An item in Outliers (March 15, p. 64) discussed Ernst & Young's 1998 Physicians Benchmarking Survey. The survey said that physicians in part-time management roles boost their total pay, but when doctors become full-time managers, the loss of clinical income decreases their compensation. Ernst & Young was quoted as saying that physicians must be able to maintain or increase their earnings in managerial roles.
Our experience with recruiting physicians to executive positions and our annual compensation surveys tell us that physician executives assume management and leadership roles for many reasons, the most important being their interest in affecting healthcare delivery in their communities. They see that as clinicians they can affect the care of perhaps 3,000 patients but as executives they can influence the care of as many as 300,000 people.
Candidates who tell me they want to become physician executives because they want to make more money are not candidates our clients want to hire. Physician executives should be paid fairly and according to their value in the marketplace. Smart organizations provide the opportunity for their chief medical officers to earn an attractive compensation package.
Physician Executive Management Center