Does anybody have a source of the average physician salary by decade going back as far into history as possible? It would be interesting to see just how good or bad we have it now.
...honestly, it really wouldn't be very interesting for you to know. It would be very depressing. Just pretend you're making more than anyone ever did and feel happy
It would be very depressing. Just pretend you're making more than anyone ever did and feel happy
Actually I think everyone would be surprised to know that doctors didn't really make a lot of money until the mid 80s. Before that clinical work was considered more of a public service than a business transaction.
I suspect this conventional wisdom of SDN to be more myth than reality, which is why I asked the question.
Thank you so much for this incredibly in-depth response. I really appreciate the effort. My primary motivation for asking the question is that I just started reading Time to Heal: American Medical Education from the Turn of the Century to the Era of Managed Care by Dr. Kenneth M. Ludmerer. The beginning the book places a large emphasis on how after the Flexner Report medicine transitioned to being viewed as a public good with doctors as public servants, but this model has changed in recent decades.
The conventional wisdom on SDN, at least from my perception, is that medicine is indeed not as heavily viewed as a public service, and that doctors are certainly not viewed as public servants. I think salary is a relatively good benchmark (though certainly not perfect) to correlate the extent to which members of certain professions are considered public servants.
I have read some non-source backed articles that discuss how New Deal reforms that increased the amount of work-place health insurance and the implementation of Medicare and Medicaid caused a significant increase in physician income due in part to dramatically increasing the percentage of patients who paid for services as well as normalizing the price of services. This to flies in the face of much of the political talk and conventional wisdom I hear on SDN about the effect tax-payer supported medical insurance. However, I am eagerly looking for some more legitimate sources to support or refute these assertion. It will take me a bit of time to sort through all of the information you provided in your post.
I suspect this conventional wisdom of SDN to be more myth than reality, which is why I asked the question
The conventional wisdom on SDN, at least from my perception, is that medicine is indeed not as heavily viewed as a public service, and that doctors are certainly not viewed as public servants. I think salary is a relatively good benchmark (though certainly not perfect) to correlate the extent to which members of certain professions are considered public servants.
I have read some non-source backed articles that discuss how New Deal reforms that increased the amount of work-place health insurance and the implementation of Medicare and Medicaid caused a significant increase in physician income due in part to dramatically increasing the percentage of patients who paid for services as well as normalizing the price of services. This to flies in the face of much of the political talk and conventional wisdom I hear on SDN about the effect tax-payer supported medical insurance. However, I am eagerly looking for some more legitimate sources to support or refute these assertion. It will take me a bit of time to sort through all of the information you provided in your post.
Given that medicine is going through a time of intense change - socially, politically, scientifically, professionally, financially, etc
I believe it is important for current and future health care workers to know their history. It is far more dangerous, in my opinion, to assume things about the past as the past is, generally, always surprising.
How many other public servant jobs (or people in any career for that matter) require a college degree plus 7-10 years of additional training after that with an average debt of over 200k starting the career? If physicians made as much as most public servants (under 50k/year) you might as well call them slaves.
As for the tax-payer supported medical insurance thing, the U.S. has had a steady rate of uninsured (non-elderly population) of around 17% for about 20 years. Currently it's down around 13%. Even if that uninsured rate dropped to 0, there would still be a significant percentage of the population that wouldn't utilize medical care until an emergency when treatment would be expensive enough to negate any extra profits that would be seen from the extra patient load. This can already be seen as the EM department of many hospitals is typically the unit that hemorrhages money. I believe part of the reason there was such a boom back around the advent of insurance was that people were suddenly able to afford basic treatments that they previously couldn't get and which were relatively inexpensive. People who couldn't afford to see a doc for 15 or 20 years started going in for regular yearly visits and could afford basic prescriptions. I don't know the numbers, but I'd imagine that adding millions to a patient population who require relatively inexpensive treatment would be the cause of the mass increase in profit. Add to that the fact that the landscape of the healthcare world isn't even remotely the same as it was 75 years ago and how much more ridiculously expensive treatment is, it is pretty easy to see why some would be financially concerned.
Attempts will be made to enslave doctors by tying medical licensure to acceptance of government insurance. The government will maintain as much control as possible over the system. Why? Because universal healthcare will probably not work well in a country as large and diverse as the US.
The future is clear. Fully socialized medicine will come to America. The top 10% of the population by wealth will have no interest in inefficient, long-wait, British-style government medical establishments. A far larger proportion than 10% of doctors will move into the direct-pay top tier "boutique" medicine. Entire specialties will be unavailable to people who can't pay cash.
