How are residency salaries determined?

[Ruban]

Can anyone explain how residency salaries are determined? It seems totally random, and I haven't noticed any cost of living adjustments. Yet I understand they are somehow set by the AAMC or some other organization.

Can anyone shed some light on this?

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[fistulitis]

Basically, the federal government (through Medicare or Medicaid or some such thing) provides somewhere in the neighborhood of $120,000 to residency programs per resident per year. Obviously, most of the money goes towards "education" - paying staff physicians, administrators, malpractice insurance, etc. Traditionally, somewhere around $40,000+ (depending on PGY year) goes to the resident as salary.

If an uncompetitive program really wanted to attract better residents, it could offer salaries of $60,000 or $80,000 or whatever...

 

[Ruban]

Hmm interesting. I guess a lot of it has to do with how desirable a residency is. UCSF pays like 40K for interns, whereas other schools with a cost of living 1/5th as much pay considerably more. Boo

 

[docB]

The ACGME requires that programs adhere to a strict process for determining resident salaries however they do allow some methodological leeway. I know that at my program they were determined by using a wheel of fortune type device. Other programs use lotto numbers or dice. Be sure to ask which system is used when you interview.