’ bonuses compare to other bonuses?

According to data from Medscape, 57% of physicians receive an incentive bonus as part of their income. The average annual bonus for a general surgeon is $46,000.

Other specialties’ average incentive bonuses are

  • Orthopedics – $126,000
  • Ophthalmology – $100,000
  • Cardiology – $85,000
  • Gastroenterology – $74,000
  • Urology – $73,000
  • Anesthesiology – $68,000
  • Radiology – $66,000
  • Pathology – $54,000
  • Emergency medicine – $51,000
  • Ob/Gyn – $49,000
  • Physical medicine & rehabilitation – $48,000
  • Psychiatry – $33,000
  • Family medicine – $30,000
  • Internal medicine – $29,000
  • Neurology – $29,000
  • Pediatrics – $28,000

Are surgeons’ salaries increasing?

According to Medscape, general surgeons’ salaries increased by 8% in 2022, though individuals may have seen their personal income decline.

Before you go…

The salaries of medical professionals, including surgeons, can vary greatly depending on the region and the practice. 

The sudden rise in salary that occurs when transitioning from training to practice can be difficult to adjust to. Our Build Your Team program connects you to experts in financial planning, budgeting, taxes, and more for free, so that you can feel confident in negotiating and navigating your new salary.

For more helpful information and tips, visit our Resources page or read one of our featured articles below:

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