Reasonable people should recognize this outcome as the only logical possibility. Harry Reid has directly stated that the point of ACA was to crush the insurance industry to make way for single payer. Doctors will be paid far less than market value by this single payer, so I expect many to exit the system. This will greatly exacerbate the physician shortage on a scale never before seen. Attempts will be made to enslave doctors by tying medical licensure to acceptance of government insurance. The government will maintain as much control as possible over the system. Why? Because universal healthcare will probably not work well in a country as large and diverse as the US.
The future is clear. Fully socialized medicine will come to America. The top 10% of the population by wealth will have no interest in inefficient, long-wait, British-style government medical establishments. A far larger proportion than 10% of doctors will move into the direct-pay top tier "boutique" medicine. Entire specialties will be unavailable to people who can't pay cash.
Reasonable people should recognize this outcome as the only logical possibility. Harry Reid has directly stated that the point of ACA was to crush the insurance industry to make way for single payer. Doctors will be paid far less than market value by this single payer, so I expect many to exit the system. This will greatly exacerbate the physician shortage on a scale never before seen. Attempts will be made to enslave doctors by tying medical licensure to acceptance of government insurance. The government will maintain as much control as possible over the system. Why? Because universal healthcare will probably not work well in a country as large and diverse as the US.
Yah universal health care will probably not be a reality in this country for the foreseeable future. The future is certainly not clear. Congress (on both sides) understands that the economic infrastructure is not there (How do we pay for it?) the social infrastructure is not there (Who will it serve and can they access it?) and the professional infrastructure is not there (Who is actually going to do this?) and, most importantly, the political infrastructure is not there (Who is going to pay for this?). The USA will not go the way of the NHS. However, if state government changes significantly in the future I can see something like state-wide NHS-like counterparts working in tandem with private insurers as private insurers move towards catering to a different population (read: the wealthy) and governments move to cover everyone else. I do not foresee a national NHS-like system coming to fruition anywhere in the near future. I agree that some form of incentive will probably be put in place to discourage private practice or non-hospital based care. The optimist in me hopes that future physicians foresee this and the importance of being more organizationally educated and get to the business of ensuring that these hospital systems are run by physicians.
Everything else you said is overly dramatic and is the same sort of non-sense that has been milling around the medical profession for decades.
Healthcare is going to become more public, more centralized and more bureaucratic. I do not believe there is a way to avoid this. The best hope for physicians is for them to realize that "the system" is only made up of the people who work in the healthcare field, of which they are a part and they need to start playing a bigger part in the management of that "system" if they want their interests to be accounted for.
The question is no longer "will socialized medicine work?" the question is "how can we make it work?" otherwise we will be unable to do one of two things: 1) provide quality care for the entire population or 2) sustain the current medical economic structure. As the US' economic hegemony begins to be challenged by India, China, Great Britain on the global marketplace our underlying socio-political structure - of which healthcare is a massive cog - needs to be solving problems those countries have already solved.
Yah universal health care will probably not be a reality in this country for the foreseeable future.....Healthcare is going to become more public, more centralized and more bureaucratic....The question is no longer "will socialized medicine work?" the question is "how can we make it work?"
I agree that the intense education and competition to become a physician warrants a higher salary than the average public servant. However, I cringe every time somebody brings this up because it is a straw man argument to assert that anybody suggesting that income might be adjusted is claiming that it should be reduced by 75%.
The assertion that the implementation of Medicare greatly increased physician income (at the time) is that such a large percentage of medical care was offered for whatever a person could afford (which was sometimes nothing) (Hear is the unsourced article that I previously mentioned http://www.kevinmd.com/blog/2012/09/doctors-complain-history-physician-income.html). You are absolutely correct that the landscape of medicine has changed dramatically over the past decades in terms of higher costs for many more advanced treatments. It is certainly a possibility that the reforms that implemented public insurance in the 1960's that led to such an increase in physician salary of the day now have a negative effect. I do not know the answer to this. I also do not know how possible it is to discover the truthful answer with how chaotic our health care system is today. There is so much variation in cost for medical procedures that it is hard to assess the true value of care. http://www.nytimes.com/2013/05/08/business/hospital-billing-varies-wildly-us-data-shows.html and http://www.washingtonpost.com/blogs/wonkblog/wp/2013/05/08/one-hospital-charges-8000-another-38000/
Yah universal health care will probably not be a reality in this country for the foreseeable future. The future is certainly not clear. Congress (on both sides) understands that the economic infrastructure is not there (How do we pay for it?) the social infrastructure is not there (Who will it serve and can they access it?) and the professional infrastructure is not there (Who is actually going to do this?) and, most importantly, the political infrastructure is not there (Who is going to pay for this?). The USA will not go the way of the NHS. However, if state government changes significantly in the future I can see something like state-wide NHS-like counterparts working in tandem with private insurers as private insurers move towards catering to a different population (read: the wealthy) and governments move to cover everyone else. I do not foresee a national NHS-like system coming to fruition anywhere in the near future. I agree that some form of incentive will probably be put in place to discourage private practice or non-hospital based care. The optimist in me hopes that future physicians foresee this and the importance of being more organizationally educated and get to the business of ensuring that these hospital systems are run by physicians.
