Doctor Salary & More: What To Know About Practicing in California

There are many important factors to consider when choosing a place to practice medicine. It is crucial to find a location that offers the best career opportunities, but it’s also essential to choose a state with supportive legislation and regulations. It’s equally important to consider the potential doctor salary in California.

The state of California is an excellent place for physicians looking to start or continue their careers. The following guide will provide an overview of the medical landscape in California, including information on licensing requirements, insurance coverage, doctor salary, and more.

So, if you’re considering practicing medicine in California, read on for all the details you need to know.

Table of Contents

Licensing Requirements

The first step to practicing medicine in California is to obtain a license from the Medical Board. The process for doing this is as follows:

1) Submit an application, including all required supporting documents.

When applying for a license, you’ll need to provide the following:

Official transcripts from medical school
A notarized copy of your diploma
An application fee

2) Pass the California Medical Licensing Exam (CMLex).

The California Medical Licensing Exam, or CMLex, is a two-day exam that all medical students must take to become licensed physicians in the state of California. The exam covers various topics, including anatomy, physiology, pharmacology, and medical ethics. It is administered by the California Board of Medicine, and students can take the exam in person or online.

The CMLex is considered to be one of the most difficult licensing exams in the country, and only about half of all students who take the exam pass. However, those who do pass the CMLex will be well on their way to becoming licensed doctors in California.

3) Complete an ethics examination.

The Medical Board of California requires all applicants for licensure to complete an ethics examination. This exam is designed to test your knowledge of the ethical principles that guide the practice of medicine. The exam is administered by the Federation of State Medical Boards, and you must pass it to be licensed in California.

4) Have your credentials verified by the Medical Board of California.

After you’ve completed all of the above steps, you must have your credentials verified by the Medical Board of California. This includes sending in official transcripts, diplomas, and any other required documentation.

5) Obtain a license from the Medical Board of California.

With this license, you’ll be able to practice medicine in the state of California. To maintain your license, you’ll need to renew it every two years and complete continuing medical education (CME) requirements.

Number of New Medical Licenses Issued in the State

In California, the number of new medical licenses issued each year has been steadily increasing. In 2020-21, 8,206 new medical licenses were issued in the state. This is an increase from 7,997 new licenses issued in 2019-20, and 6,694 licenses issued in 2017-18.

Types of Licenses Issued

The most common type of license issued in California is the standard medical license. This license allows physicians to practice medicine without any restrictions. Other types of licenses that are available include:

Limited physician’s assistant license
Conditional limited license
Educational limited license
Research limited license

Specialties That Are Not Getting Renewed

Some medical specialties are not getting renewed as often as others in California. This could be due to many factors, including a lack of need for that particular specialty in the state. The specialties that are not getting renewed as often include:

CME Credits Required to Maintain a Medical License in California

Obtaining your medical license in California is a complicated, yet necessary task if you plan to pursue a career in health care in the Golden State. Read our guide on the Steps to Get Licensed with the Medical Board of California.

To maintain a medical license in California, physicians must complete 100 hours of continuing medical education (CME) every two years. Of these 100 hours, a minimum of 50 hours must be completed in Category 1 activities, as defined by the American Medical Association. Category 1 activities include attending conferences, taking courses, and participating in grand rounds.

How often do you need to renew your license?

In California, medical licenses must be renewed every two years. Physicians must complete 100 hours of continuing medical education (CME) during each renewal period. If you do not renew your medical license, you will not be able to practice medicine in the state of California.

What is the process for renewing your license?

To renew your medical license in California, you must complete the abovementioned procedure. Read our guide on the Steps to Get Licensed with the Medical Board of California.

You can renew your license online or by mail. To renew online, you’ll need to create an account with the Medical Board of California. Once you’ve logged in, you’ll be able to complete the renewal process. You can download the renewal form from the Medical Board of California website and submit it, along with the required fee, to the address listed on the form

Thinking about buying a home in California? Read this: How to Navigate Buying a Home in the Current Market.

Malpractice Insurance

In California, not all physicians must have malpractice insurance to practice medicine, but still, some choose to purchase it. You will want to consider the type of policy, various options offered, whether or not you need tail insurance, and the benefits of the policy.

The reason for this is that, in California, medical malpractice suits are capped at $250,000. If you’re sued for medical malpractice and the damages awarded exceed $250,000, you will not be responsible for paying any additional damages.

However, suppose you do not have malpractice insurance and are sued for medical malpractice. In that case, you could be responsible for paying the full amount of damages awarded by the court, which could exceed $250,000.

Furthermore, it’s important to note that California is a “direct action” state. This means that patients can sue insurance companies directly without first suing the physician. The litigious nature of patients in the state may offset the high doctor salary in California.

This is important to remember when choosing an insurance policy, as you’ll want to ensure you have adequate coverage in place.

