Federal government physicians are paid less than their private sector counterparts, a new General Accounting Office report says. In some cases, federal doctors are paid half of what doctors in the same specialty in the private sector are paid.
The federal government employs about 25,000 doctors. Half are military physicians, while the other half are primarily divided up among other Defense components and the departments of Veterans Affairs and Health and Human Services.
The average federal physician's salary ranged from $78,250 for military doctors to $128,540 for Veterans Affairs doctors. The military average is lower primarily because physicians in the armed forces usually do not make the military a career. Thus, a majority of military doctors are lower-ranking and lower-paid than career federal physicians.
While statistics on private sector physicians' pay are not consistent, the average general surgery physician in the private sector is paid between $170,000 and $216,560. By contrast, the average Veterans Affairs general surgeon is paid $138,710 and the average military general surgeon is paid $100,960.
Agencies have complained to Congress and the Office of Personnel Management over the years that they have difficulty retaining doctors because salaries are not competitive. Both Veterans Affairs and HHS have been granted special pay authority to offer doctors more competitive salaries.
The VA is beginning to study its physician pay system to find the most fair way to compensate doctors and keep them in the government. One proposal being considered would reward doctors for being highly productive with bonuses or other incentives.
HHS has used special pay authority to retain good doctors, but has used it sparingly because of budget constraints, department officials told GAO.
To see the GAO report, click here.
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