If you’re a physician considering a job change — or simply curious about the current physician job market — physician compensation is trending in your favor. The ongoing physician shortage has meaningfully shifted the balance of power toward physicians, and understanding what employers are doing to compete for talent can help you walk into any negotiation with clarity and confidence.
As Vice President of Physician Recruitment for the Western region of Jackson Physician Search, I work with organizations to shape competitive physician compensation packages that will attract strong candidates. I also talk to physicians regularly about their expectations and things to consider when evaluating physician compensation.
In a recent trends report from Jackson Physician Search, my colleagues and I explore how physician expectations are evolving and the ways employers are responding to attract and secure top providers. This post highlights a few insights on physician compensation, but for a more in-depth look, you can read “The New Physician Recruitment Reality: Current Trends and the Road Ahead.”
Physician Compensation Is Rising Steadily
You may have heard that physician compensation is booming. The reality is a bit more nuanced. According to Medscape, physician compensation grew approximately 2.9% from 2023 to 2024. Doximity reported 3.7% growth for the same period. Forbes’ coverage of MGMA’s 2025 data showed annual gains ranging from about 3% to 5.5%, depending on specialty. Our own data at Jackson Physician Search found an average increase of around 2.8% in 2025 over the prior year.
So yes, physician compensation is trending upward, but not in dramatic leaps. The more important story isn’t the average; it’s where competitive offers are landing. In today’s market, employers who are successful in hiring are typically offering base salaries between the median and 75th percentile of MGMA benchmarks. Organizations trying to recruit below the median are struggling, no matter how attractive the rest of the package looks. Our physician salary calculator is always available to help you compare locations and estimate salary, benefits, incentives, and bonuses for over 20 specialties. If you’re evaluating an offer that falls well below the market median, you should feel empowered to speak up with your concerns.
Base Salary Guarantees Are Getting a Closer Look
As demand for physicians continues to outpace supply in many markets, guaranteed bases are creeping upward, particularly in higher-demand specialties and underserved regions. This is worth understanding as you evaluate offers.
A well-structured guarantee should reflect what you can realistically expect to earn once you’ve built your panel and hit your stride. Employers who present a lower guarantee may be doing so out of excessive caution, but it is worth asking questions to understand how they arrived at that figure and if it is an accurate representation of what physicians in the practice are earning. A strong employer will be able to show you exactly how compensation projections are built: expected patient volume, collections assumptions, and what physicians already in the practice are earning. If that transparency isn’t there, it’s reasonable to ask for it.
Recruitment Incentives Are Where Things Get Interesting
This is arguably the most important shift in today’s compensation landscape: recruitment incentives are growing faster than base pay. At Jackson Physician Search, 81% of our placements in 2025 included recruitment incentives, up from 77% the prior year. Many of those packages reached six figures.
These incentive pools — often ranging from $150,000 to $300,000 — can be allocated in ways that are tailored to your individual situation. Signing bonuses, student loan repayment, relocation assistance, residency stipends, and down payment assistance are all on the table. The key is that these are negotiable and customizable. You don’t have to accept a generic package. If student loan repayment is your top priority, say so. If you need relocation support, ask for it. Employers who are motivated to hire you are often more flexible than their initial offer implies.
One structure worth understanding: upfront bonuses with annual forgiveness, where the tax liability is spread incrementally rather than hitting all at once. This approach benefits both sides — you keep more of your money, and the organization gains a built-in retention incentive.
Don’t Overlook the Non-Financial Side
Compensation is about more than salary and bonuses. Schedule flexibility has become one of the most significant differentiators in physician job searches right now, particularly for early- and mid-career physicians. Four-day workweeks are increasingly the expectation, not the exception. Remote administrative days, flexible block scheduling, and protected time away from clinical duties are all being offered with greater frequency.
Culture matters, too. Autonomy in clinical decision-making, clear pathways to leadership, and genuine alignment between an organization’s values and how it operates day-to-day — these things have real, lasting impact on your professional satisfaction. If you’re a physician early in your career, you are wise to recognize that factors beyond compensation significantly impact job satisfaction and evaluate them accordingly.
The Bottom Line for Physicians
If you’re exploring your options right now, you’re doing so from a position of strength. Physician demand is high, employers are competing for talent, and the most motivated organizations are building thoughtful, flexible packages to win candidates like you.
The best move you can make is to come prepared. Know your market value, know what matters most to you in a total package, and don’t hesitate to ask questions and negotiate. A great employer will welcome that conversation.
If you’d like to explore what opportunities might look like for you right now, the team at Jackson Physician Search is here to help. Search physician jobs online or reach out directly. We’d be glad to talk through the market with you.
About Jeff Foster
With more than 15 years of experience in healthcare strategy and physician recruitment, Jeff Foster has partnered with hospitals, health systems, and academic centers across the country to strengthen their recruitment programs and improve processes.
A West Virginia native, Jeff began his career at Charleston Area Medical Center, where he specialized in candidate acquisition, practice start-up, and service line expansion. He later joined National Jewish Health, the nation’s #1 respiratory hospital, to help develop a strategic faculty recruitment office.
In 2016, Jeff joined Jackson Physician Search as one of the first team members in its Denver office. Since then, he has built a reputation as a leading expert in physician recruitment — earning Consultant of the Year multiple times and advancing to his current role as Regional Vice President of Recruiting. In this role, he not only works directly with hospitals to secure top talent but also mentors a growing team of recruiters, helping them achieve long-term career success.
What Jeff values most is seeing people thrive — whether it’s physicians finding their dream jobs, healthcare organizations strengthening their teams, or colleagues achieving new milestones in their careers.
Outside of work, Jeff enjoys skiing, playing soccer, and exploring the outdoors with his wife in Denver.