Medical Malpractice Rates

The average cost of a medical malpractice policy in California is $13,000 per year. In the past 30 years, Californians have paid 138,110 medical malpractice claims. This means that, on average, each physician in California can expect to pay 1.3 medical malpractice claims over the course of their career.

So, if you’re considering practicing medicine in California, it’s important to be aware of the state’s medical malpractice laws and rates. However, don’t let the cost of a policy deter you from practicing in California. The state offers a variety of excellent opportunities for medical practitioners.

State Taxes for Physicians in California

Physicians in California are subject to state income tax. The state income tax rate for physicians is close to 10%. In addition to state income tax, residents in California are also subject to the state sales tax. The state sales tax rate is 7.25%.

Furthermore, physicians in California are subject to state disability insurance tax. The state disability insurance tax rate is 1.1%. Physicians in California are also subject to the state unemployment insurance tax of 3.4%. All told, the effective state tax rate for physicians in California is close to 22%.

Related Reading: How Physicians Can Avoid the Tax Trap Triangle

The Cost of Living in California

The cost of living in California is high, but this varies depending on the location. For example, San Francisco is notoriously expensive, while other parts of the state are more affordable. Compared to the rest of the country, the cost of living in California is about 38% higher.

The median home price in California is $898,980, which is significantly higher than the national median home price of $428,700 as of 2022.
The median rent price in California is $1,726, which is also significantly higher than the national median rent price of $1,326 a month.
The median household income in California is $78,672, slightly higher than the national median household income of $67,521.

That being said, it’s important to factor in the cost of living when considering a move to California. Make sure you have a realistic budget in place and understand the expenses you’ll be facing. You’ll need to ensure that the salary you earn as a doctor will correspond appropriately to these higher expenses in California.

The Weather in California

The state has a Mediterranean climate, which means it experiences mild, wet winters and dry, hot summers. California is known for its beautiful weather, with warm summers and mild winters. However, the state is also susceptible to weather-related hazards, including droughts, wildfires, and floods. As a result, Californians must be prepared for all weather conditions.

Luckily, many resources help residents stay informed about the latest forecast. The National Weather Service updates current conditions and forecasted weather patterns.

In addition, many local news stations offer up-to-date information on the state of the weather. By staying aware of the latest conditions, Californians can be better prepared for whatever Mother Nature throws their way.

Average Salary for Physicians in California

The average salary for physicians in California is $212461 per year. This is higher than the national average of $208,000. Salaries for physicians vary based on location, experience, and specialty. California has the highest salaries in the Bay Area and Los Angeles.

Physicians with more than ten years of experience tend to earn more than those with less experience. Specialists usually earn more than general practitioners. The lowest salaries are found in rural areas. Physicians in California also receive benefits such as health insurance and retirement plans.

Some other specialties can also earn a high doctor salary in California, such as:

Psychiatry – $269,350
Anesthesiology – $458300
Surgery – $464,328
Emergency Medicine – $383,403
Radiology – $488,790

These are just a few examples, but it’s important to remember that salaries can vary based on experience, location, and specialty.

Read this: Which Physician Specialties Retire Early?

In Demand Specialties

California has a great need for physician specialties. One of the most pressing needs is for primary care physicians. This is because California has a large population and a large number of people without health insurance. As a result, there is a demand for physicians who can provide quality care at an affordable price.

Other needs include psychiatrists, as the state has a high rate of mental illness. There is also a need for surgeons, as the state experiences many accidents and emergencies. Californians also have a higher than average cancer incidence, so oncologists are also in demand.

Specialties That Are Less in Demand

Some specialties are less in demand in California. These include dermatologists, ophthalmologists, and ENTs. This is because there are already a large number of these specialists in the state. And, because California has a large population, there is a corresponding demand for these services.

Best Business Formation for a Solo Practitioner in California

The answer to which type of business formation for a solo practitioner in California will depend on several factors, including the size and scope of your practice, your clientele, and your long-term business goals. For many solo practitioners, a sole proprietorship is the simplest and most efficient business formation.

This type of business requires no formalities or paperwork, and you’ll be able to operate under your name. Additionally, sole proprietorships are relatively easy and inexpensive to set up. However, there are some drawbacks to this type of business formation.

For example, sole proprietorships offer no personal liability protection, meaning that you could be held personally responsible for any debts or liabilities incurred by your business. Also, sole proprietorships can make it more difficult to attract investors or partners.

If you’re looking for more flexibility and protection, you may consider forming a limited liability company (LLC). LLCs offer several key advantages, including personal liability protection and the ability to raise capital through investment. Besides, LLCs can be structured in various ways, giving you the flexibility to tailor your business to your specific needs.

However, LLCs are more expensive and complicated to set up than sole proprietorships, and they may require compliance with additional state regulations.

Ultimately, the best business formation for your solo law practice will depend on your unique circumstances and goals. Before deciding on a particular business structure, be sure to consult with an experienced attorney to determine which option is right for you.

