Israel Faces Doctor Shortage as Quarter of Specialists Near Retirement

A new report from Israel's Ministry of Finance reveals that 24% of specialist physicians in public hospitals are nearing retirement age, exacerbating an existing shortage of medical professionals. The report, focusing on 2023-2024 salary expenditures, highlights that this impending wave of retirements will worsen the critical lack of doctors, particularly in specialized fields. For instance, 48% of palliative care specialists, 47% in clinical pharmacology, and 36% in pediatric surgery are approaching retirement.

The report, released as salary negotiations with doctors commence, serves as both a statistical snapshot and a strategic opening position for the Treasury. It indicates that while doctors in the public system are generally well-compensated, with an average gross salary of NIS 22,560 per position in hospitals and NIS 23,326 in community clinics, salary structures do not always align with areas of greatest need. A significant portion of healthcare workers, over 71% in hospitals and 62% in community clinics, earn above NIS 15,000 per full-time position, with more than a quarter exceeding NIS 25,000.

Disparities in compensation are notable, with senior specialists in the periphery earning substantially more than their counterparts in central Israel. A senior specialist in a central hospital earns an average of NIS 39,282 per position, compared to NIS 52,213 in cities like Safed and Tiberias, a difference of 33%. This higher pay in the periphery is largely attributed to a greater number of on-call shifts due to staff shortages, rather than a deliberate incentive policy. The report also points to a gender pay gap, with women earning 19% less than men in hospitals and 40% less in community clinics, partly due to men receiving higher compensation for additional work and management roles.

Furthermore, the report scrutinizes payments made by health corporations, which operate separately from public hospitals after 4 PM. Approximately 31% of a specialist's total salary can come from these corporations, often with less oversight than direct hospital salaries. The report suggests that these payments, along with the higher salaries in community clinics (a 24% difference compared to hospitals), indicate a trend of specialists moving away from hospital work. The lack of a national plan for specialist training, which does not currently align with areas facing shortages, is also identified as a key issue.