From the Guidelines
Resident physicians earn significantly less than their economic value to hospitals, generating substantial savings through their clinical work, with hospitals saving an estimated $1.8-$2.1 million per resident over the course of their training. Studies have shown that residents typically earn between $50,000-$70,000 annually, depending on specialty and location [no direct evidence provided]. However, according to a report by the American College of Cardiology/American Heart Association task force on clinical practice guidelines 1, the cost considerations of implementing intervention strategies in hospitals are complex and multifaceted, making it difficult to reach conclusions about the cost effectiveness of different interventions. Some key points to consider include:
- The economic disparity between resident salaries and their value to hospitals exists because residents work approximately 80 hours per week providing direct patient care, staffing emergency departments, performing procedures, and covering overnight shifts.
- The Medicare Graduate Medical Education (GME) funding system benefits hospitals, as institutions receive approximately $150,000 per resident annually to support training programs, while paying residents only about one-third of that amount in salary.
- Residents represent a cost-effective workforce that generates substantial clinical revenue while receiving compensation well below market value for their clinical contributions. It is essential to consider these factors when evaluating the economic value of resident physicians to hospitals, as they have a significant impact on the financial incentive for hospitals to maintain residency programs beyond their educational mission.
From the Research
Studies on Residents' Salaries and Hospital Savings
- There are no direct studies provided that examine the relationship between residents' salaries and hospital savings 2, 3, 4, 5, 6.
- The available studies focus on burnout among healthcare professionals, including residents, and its consequences on their well-being and job performance 2, 3, 5, 6.
- One study found that burnout among general surgery residents was associated with thoughts of attrition and suicidal thoughts, highlighting the need for hospitals to address burnout to retain staff and improve patient care 2.
- Another study identified coping strategies that can help reduce burnout among healthcare workers, including social and emotional support, physical activity, and setting boundaries 3.
- However, none of the provided studies explicitly examine the financial aspects of residents' salaries and hospital savings, making it difficult to draw conclusions on this topic.