Read this: How to Start Your Own Medical Practice

K12 Schools in California

There are a variety of excellent K12 schools located throughout California. Some of the top schools include:

Medical Schools

California is home to some of the best medical schools in the country. Some of the top schools include:

Areas of Interest in California

There’s no shortage of things to do in California. Whether you’re interested in exploring the great outdoors or checking out some of the state’s renowned museums, you’ll find plenty to keep you busy. For nature lovers, there are plenty of hiking trails and camping sites to explore, as well as stunning beaches and National Parks.

If you’re more of a city person, California’s cities offer a wealth of activities, from towering skyscrapers and bustling streets to world-famous museums and attractions. And, of course, no trip to California would be complete without spending some time in wine country, where you can sample some of the best wines in the world. No matter your interests, you’re sure to find something to love in California.

The Best Cities to Practice Medicine in California

As a medical practitioner, you have many things to consider when choosing where to set up your practice. You want to be in a location with a high demand for your services, good weather, and a strong economy.

With so many options, deciding where to open up shop can be tough. To help narrow your search, we’ve compiled a list of the top three cities in California to open a medical practice.

San Francisco

If you’re looking for a booming economy and plenty of patients, San Francisco is the place for you. The city’s population is proliferating, and there is a constant demand for new doctors.

In addition, the city’s diverse population means you’ll be able to treat patients from all walks of life. And with its mild weather and beautiful surroundings, San Francisco is a great place to live and work.

Los Angeles

Like San Francisco, Los Angeles is another city with a large and diverse population. However, what sets LA apart is its world-renowned hospitals and medical research facilities.

If you’re looking for an opportunity to learn from the best and brightest in the medical field, Los Angeles is the place for you. Additionally, LA’s warm weather and beach access make it a great place to live and work.

San Diego

If you’re looking for great weather and a laid-back lifestyle, San Diego is the perfect place to open up your medical practice. While the city may be best known for its beaches and tourist attractions, it also has a thriving healthcare industry.

San Diego is home to several large hospitals and medical research facilities, making it an ideal place to further your medical career.

All three of these cities have unique benefits, making them ideal places to practice medicine. When choosing the right location for your business, be sure to consider all of your options so that you can find the perfect fit for you and your needs.

Top Reasons to Practice Medicine in California

Outside of the high doctor salary, topping the list of reasons to practice medicine in California is the state’s large population and diverse patient base. With nearly 40 million residents, California is the most populous state in the country. And because the state is home to such a large and varied population, physicians who practice here can gain experience treating a wide range of patients.

What’s more, California’s mild climate means physicians can enjoy year-round outdoor activities, from hiking and biking to surfing and sailing.

Other reasons to practice medicine in California include:

A large number of medical schools and teaching hospitals: California is home to 16 accredited medical schools and nearly 200 teaching hospitals. This abundance of resources means that physicians in the state have access to the latest medical technologies and treatments.
A strong economy: Thanks to its vibrant tech and biotech industries, California boasts a strong economy. This can be beneficial for physicians looking for stable employment.
A supportive regulatory environment: California has taken steps to support the physician workforce. For example, the California Medical Association (CMA) has reduced the number of hours physicians are required to work.

If you’re considering a career in medicine, California is an excellent state to consider. The state’s large population and diverse patient base can provide you with ample opportunities to learn and grow as a physician. Plus, the state’s strong economy and supportive regulatory environment can offer you stability and peace of mind.

Top Reasons Not to Practice Medicine in California

While the high doctor salary is tempting, there are also some drawbacks to practicing medicine in California. One of the biggest is the cost of living. Thanks to its high-powered economy, the state is home to some of the most expensive real estate in the country. This can make it difficult for physicians to afford a comfortable lifestyle.

Other reasons not to practice medicine in California include:

A competitive job market: With so many physicians vying for positions in the state, the competition for jobs can be fierce. This can make it difficult to secure a position, especially if you don’t have connections.
High taxes: California is known for its high taxes, which can take a big bite out of a doctor’s salary.
A challenging regulatory environment: California’s regulatory environment can be challenging for physicians. For example, the state requires all physicians to complete continuing medical education (CME) credits every year.

Final Thoughts

Overall, California is a great state for physicians, due in part to the potential doctor salary in California. However, it’s important to weigh the pros and cons before deciding. If you’re considering a career in medicine, California is an excellent state to consider. The state’s large population and diverse patient base can provide you with ample opportunities to learn and grow as a physician.

Moreover, the state’s strong economy and supportive regulatory environment can offer you stability and peace of mind. However, you should be aware of the state’s high cost of living and the competitive job market. Although you’ll likely receive a high doctor salary in California, there are correspondingly high taxes. Consider all of these factors before deciding where to practice medicine.

Still deciding where to go? Maybe a different sunny state, like Florida? Read our Top 10 Places to Live & Work and consult our Annual Physician Compensation Report to help with your decision.