Academic physicians across specialties earn less than their non-academic counterparts, according to a blog post from Marit Health, a salary transparency platform for physicians and advanced practice providers.
The post notes that academic roles often come with non-monetary perks, including more predictable hours, lighter call schedules and generous benefits. These positions also offer prestige, teaching and research opportunities and job stability.
“It’s important to remember that lower pay in academics doesn’t mean those jobs are undesirable – it just reflects a different set of priorities and rewards,” the post read. “Many physicians find value in the academic environment: the chance to teach, the pursuit of research, and being part of a prestigious medical center. These roles can offer intangible benefits and lower burnout, despite a smaller paycheck.”
1. Clinical workload
Academic physicians typically see fewer patients than their private practice counterparts because they split time between clinical duties and nonclinical responsibilities, such as research and teaching. These activities generate less billable revenue.
This is the largest driver of the pay gap, according to the post. Specialties where academic physicians devote a smaller share of time to clinical work tend to see the greatest salary differences compared to private practice.
2. Payer mix
Academic medical centers often serve as safety-net hospitals, treating a higher proportion of patients covered by Medicaid or Medicare, which reimburse at lower rates than commercial insurers.
3. Case mix
Academic centers handle more complex cases and research trials. While these are clinically important, they tend to be time-intensive and less financially lucrative, according to the post.
4. Institutional overhead
A portion of clinical revenue in academic settings supports the institution’s broader mission, according to the post. This includes funding residency programs, maintaining research infrastructure and covering extensive administrative costs.
In contrast, smaller private practices divide profits among fewer individuals, whereas academic earnings are distributed through departments and administrative budgets.
5. Compensation models
Academic physicians are more often salaried employees with limited bonus opportunities. Non-academic physicians, by comparison, typically work under productivity-based or partnership models that can significantly increase earnings.
