Undervalued skills, lower healthcare spending, conflicting interests, and lower insurance penetration contribute to lower Doctor (MD) Salaries in India
Higher Skill DOES NOT equal Higher Pay
In a country like India, Higher Skills in the form of education is no barometer for Higher Pay. Additionally, although an MD degree is a high gauge for education, professionals with similar education such as HR professionals, bank relationship managers, and loan processors get paid much higher salaries compared to doctors.
Healthcare Allocation by the Government
India’s healthcare spend to GDP is 4.7%. India ranks 189th in Healthcare Spending to GDP. Countries such as Zambia, China, Turkey, Vietnam, Colombia and Spain spend more on Healthcare. Additionally, allocating funds towards day to day hospital maintenance costs results in lower doctor salaries. Furthermore, the reasons doe lower maintenance costs can be attributed to lower spending by the government.
Conflicting Interests: Serve the Society vs. Profit
Lawyers, Chartered Accountants, Financial Advisers, and other consultants purely work on the purpose to profit from their services. However, doctors are unique and work for the purpose to benefit society and for the greater good of the community. Moreover, due to these contrasting work ethics, many a time doctors are willing to work even on negligible salaries.
Low Medical Insurance Penetration
Medical Insurance does NOT cover 80% of India. Absence of Insurance treatment liabilities result in excessive stress on patient lives. Hence, hospitals and other healthcare facilities are not able to fairly charge patients for treatments compared to developed countries that have 75% or more insurance penetration.
In Summary, even with the shortage of 76% GP doctors and 88% specialist doctors in the country, doctors are in a quandary on charging higher fees or protecting the larger interests of the society and the government.
Click Here to read “MD Salaries in India: Lowest in the World.