Money Tips for Young Doctors

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I deal with doctors in private practice on a daily basis and what I find shocking is that nobody teaches them the “business of medicine.” I speak with a lot of brilliant doctors, who know medicine inside and out, but when it comes to business affairs they are clueless.
That is not a shot at doctors, because as a country we produce the best doctors in the world, but the fact is that they’re given very little in terms of education on the business side of the industry.
Rising overhead costs & declining reimbursements are really putting a squeeze on physicians and they need to do something that will help them generate more income without having to see more patients.
That is why there is a shortage of PCP’s in the country. Young doctors with massive school debt are not looking to enter a field that demands enormous amounts of responsibility for little pay. If more doctor knew about what financial rewards dispensing can offer their practice they would probably be more open to entering into primary care.
Typically, most doctors hear about dispensing at the conferences from other doctors who are dispensing from their office. They learn about the benefits & the easy of the program and how well it has worked for them. If you research the medical blogs you will find a lot of doctors who are pessimistic about dispensing, but have not done it themselves.
It is mostly doctors who have very little knowledge about dispensing and how it works. I recommend if you are interested in dispensing that you speak with doctors that are dispensing! They can give you concrete information on how it works, what patients feel about the program & how the staff reacts to the program.
Physician Dispensing is the easiest way to generate ancillary income without having to see more patients. Not only does it increase revenue, but it also reduces the amount of time you spend on the phone with pharmacies.
It is not uncommon for doctors to generate over $100,000 in ancillary revenue for their practice. Imagine having your school loans paid off in 2-3 years, without having to see more patients or do more work that what you’re already doing.
Do you think doctors would be happier at work having their debt paid off? Do you think those good feelings would transfer to the staff & patients? I think so.
www.physiciandispensingsolutions.com

David of OH 1:02PM April 10, 2012

It's good to see solid financial advice being given out to physicians, particularly the young ones. There is little to no financial training being given in high school, college, medical school, or residency, so most docs have to learn as they go, and sometimes they never do. Even the basics as outlined in this article elude many. I've started a blog in an effort to educate my colleagues on personal finance and investing. http://whitecoatinvestor.com

White Coat Investor of UT 1:19AM October 21, 2011

That is so helpful of you to share, Martin, thank you.

Kimberly Palmer of DC 7:39PM February 08, 2011

Hello,
As a doctor early in my career, I found the many issues associated with medical student debt and retirement savings quite challenging. I wrote a paper that explores the financial challenges that medical students considering a career in primary care face and the potential to financially over-extend oneself early in their career (M. Palmeri, "Economic impact of a primary care career: a harsh reality for medical students and the nation". Academic Medicine; November 2010).
The website to the paper is below. At the end of website is a financial calculator that students can use to help quantify their various expenses and develop a savings plan. This is the tool I used to help with my budget planning. On page 1, it allows you to enter your expenses and on page 2 it gives a 10 year projection of your income and expenses.
http://journals.lww.com/academicmedicine/Fulltext/2010/11000/Economic_Impact_of_a_Primary_Care_Career__A_Harsh.26.aspx
Good Luck!

Martin Palmeri of NH 1:54PM February 08, 2011