Private healthcare is often seen as a lucrative career path, but not all specialties are created equal when it comes to compensation.
For private practice owners and healthcare entrepreneurs, understanding industry compensation trends is important for business planning and financial growth.
If you’re running a private practice or considering opening one or expanding, knowing which fields earn less can help you make informed decisions about staffing, resource allocation, and long-term sustainability.
Let’s explore the lowest-paying fields in private practice, examine why their earnings are lower, and discuss how these trends impact healthcare professionals.
Lowest-Paying Fields in Private Practice
It’s no secret that not all healthcare specialties offer top-tier salaries.
According to Medscape’s 2024 Physician Compensation Report and Doximity’s 2023 Physician Compensation Report, pediatric and primary care specialties consistently rank among the lowest-paying fields.
Here’s an overview of the 5 lowest-paid specialties, with average annual compensations:
- Pediatric Endocrinology: $218,266
- Pediatric Infectious Disease: $221,126
- Pediatric Rheumatology: $226,186
- Pediatric Hematology & Oncology: $237,005
- Pediatric Nephrology: $238,208
While primary care specialties such as family medicine and general pediatrics frequently appear on these lists, it’s clear that pediatric-focused specialties dominate the bottom tier of earnings. Why is this the case? To understand, we need to take a closer look.
Why Pediatrics and Related Fields Have Lower Compensation
High Demand, Low Supply
Pediatrics is a highly fulfilling field that focuses on improving children’s quality of life. However, it often faces lower reimbursement rates compared to other specialties. Why? Many pediatric services revolve around preventive care, check-ups, and vaccinations, which typically do not command high revenue streams.
Reimbursement Challenges
A significant portion of pediatric care is funded through Medicaid, which generally offers lower reimbursement rates than private insurance. This reimbursement gap directly impacts overall revenue for pediatric practices, resulting in smaller compensation packages for providers.
Limited Procedures
Procedural specialties tend to earn more because surgeries and other complex treatments come with higher price tags. Pediatric-focused fields, on the other hand, often rely on consultations, treatments for chronic conditions, and preventive care, which are reimbursed at a lower rate.
Workforce Oversupply
Certain pediatric subspecialties (like general pediatrics) see higher numbers of professionals entering the field, creating greater competition for available roles and reducing the potential for salary growth in private practice settings.
Other Lower Paid Specialties:
Other specialties that tend to have lower salaries include diabetes and endocrinology ($276,548), medical genetics ($244,107), preventive medicine ($275,068), or infectious disease ($288,607).
While these specialties may not offer the highest salaries, they provide opportunities to make a meaningful impact in patient care and public health. It’s important to consider your passion for these specialties and explore creative ways to enhance your income through additional services or collaborations, ensuring financial stability while pursuing your medical calling.
The Impact on Private Practice Owners
If you’re a private practice owner or operator in these lower-paying fields, the financial realities can be challenging but not insurmountable.
Here’s how understanding these trends can help you adapt:
Financial Planning Is Key
Carefully analyzing revenue streams and creating solid financial plans is crucial. Diversifying services, such as offering specialty testing or collaborating with local schools, can help boost income.
Leverage Group Models
Joining or forming group practices allows you to pool resources, negotiate better reimbursement rates, and share operational costs. This can make running a private practice in a low-paying field more sustainable.
Enhance Patient Volume-Income Ratio
Strengthen your practice’s marketing efforts to attract more patients and make up for lower earnings per visit. Social media, local events, and referral programs can all help expand your patient base.
Shaping the Future of Healthcare Compensation
Although the current compensation landscape presents challenges, there’s hope for change. Continued advocacy for fairer reimbursement policies, innovation in care delivery, and smarter business strategies can help improve outcomes for private practice owners.
Technology, too, holds promise—AI-driven tools and telemedicine can reduce operational costs and improve patient access, without reducing the quality of care.
Conclusion
In conclusion, the field of pediatrics often faces unique challenges in terms of compensation, with lower reimbursement rates compared to other specialties. However, there are practical strategies that pediatric private practice owners can implement to navigate these challenges and build a sustainable practice.
Leveraging group models and focusing on enhancing patient volume-income ratio through effective marketing efforts can help boost income and make your practice more resilient. It’s essential to continue advocating for fairer reimbursement policies and exploring innovative solutions in care delivery.
Remember, as a private practice owner in pediatrics, you play a crucial role in shaping the future of healthcare. By staying informed, being adaptable, and finding ways to thrive despite the challenges, you can make a positive impact on the lives of your patients while achieving professional and financial fulfillment.
