What Factors Affect Family Medicine Salaries?

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  • Written By: Ron Marr
  • Edited By: A. Joseph
  • Last Modified Date: 27 November 2019
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The salary of a family physician might be influenced by a wide variety of cultural and economic factors. A discrepancy exists between the family medicine salaries of physicians who are in private practice and those who work under the umbrella of a hospital or health maintenance organization. A physician's income also depends on the country in which he or she practices, based partially upon whether the nation's government provides partial or fully subsidized healthcare services. Another element that plays a significant role in family medicine salaries is the physician's geographic location.

Studies have consistently shown that family medicine salaries are lower than the compensation earned by surgeons and specialists. The disparity is sometimes offset by the length of time that a family physician has been in practice. As is true with most career professionals, those individuals who have established themselves within a community over a period of years tend to build a large client base. A greater number of patients translates directly to higher revenue, and a veteran family doctor who has an excellent reputation might surpass a specialist in terms of income.


Family physicians often make up the largest percentage of a rural area's medical personnel. The number of family doctors in a major city might number in the hundreds or even thousands, whereas the number in a small town might be counted on one hand. The laws of supply and demand come into play, and competition at times causes family medicine salaries to be lower in the urban location than in the rural. This is particularly pertinent when cost-of-living adjustments are factored into the revenue equation.

In some countries, a high percentage of the patients seen by urban doctors are covered by private health insurance. Rural doctors might more frequently see patients whose healthcare needs are subsidized by government programs. Private insurance usually surpasses publicly funded programs with regard to the medical procedures covered and the level of fees paid to the physician. Family medicine salaries are often lower in countries where healthcare is fully paid for by the government or where government healthcare programs are prevalent.

Family doctors who are employed by a hospital or are hired by medical groups that feature an array of specialists generally receive a higher rate of pay than those in small or individual practices. This is partly because a hospital or group tends to receive payment from a wide range of sources and employs staff members who specialize in dealing with insurance companies and governmental health agencies. Such large operations are frequently more cost-efficient than small practices, enabling a higher rate of pay for on-staff physicians.


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