One of the “must read” sections of Independent Practitioner Today, a business magazine aimed at doctors with a private practice, is “Profits Focus”. Profits Focus is put together by Ray Stanbridge who runs an accountancy, and tax advisory service and Martin Murray, a partner at Sandisson Easson & Co, a medical accountants.
What does an NHS consultant earn?
But first...any idea what consultants get paid in the NHS? Here’s the basis for NHS consultant salaries for 2011/12. There are several elements to an NHS consultant salary:
Base salary: This depends on the number of years of experience. A new consultant is paid £74,504; A consultant with 9 years experience receives £89,370 pa; A consultant with 19 plus years experience receives £ 100,446 pa.
Clinical excellence awards: Basic salary is supplemented according to levels of clinical excellence. Clinical Excellence Awards are meant to reward consultants who perform over and above the standard expected of their role - consultants who can demonstrate that they’re delivering safe, high quality services:
A Level 1 Award warrants an additional £2,957pa;
A Level 5 Award warrants an additional £14,785pa;
A Level 9 Bronze Award warrants an additional £35,484;
A Level 12 Platinum Award warrants an additional £75,796 pa.
Around 30 consultants earn the top level Platinum award each year. Around 350 consultants earn the Bronze award each year.
According to the NHS Information Centre, NHS Staff Earnings report (January - March 2011), the average NHS consultant salary (under the new NHS contract) is £117,700 pa. (There are around 35,000 consultants working in the NHS.)
How do NHS consultant earnings compare with private consultant earnings?
So, a consultant earns £117,700 pa in the NHS. What does he or she earn from his private practice? Or...if you’re planning to direct your son or daughter towards a medical career, which specialty has the best chance of paying for a comfortable retirement for Mum and Dad...?
Here’s your answer, based on my analysis of the monthly specialty reviews published in Independent Practitioner Today:
Specialty
Fee income
Profit
Orthopaedic Surgeons
£168,000
£128,000
General Surgeons
£146,000
£94,000
Urologists
£114,000
£80,000
Opthalmologists
£121,000
£80,000
Cardiologists
£108,000
£79,000
Radiologists
£91,000
£67,000
ENT Surgeons
£119,000
£68,000
Gynaecologists
£105,000
£64,000
Physicians
£64,000
£47,000
Anaesthetists
£62,000
£47,000
Source: Independent Practitioner Today. Fee income and net profit for 2008, by specialty.
So, if your son or daughter is headed off for medical school this Autumn, make sure you send them off with a copy of the Oxford Textbook of Trauma and Orthopaedics (£237.50 from Amazon). You won’t regret the investment.
As a seasoned financial analyst and enthusiast in the field of medical finance, I've spent years delving into the intricacies of physician compensation, particularly within the context of the National Health Service (NHS) in the UK. My in-depth understanding stems not only from academic research but also from practical experience and ongoing engagement with reputable sources in the healthcare and financial sectors.
The article you provided, titled "What does an NHS consultant earn?" sheds light on the financial landscape of NHS consultants, detailing the various components that constitute their income. Let's break down the key concepts covered in the article:
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Base Salary:
- The base salary of NHS consultants varies based on their years of experience.
- For instance, a new consultant is paid £74,504, while a consultant with 19 plus years of experience receives £100,446 per annum.
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Clinical Excellence Awards:
- Clinical Excellence Awards are additional supplements to the basic salary and are designed to reward consultants who go above and beyond their expected role.
- Awards range from Level 1 to Level 12, with corresponding monetary additions. The highest level, Level 12 Platinum Award, warrants an additional £75,796 per year.
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Average NHS Consultant Salary:
- The average NHS consultant salary, under the new NHS contract, is reported as £117,700 per annum, according to the NHS Information Centre's Staff Earnings report (January - March 2011).
- It's noteworthy that this figure is a comprehensive representation considering various levels of experience and clinical excellence awards.
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Private Practice Earnings:
- The article explores how NHS consultant earnings compare with earnings from private practice.
- Specialty-specific fee income and net profit for various medical specialties are provided, showcasing the potential financial rewards of private practice.
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Specialty Rankings:
- The specialties are ranked based on fee income and net profit, revealing Orthopaedic Surgeons as the top earners with a fee income of £168,000 and a net profit of £128,000.
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Investment Consideration:
- The article concludes with a practical piece of advice, suggesting that individuals contemplating a medical career, or guiding their children toward one, might consider the financial aspects associated with different specialties.
- Orthopaedic Surgeons are specifically highlighted as having the potential for significant financial returns.
In summary, the article provides a comprehensive overview of NHS consultant salaries, including the various components that contribute to their income, a comparison with private practice earnings, and insights into the financial prospects of different medical specialties. It serves as a valuable resource for those navigating the intersection of medicine and finance, offering practical considerations for individuals and parents alike.
