Healthcare people group. Professional doctor working in hospital office or clinic with other doctors, nurse and surgeon. Medical technology research institute and doctor staff service concept.

Average starting salaries for physicians are climbing due to a combination of high demand and limited supply, according to AMN Healthcare’s 2023 Review of Physician and Advanced Practitioner Recruiting Incentive report.

Year-over-year, the average starting salary is up 19% for psychiatrists, 16% for dermatologists, 12.5% for anesthesiologists, and 12% for orthopedic surgeons. At $633,000, orthopedic surgeons have the highest starting salary overall, while pediatricians have the lowest at $233,000.

“Rising physician starting salaries are a clear sign that demand for physicians is surging,” Leah Grant, President of AMN Healthcare Physician Solutions, said in a press release. “Virtually every hospital in the United States, and many other entities, are seeking physicians.”

Grant noted that competition from organizations like retail clinics, urgent care centers, telehealth platforms, insurance companies, and private equity firms is increasing demand for physicians. “Healthcare is evolving as new market entrants seek to change how and where care is delivered,” she said.

The report also shows that demand for specialists is increasing while demand for primary care physicians has cooled. Grant said this is due to an aging population that requires more specialists as well as the growing number of nurse practitioners and physician assistants who are providing primary care.