Everything else you said is overly dramatic and is the same sort of non-sense that has been milling around the medical profession for decades.
Healthcare is going to become more public, more centralized and more bureaucratic. I do not believe there is a way to avoid this. The best hope for physicians is for them to realize that "the system" is only made up of the people who work in the healthcare field, of which they are a part and they need to start playing a bigger part in the management of that "system" if they want their interests to be accounted for.
The question is no longer "will socialized medicine work?" the question is "how can we make it work?" otherwise we will be unable to do one of two things: 1) provide quality care for the entire population or 2) sustain the current medical economic structure. As the US' economic hegemony begins to be challenged by India, China, Great Britain on the global marketplace our underlying socio-political structure - of which healthcare is a massive cog - needs to be solving problems those countries have already solved. We're two steps ahead already by providing the best care and biomedical research on the planet (if you can pay for it and know where to look...) so it would be a fool's game to underplay our hand and act like we're old men on a porch with our shotguns fighting a losing fight.
What's overly dramatic?
The government already determines to whom one must provide loans, residential patterns, and whom one must serve.
To force doctors to accept a minimum number or percentage of Medicare/Medicaid patients would actually be easy to accomplish.
Which problems are those?
These contradictory statements are confusing me deeply. As you have pointed out, it is not possible to make universal healthcare work and continue to provide high quality, cutting edge care. This is an economic reality as you have already conceded.
To the OP, the reason why past physician compensation matters (and you care at all about it) is to understand future developments and possibilities. That is the function of studying history.
I wasn't trying to say that it should or would be reduced by 75%. I was just saying that using salary as a measurement of 'public servitude' is not accurate for physicians because they're training and cost to become certified/trained is vastly different from almost any other profession in which one would be considered a public servant. That's not a straw man, that's just the reality of our system. As for finding the truth to the system, that's something that takes years, even decades, and people make their careers out of trying to really understand it. I'm not going to pretend that I do or ever will truly understand it as a whole, and I'd venture to say 99% of the people who claim they do are full of s***.
We cannot provide high quality care for the entire population. We simply don't have the resources to match the demand. Add to that the large percentage of the population that is completely illiterate and ignorant when it comes to their own health and I think it is an impossible undertaking (at least for the moment). I think the question is still will socialized medicine work here because as you said we don't have the financial infrastructure to move into a single payer system. I think most people in healthcare agree that it's moving in a more centralized direction, but how far and how fast it will happen are still very much up in the air.
Personally if we end up moving into a universal care situation I hope we use a model similar to what Australia has, which is basically a 2-tier system. Every citizen qualifies for Medicare (equivalent to our Medicaid) and may receive basic treatments at public hospitals or by publicly associated physicians. It provides everyone with basic health needs and with major surgeries/treatments, but has the same issues as most other universal health systems (poorer quality due to limited resources, longer waits, etc.). The second tier consists of private insurance which is somewhat similar to what we already have. It costs more and some people don't get it because of cost (which is still typically much cheaper than here), but those who are willing to pay have faster access to what is usually higher quality care.
I think the other problem that most countries don't have is the cost of prescription medications and treatment. While I understand big pharma's needs for high income in order to develop new products, I can think of very, very few reasons why any single pill should cost a person, whether they are insured or not, hundreds or even thousands of dollars unless it actually costs that much to produce it. If we really want to make healthcare more cost efficient, then the costs from big pharma need to be brought into check somehow, but that's a whole 'nother argument with even more issues.
