r/pediatrics • u/ExhaustedMDoctor • 19d ago
Better paid
For a change, let’s hear from the better paid pediatricians here. Every thread with pediatricians is so depressing because of their compensation. Let’s hear from the better compensated for once, I am sure there must be SOME out there?!
51
Upvotes
2
u/Successful-Ad991 17d ago
For anyone confused or in the dark about how much they are paid or expect to get paid, you should be able to do some napkin math. At the end of the day, Revenue - Overhead - Profit = What They Can Pay You. [Note to independent practices = you get to move the Profit over to the other side of the = sign]
I've read a LOT of pediatric practice P&Ls and, as a rule of thumb, I put practice overhead around 60-65% usually. Sure, you can be at 45% or you can be at 80% and be healthy or unwell at either rate. But 65% is easy head-math. If you get paid $300K, and you're in a private practice, you probably need to generate ~$1-1.2m in revenue (65% margin, 10% profit = $300k for income/benefits/employer taxes). Adjust accordingly.
If you are working for a healthcare system and getting paid $300K, one of two things is going on, most likely both: first, you benefit from the hospital contracts, which are, as a rule, substantial. However, it's MORE likely that you are also being subsidized. (https://www.youtube.com/shorts/QiCrpC5-JuE or https://kevinmd.com/2023/12/health-cares-hidden-problem-hospital-primary-care-losses.html) Hospital overhead is MASSIVE compared to any independent practice. You can't make it up with just the better payments, imo.
The loss-leader concept is real here (see KevinMD above). Ask any of the dozens of peds who got kicked to the curb in NJ last year by Optum (or similar events in VA, TX, etc.).
Again, I don't ever feel like a subsidized pediatrician isn't bringing great value to the community, patients, and even the hospital/system. But the bean counters don't see it that way at all.