Here is an interesting chart showing which occupations in the country have the highest cash compensation. Now it is very misleading in that it misses all the non-cash compensation that business people get–stock option awards and restricted stock grants that dramatically raise their compensation. But high cash compensation is real money that the ultimate consumers of any business end up paying in the price for services and goods produced by those receiving that high compensation. It ranks the top 30 occupations by average cash compensation. Twenty-four of the 30 are medical professionals, mostly specialty physicians. At the very top are pediatric surgeons, cardiologists, general surgeons, orthopedic surgeons, dental surgeons, radiologists and so on. The first time a non-physician shows up is pilots at number 13. (VC Chart)
High pay to these doctors means very high bills for their services. Now I have often said that I am conflicted about physician pay. It clearly is a factor in our high health care spending. But doctors have extremely hard jobs. They spent a fortune getting a medical degree. They work long hours. They literally have our health and our lives in their hands. They often deal with difficult patients. They deal with crazy regulations and burdensome administrative requirements, including medical software. So the job has many negatives. But the high compensation is a major reason for high spending.