We cannot provide high quality care for the entire population. We simply don't have the resources to match the demand. Add to that the large percentage of the population that is completely illiterate and ignorant when it comes to their own health and I think it is an impossible undertaking (at least for the moment). I think the question is still will socialized medicine work here because as you said we don't have the financial infrastructure to move into a single payer system. I think most people in healthcare agree that it's moving in a more centralized direction, but how far and how fast it will happen are still very much up in the air.
Personally if we end up moving into a universal care situation I hope we use a model similar to what Australia has, which is basically a 2-tier system. Every citizen qualifies for Medicare (equivalent to our Medicaid) and may receive basic treatments at public hospitals or by publicly associated physicians. It provides everyone with basic health needs and with major surgeries/treatments, but has the same issues as most other universal health systems (poorer quality due to limited resources, longer waits, etc.). The second tier consists of private insurance which is somewhat similar to what we already have. It costs more and some people don't get it because of cost (which is still typically much cheaper than here), but those who are willing to pay have faster access to what is usually higher quality care.
I think the other problem that most countries don't have is the cost of prescription medications and treatment. While I understand big pharma's needs for high income in order to develop new products, I can think of very, very few reasons why any single pill should cost a person, whether they are insured or not, hundreds or even thousands of dollars unless it actually costs that much to produce it. If we really want to make healthcare more cost efficient, then the costs from big pharma need to be brought into check somehow, but that's a whole 'nother argument with even more issues.
I wasn't trying to say that it should or would be reduced by 75%. I was just saying that using salary as a measurement of 'public servitude' is not accurate for physicians because they're training and cost to become certified/trained is vastly different from almost any other profession in which one would be considered a public servant. That's not a straw man, that's just the reality of our system.
Agree with all of these points.
The public needs to show that they desire physicians to financially behave like public servants by providing the financial means to train physicians accordingly.
To the OP, the reason why past physician compensation matters (and you care at all about it) is to understand future developments and possibilities. That is the function of studying history.
These contradictory statements are confusing me deeply. As you have pointed out, it is not possible to make universal healthcare work and continue to provide high quality, cutting edge care. This is an economic reality as you have already conceded.
Are you arguing that physicians should be viewed as public servants? I and many other future physicians would object deeply to being "public servants." I want to serve my patients, not the general "public."
I think we are talking past each other on this one. I am saying that the increase in physician income over the decades as a percentage of average income correlates (in my opinion) to physicians no longer being viewed as public servants. I am not talking about the cause of this increase (I think the cost of medical school is a big reason that needs fixing), but only stating that this increase in earned income has occurred. I do not at all view this as entirely the fault of physicians. I think that the decrease in public funds or regulations to ensure students are provided with affordable medical training is a large contributing factor to the increase physician pay because there is more of an incentive for physicians maximize profits and get out of debt. Being viewed as a public servant is a two way relationship. The public needs to show that they desire physicians to financially behave like public servants by providing the financial means to train physicians accordingly.
I believe Lucca is distinguishing between universal healthcare (practical and hopefully a positive progression) and a single payer healthcare system (not practical and a bad idea). I could be wrong with this interpretation.
I think the raise in salary has less to do with physicians no longer being seen as public servants and more to do with the fact that healthcare is significantly privatized while demand for physicians and treatments has continued to grow. Those factors together allow prices to be set as high as demand will allow, and there will always be a great demand because maintaining the health of individuals will always be a huge priority to people.
Are you arguing that physicians should be viewed as public servants? I and many other future physicians would object deeply to being "public servants." I want to serve my patients, not the general "public."
I think the raise in salary has less to do with physicians no longer being seen as public servants and more to do with the fact that healthcare is significantly privatized while demand for physicians and treatments has continued to grow. Those factors together allow prices to be set as high as demand will allow, and there will always be a great demand because maintaining the health of individuals will always be a huge priority to people.
The cost of healthcare is high because it is not privatized enough. Artificial price controls inflate costs. Incredible heaps of nonsensical regulation increases costs. Excessive liability increases costs. Remove regulations and you will see the price fall. Stop catering to special interests like big pharma and big hospitals and watch prices fall. Healthcare should be a nearly perfectly competitive market.
I guess I am unfamiliar with other systems that use universal healthcare without providing each citizen a government sponsored insurance plan (from tax credits, subsidies, or a govt run program). Can you explain how this would work?
This comment is irrelevant to the proposed question and the discussion at hand. This thread is for discussion about the history of physician pay, not grandiose predictions about the future of medicine. Thanks.