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.