Are Doctors in The U.S. Overpaid for What They Do?

 Are Doctors in The U.S. Overpaid for What They Do?

People recognize that doctors, or physicians, are among the highest-paid careers in the United States. Josh Katzowitz explores the average annual income of primary care physicians, around $281,000, and specialists, like surgeons, earning about $398,000. However, different types of doctors may influence people’s opinions; people may think that one type is overpaid, but another type is not. Many people forget that doctors are not always medical professionals; people naturally think of doctors as physicians and other medical specialists, like surgeons, so often that they forget a doctor is a title derived from a doctorate’s degree. Someone can be a doctor in philosophy, and that is not a medical professional. However, medical physicians are the main focus in this article, since they are most recognized as doctors. Doctors having high wages creates the question, are they overpaid? This debate has existed for some time, and it makes sense because of how much their income is. Though, since there are different types of doctors, it can be difficult to tell if they are overpaid, because some doctors take on less stress and responsibility than others. Some doctors having less responsibility, but are paid more, makes it seem they are overpaid.  However, doctors in the U.S. are generally paid way more than in other countries. With such a divide, it can seem suspicious; people may think doctors are overpaid. However, others could argue that the tuition for education justifies the reason for such a high salary. When that comparison is made, doctors in the U.S. with higher incomes can make people believe they are overpaid. 

Perspective #1: Yes, They Are Overpaid

Dean Baker, co-director of the Center of Economic and Policy Research, argues in his article, “The Problem of Doctors’ Salaries,” that doctors are paid more in the United States. He explains that physicians in the U.S. are paid “twice as much on average” compared to “other wealthy countries.” (Baker, 2017). Baker explains more from an economist’s perspective. He reveals that the country pays $100 billion a year just for their salaries. Since there are over 900,000 doctors being paid around $250,000 annually. He acknowledges why people believe that doctors should be well compensated for the work that they do. However, he concludes that people do not fully know the difference between how much doctors are paid in the United States and other strong countries, like the United Kingdom. Doctors in other countries have the same responsibilities as doctors in the U.S., so why do doctors in the U.S. get higher wages? Baker explores two reasons why U.S. doctors get paid more. First, U.S. doctors are paid more in every medical practice category. Second, around two-thirds of physicians are specialists. With the United States containing that many specialists, the statistics for average pay for doctors would rise. Baker claims that Medicare’s lack of control over specialization makes it more likely for teaching hospitals to train neurology and cardiology. This leaves a lack in family practitioners and a rise in average pay for doctors. Another point that Baker pursues is that doctors’ income can be reduced by other “lower-paid health professionals” taking on some of the duties doctors usually do. He mentions how many states allow nurse practitioners to prescribe medicine without a doctor, and there have been no negative results for the patients. So, it is shown that the responsibilities of doctors can be transferred to other health professionals, reducing the duties and pay for doctors. Baker wants to reduce their pay to reduce the high costs of other medical equipment and medicine. This is also to reduce the full control of medicine by the United States. He believes that the high costs causes a “cartel”-like system, where U.S. doctors can legally limit competition, and get “patients to buy services that they don’t really need.” (Baker, 2017).

Perspective #2: No, They are Not Overpaid 

Eric Truumees, an orthopedic spine surgeon and professor of orthopedics at the Dell Medical School at the University of Texas, defends doctors’ income in his article, “Are We Paid Too Much?”. Truumees briefly says that “[t]he articles almost never mention the impact of education costs, debt service, and income on physician recruitment and retention.” (Truumees, 2019). The price for becoming a doctor can range from hundreds of thousands to millions, just for school. Doctors would need a high income to overcome the debt they accumulated through their education. For all doctors, their knowledge requires a six-year program. Truumees explains that the U.S. has longer medical training for doctors and in post-graduate programs than other countries. Also, other countries have fewer hours for trainees to work; the U.S. restricts 80-hour work weeks, while trainees in Denmark, Sweden, and Germany have an average of 37 hours a week. Truumees references Dean Baker’s argument in his article, how other health professionals could do the same work as doctors but are paid less. However, part of the doctor’s pay includes being responsible for nurse practitioners and assistants. This means it is likely that many of the actions of the other health professionals are the decisions of the doctor. He also mentions that the role of the nurses and other providers has “poorly defined” roles, leading to lower pay from not having an exact responsibility. When doctors need to supervise multiple nurses, it makes sense for their pay to rise, because it gives the doctors responsibility for the nurses’ actions. 

In comparison to doctors in the U.S. earning much more than those in other countries, other professions are also paid more in the United States. For example, “One site listed the average U.S. lawyer salary as $202,326, whereas attorneys in England earn an average $90,052.” (Truumees, 2019).  This means that it is not the doctor being overpaid, but that it is normal to have a salary disparity in careers between countries.

