Reflecting the growth of large group practices, employed physicians are inching closer to being the majority.
Their ranks swelled to 39% in 1995 from 36% a year earlier. Physicians who own their own practices dropped to 55% from 58%.
The remaining 6% consider themselves independent contractors, such as temporary workers.
Employed physicians generally earn less than those who are self-employed. The pay gap between the two groups had been narrowing for several years, but 1995 saw a halt to that trend, the American Medical Association said in its annual report on physician socioeconomic issues.
Self-employed physicians enjoyed a 13.1% increase in median income to $199,000. Employed physicians fell further behind, receiving a 4.6% increase to $136,000.
Part of the income differential between the two groups can be attributed to return on entrepreneurship, investment and risk taking, the AMA said. Self-employed physicians also tend to be older and more experienced and work longer hours.