Dr. Peter Onorato, an accomplished anesthesiologist, found himself at a crossroads. With a lucrative career and a substantial income, he was eager to grow his wealth. Like many high-income earners, Peter believed he could outsmart the market. Despite his wife’s concerns, he decided to invest over $300,000 in a tech startup after several days of online “research” and hearing from several colleagues in the doctor’s lounge about the expected 25-30 …
Noticing the local physicians who practiced in your area, stayed for two years or so, and then moved to a “different place to practice” (cover story—meaning they never made enough income to stay in practice in your area) involves thousands of physicians across our nation annually, which has led to the physician attrition crisis today. Not enough money or income is most often the cause.
You may not know that you …
As physicians, we spend years mastering our craft—learning how to diagnose, treat, and care for patients. But there’s another area that demands mastery if we want to secure our futures: wealth building. The truth is, despite the high earning potential that comes with a medical career, far too many doctors retire with less than they imagined. Why? Because earning is one thing, but building sustainable wealth that lasts is an …
“I’m in my final year of orthopedic surgery residency and will do a one-year fellowship (I finish July 2026). I’m in the early phases of talking to potential employers, many of which say they could offer a stipend as I finish my training. Do you have any advice on how a stipend should be optimally structured?”
Stipend secrets: Navigating your final year of residency
As you approach the final stretch of your …
It took me forever to retire—three years or so. It took so long that my nurses got tired of bringing me purple cakes decorated with whipped cream stethoscopes, but I did it. Now, a few years later, I can tell you that the things I worried about were not the ones that gave me trouble.
I had mostly agonized about money—had we saved enough to last us the rest of our …
When a physician signs on at a new hospital, a signing bonus is often included in the compensation package. This bonus can range from a small perk to a significant percentage of income, and its structure can be either straightforward or confusing. The signing bonus is one of the items in a physician’s compensation contract that can be negotiated, although some give-and-take is often involved. For example, in some situations, …
When planning for retirement, most of us focus on building a nest egg that will support us in our golden years. We diligently contribute to our 401(k)s, IRAs, and other retirement accounts, hoping to maximize our savings and minimize our tax burden. However, the passage of the SECURE Act and SECURE Act 2.0 have introduced new rules that could significantly affect how your retirement savings are passed on to your …
In today’s financial landscape, it is imperative for women in medicine to take charge of investing their own money. Physicians face a myriad of disadvantages when it comes to wealth building. The average medical student will be saddled with an average of $200,000 in student loan debt. The nature of prolonged medical training puts physicians at another disadvantage, with a high debt-to-income ratio until their mid-to-late 30s, causing them to …
A new, concerning trend in society has emerged online and across social media: money dysmorphia. It’s the latest version of the comparison trap and aims to describe a distorted view of one’s financial situation and how one is doing financially.
What is money dysmorphia?
Money dysmorphia is a psychological condition where individuals have distorted perceptions of their financial status, often leading to unhealthy behaviors and attitudes toward money. Similar to body dysmorphia, …
Having an ambitious understanding that small private medical practice businesses are the “belt and suspenders” that enable your medical career to approach your elite expectations for your medical career success is only part of your drive toward an illustrious medical career.
Your medical training, knowledge, and skills are how you grow, expand, maintain, and earn income. Physicians have struggled for decades to weave these two pillars into a highly functional, well-oiled, …
Most physicians step into their careers already burdened with over $200,000 in student debt, no assets to speak of, and a nagging feeling that they’re way behind. If you’re the primary breadwinner in your family, this pressure can be even more intense. Interestingly, most doctors didn’t pursue medicine for the paycheck. But once that MD is proudly displayed after their name, they are thrust into a relentless sprint to catch …
The wait is over! The highly anticipated 2024 MGMA DataDive, a federally recognized gold standard for physician compensation data, has finally arrived. This comprehensive analysis offers unparalleled insights into physician and advanced practice provider (APP) compensation, making it a crucial resource for staying informed in today’s health care landscape. While some may consider it the current “gold standard,” it is essential to remember that even the best data sets can …
The group’s story: facts and dynamics
This unique group of three interventional radiologists, each making a substantial income, found themselves in a situation where their compensation was not commensurate with their contributions. Their pay structure had not been updated in eight years. According to our analysis, each was making good money, but the pay was not fair (over $700k) by market standards. They were paid on a 1099 basis, paid their …
In the fast-paced environment of a doctor’s office, accuracy and operational effectiveness are paramount. Often bustling with activity, meticulous office coordination is needed to guarantee that every aspect runs smoothly. From managing patient records to ensuring the availability of medical equipment, the daily operations of health care facilities hinge on the seamless integration of various components. Every piece of equipment, every supply, and every record needs to be in the …
How can a group of dedicated general surgeons transform their compensation and work conditions in six months? Here’s their story.
The group’s story: facts and dynamics
Four general surgeons, one NP, and one PA for a specific physician have been practicing at a small community hospital with three ancillary facilities in the Northeast for many years. The group and staffing have been dependable, without turnover, for the past three years. Three physicians …
As a physician, you are accustomed to thinking about the future and planning for the well-being of your patients. However, have you considered applying the same foresight to your financial future? Investing in residential assisted living (RAL) homes is an opportunity that offers both financial security and the chance to make a meaningful impact on the lives of seniors. Here’s why RAL homes are an excellent investment now and for …
When you have been reviewing physician employment agreements for nearly four decades, you tend to get a little jaded about the possibility of ever seeing reasonable compensation for physicians. Although I am continually preaching to the choir about the need for reasonable physician compensation, I rarely see something that gives me encouragement that physicians may someday be paid appropriately for everything they do.
However, recently I have reviewed several agreements titled …
I often find that many doctors come to me with doubts and are grappling with the idea that they don’t know how to manage the business aspects of their private practice. However, in working with them, most come to the realization that the truth is that the skills required to run a successful medical practice are not as foreign as they may think. In fact, they are deeply rooted in …
Do you own a home? If so, you have an opportunity to generate tax-free income using the “Augusta Rule.” Named after its original scenario where residents of Augusta, Georgia, rent out their homes during the annual Masters golf tournament, this rule offers a valuable opportunity to earn tax-free income and deductions you don’t have to pay for by renting out your personal residence or vacation home.
Let’s dive into the Augusta …
As a society, we should all be concerned about the increasing rate at which private equity firms are acquiring physician groups. Over the last decade, private equity firms have invested nearly $1 trillion in approximately 8,000 health care deals, encompassing a wide spectrum of medical services, from fertility clinics to neonatal care, primary care to cardiology, hospices, and everything in between.
The consequence? Health care has shifted towards a profit-driven model …
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