TLDR
- Several factors contribute to a physician’s salary in Canada, which can vary greatly
- Medical specialty, location and number of patients are the primary drivers of a physician’s salary
- Owning your own practice, while it comes with more risk, tends to come with better income opportunities
- Academic research and teaching can boost a physician’s income
This is an edited version of a story previously published on Dr. Bill.
As of December 2024, the average physician salary in Canada ranges from $85,583 per year to $439,534. What drives such a wide gap? These 6 factors will help shed some light.
1. Number of patients
The average physician salary in Canada comes from several sources. The main one is a fee-for-service model that allows physicians to bill the government for each patient they see: for every service, Canadian doctors claim and submit to the government for compensation. Under this model, the average doctor’s salary will depend on how many patients they are able to see in a day, what services they’re providing and the province where they operate. According to the latest available data from the Canadian Institute for Health Information (CIHI), family medicine doctors bill an average of $56 per service, while medical and surgical specialists bill $104 and $127, respectively.
According to the same data, roughly 70% of physicians work under a fee-for-service model. The other payment models are alternative payment plans (which usually include some fee-for-service tasks) and salaries.
2. Specialization
Your specialization will influence the rate you charge per visit, which in turn determines your annual salary. According to the CIHI, the average gross clinical payment per physician in 2022-2023 was $369,000. Family medicine doctors earned $308,000, medical specialists earned $394,000, and surgical specialists earned an average of $531,000. Keep in mind these numbers reflect the gross amount billed to the provincial government, and don’t include the amount doctors pay in practice overhead, taxes or other expenses, which can add up to 20-30%.
It’s worth noting that highly specialized medical fields will typically command higher salaries, but may also come with more years of schooling, more hours, or a more stressful working environment. If you have yet to choose a specialization, be sure to consider all factors that may influence your decision.
3. Location
A primary driver of salary fluctuation is the province and location in which a doctor chooses to practice. While all provinces and territories use the fee-for-service model, there is some variability in what you are allowed to charge in each province. That said, your level of specialization tends to even out any location premiums. For example, according to the latest CIHI health workforce data:
- Family physicians earn an average salary of $230,152 per year in BC and $346,752 in Ontario
- Cardiologists in BC earn $762,622 per year versus $682,031 in Ontario
- Psychiatrists earn $286,158 in BC versus $240,483 in Ontario
In addition, there are certain communities where the government will incentivize doctors to work. These programs provide student loan relief and bursaries to doctors who are interested in working in approved underserved or rural areas across Canada. For new doctors, working in these programs could quickly boost their annual salary and help them pay off medical school debt faster.
4. Whether you receive alternative payment methods
Depending on your specialization, you may be able to earn more for your services outside the fee-for-service model. These alternative methods include salaries, sessional and hourly rates, capitation models and contract work. According to Glassdoor, the average physician salary is $205,000, although this figure doesn’t account for fee-for-service billings or the number of hours worked. Salary contracts allow physicians to earn income through means other than just seeing patients. These other models of payment apply mainly to family doctors.
Where you live matters as well — the same CIHI data suggests alternative doctor salaries in Canada vary by province, with approximately half of doctors in Ontario receiving some form of alternative payment, while approximately 17% of doctors in Alberta say the same. Alternative payment methods could look different for every doctor, but are often used to give physicians who live in areas with fewer patients a more consistent income. They also provide a more reasonable salary for time-consuming patient protocols or procedures.
5. Whether you have your own practice
Doctors with their own medical practice can pay themselves a salary from their practice income. As such, working in a hospital or for a larger medical institution can mean a lower average annual salary. Incidentally, doctors with their own medical practice also report being happier and having a better work-life balance compared to those working in a hospital environment.
If you’re thinking about opening your own private practice, keep in mind that you will be financially responsible for the overhead and monthly fixed costs in addition to your student loan payments. If you’re considering this path as an option, financial stability is important. Chances are, you will likely be taking on debt to finance your practice for the first few years, and you don’t want to leave yourself overextended.
6. Whether you do research or teach
Your research interests can also have an impact on the amount of salary you could earn. Through working with a university or a research institute, some doctors can earn a higher salary by teaching, researching, and planning and organizing conferences, whether on a sessional or contract basis.
Physicians can also earn money through research grants, such as those through the Medical Council of Canada, fellowships or research stipends. The amount you can earn through academic means really depends on how much you want a clinical career versus an academic one. While this route might not be for everyone, if you enjoyed research in school or are heavily invested in your area of study, this can be a fulfilling way to boost your income.
Medical doctors in Canada have considerable flexibility when it comes to earning income in their field. In addition to the fee-for-service model that makes up the largest share, there are plenty of creative ways to earn more per year. As the salary of a medical doctor in Canada can differ based on where you live, how many patients you see, and what you studied in school, medical students have several factors to consider when choosing a specialization.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