Similarities and Differences

Both sides of the perspectives had compared the salaries of doctors in the U.S. to those of doctors in other countries. It makes sense to compare wages, because wages vary depending on different factors within the countries. Both arguments mention the idea for nurse practitioners and other health professionals to take on some duties of doctors. However, the reason Truumees made the point was to deflect Baker’s argument. Baker mentioned it as an example of how it is possible to change the tasks of medical workers to reduce their pay. Truumees does not deny that nurses can take on tasks of a doctor, but argues that their actions are within the doctor’s responsibility. Baker looks at this situation as a wide problem that all types of doctors in the U.S. are paid more than other countries. He sees the difference as a problem that needs to be addressed for a healthy economy, and how doctors’ high income creates the high cost in healthcare.

Truumees references Baker directly, “In a now infamous 2017 Politico piece, Dean Baker cited the lower pay of nurse practitioners and their similar outcomes to doctors.” (Truumees, 2019). Both mention the education or training doctors go through. However, Baker also did not explain the length of the programs, while Truumees does. Baker mentions that the teaching hospitals are more inclined to train someone in neurology or cardiology. He also mentions how the Accreditation Council for Graduate Medical Education controls medical school slots. Truumees explains that in many countries, doctors start their education program right after school, lasting six years. Then, having specialty training after medical school, but he does not mention how long. He also does not mention that medical school slots are under control.

Strengths and Weaknesses

Baker provides a good argument, explaining how doctors’ income in the U.S. is double that of doctors in other strong countries. It does not make sense why there is a difference in salary between two powerful countries. His argument also shows why the doctors in the U.S. are paid so differently. Another strong point he mentioned is how the country pays up to $100 billion for doctors. Upon learning how much the country spends, it helps the audience feel that the pay for doctors is too much. One major weakness of Baker’s argument is that his main argument revolves around the reference to doctors’ salaries in other countries. He does offer that other health professionals can take on some duties of doctors, which is a strong point. If nurses are paid less and have similar tasks as doctors, why do doctors get paid more? It shows that doctors do not need to be paid so much. However, it was displayed as a solution to the overpayment of doctors; he does not use it as a reason why doctors are overpaid. 

It seems that Baker’s argument lacked in explaining the evidence of the disparity in doctors’ pay, but exceeded in explaining why there is the difference and the solutions. Truumess provides a good defense for doctors. His point that doctors in other countries work fewer hours a week but with higher pay is strong, because if someone were to work less, it is expected that they would be paid less. Another strong point is that doctors oversee other health professionals and nurses, and that the nurses have less defined roles. It gives more responsibility to the doctor, making it expected that pay will be higher. This is a good defense to Baker’s point on nurses being able to do some procedures that doctors do.

Also, Baker’s perspective is from an economist, and Truumees’s is from a doctor’s perspective. Seeing the problem as an economist, he has more experience with finance in the nation, if not the world. Truumess has the experience of being a doctor. Truumees does not see doctors’ salaries affecting the increasing health costs. He addresses all the negative recognition on doctors’ salaries, defending against the arguments that doctors are overpaid, and tries to counter the opposing points. 

Weaknesses, however, in Truumess’ argument are noticeable. What seems to be a strong point, that doctors in other countries work fewer hours, is not supported by much evidence. He does not explore why doctors in other countries still have an annual salary less than that in the United States, when they should have a similar annual income if the doctors in other countries also get higher pay. Another weakness is that he lacks an in-depth explanation of the percentiles of salaries. One of his biggest weaknesses is that the information does not match up correctly; evidence on how orthopedic surgeons are not the best paid, because many different sources say otherwise. Also, Truumees mentions the median, not the average, which can reveal more about doctors’ pay in the wider population of doctors. 

Conclusion

Truumees explains that “It’s all relative.” Doctors are overpaid, and at the same time, not overpaid. Which at first does not make sense. However, once there is a comparison to the income of doctors, one comparison can reveal that doctors are overpaid, and a different comparison can reveal that doctors are underpaid. I strongly agree with Truumees’ comment. I think that the comparisons of doctors’ wages makes it seem one way or the other, but they are paid a reasonable amount. Yes, the comparison of doctors getting paid more in the U.S. is an example that they are overpaid. However, comparing the pay of other careers between other countries shows that the U.S. also pays those careers more than the other countries. Doctors may be paid more in the U.S., but all workers are paid more in the U.S.

    

Works Cited

Baker, Dean. “The Problem of Doctors’ Salaries.” The Agenda, 25 Oct. 2017, www.politico.com/agenda/story/2017/10/25/doctors-salaries-pay-disparities-000557/.

Katzowitz, Josh. “How Much Do Doctors Make? [Salary by Specialty 2022] | White Coat Investor.” The White Coat Investor - Investing & Personal Finance for Doctors, 2 Feb. 2022, www.whitecoatinvestor.com/how-much-do-doctors-make/.

Truumees, Eric. “Are We Paid Too Much?” Www.aaos.org, American Academy of Orthopedic Surgeons, 1 Sept. 2019, www.aaos.org/aaosnow/2019/sep/commentary/commentary01/.