PHYSICIAN INCOMES UNDER AN ALL-PAYER FEE SCHEDULE

This DataWatch estimates physicians' net incomes under various scenari os for universal adoption of the Medicare fee schedule. American Medic al Association (AMA) data on physicians' gross incomes by payer are ad justed for differences in fees across Medicare, Medicaid, and private payers. Net income (gross income net of practice costs) is shown under several alternatives. Average net incomes would range from roughly $1 00,000 to $200,000, depending on specialty and the particular assumpti ons used. General practitioners' incomes would typically rise, and inc ome differences across specialties would be narrowed significantly. Th e Medicare fee schedule, as intended, would increase incomes of primar y care physicians relative to specialists.