Medical directors paid too little?

Scroll down for text

Managed care, it seems, is least rewarding for those physicians who are most immersed in it: the medical directors. A report from Ernst & Young, the giant worldwide accounting and consulting firm, implies that medical director income varies inversely with administrative duties. While people in this position need to have all the skills of a physician, they must also have administrative capabilities that increasingly require special training. Yet E&Y found that medical directors who spend less than half their time at that job (and more than half in a clinical setting) "enjoy total cash compensation that is 14 percent higher at the competitive market median than those with primarily administrative responsibilities." While it makes sense for medical managers to be practicing physicians, Ernst & Young asserts that "The next generation of successful medical managers must make a full-time commitment to fully master the complexities and functional demands of the job." Without higher compensation, it will be difficult to recruit capable people for these positions.


Career Opportunities

HAP, a subsidiary of Henry Ford Health System, is a nonprofit health plan providing coverage to individuals, companies and organizations. This executive develops strategies to meet membership and revenue targets through products, pricing, market segmentation and advertising.  Aligns business among Business Development, Commercial Sales, Medicare and Public Sector Programs and Product Development. Seeks to enhance and be responsible for business development and expansion through the development of an effective product portfolio, strong interpersonal relationships and service excellence.

Apply via email to or online at

Subscribe to Our Newsletters

Monthly table of contents

Be notified as each issue of Managed Care is available online.

Biweekly newsletter

Recent topics have included:

PTCommunity news

New drug approvals, clinical trials, drug management. Three times per week.


Managed Care
By Peter Wehrwein
Managed Care
By Howard Wolinsky