Beyond the White Coat: Wealth Management for Physicians in Turbulent Times

By Jeff Hall

As a physician, you have a unique set of professional and financial challenges set against a current backdrop of extreme economic, political and social uncertainty. When it comes to your personal finances, you have two choices for successfully navigating all of the ambiguity; do it yourself or hire someone to help you. Both will require your time, but the latter can actually save you time. And because of the growing shortage of physicians in our country, your time as a physician will become increasingly more difficult to manage, so finding the right financial professional is critical.

In Beyond the White Coat, Jeff Hall confirms the three macro trends shaping the delivery of healthcare, identifies the five most pressing challenges you are or will be facing, and explains how you can proceed with finding help to maximize the dollars that are gradually becoming more difficult to earn.

• Language: English
• Publisher: BookBaby
• Release date: Sep 1, 2014
• ISBN: 9781483537610

Book preview

NOTES

INTRODUCTION: Physicians under Increasing Professional, Financial, and Personal Stress

According to the Centers for Disease Control and Prevention, physicians handle 1.3 billion patient encounters in medical offices and hospital emergency rooms throughout the country each year. They provide solutions, guidance, encouragement, and peace of mind while improving the quality of life of their patients and in many instances, saving their lives. Physicians are on the front-line of patient care and lead the healthcare delivery process. As a result, they are some of the most respected professionals in our society.

Furthermore, given their level of education and unique responsibilities, it makes sense that the average physician would be better compensated than most other professionals. Consequently, they play a critical role in the economics of healthcare delivery and, subsequently, have a significant economic impact on the communities they practice in. Consider the following research about physicians prepared by IMS Health for the American Medical Association: ¹

Total economic output: $1.6 trillion from patient care physicians

Per capita economic output: $2.2 million per physician

Jobs: 14 jobs, on average, supported by each physician

Wages and benefits: $1.1 million, on average, supported by each physician

Tax revenues: $90,449 in local and state tax revenues, on average, supported by each physician.

Despite the economic benefit they have on society, many physicians find their own personal money management to be stressful and often frustrating. Given how convoluted the delivery of healthcare has become, it’s no wonder that many physicians find it hard to be deliberate about managing their personal finances. Furthermore, the increasing regulatory burdens and growing advocacy for reducing physician pay has made the current environment a hostile one toward those who keep our society healthy.

When asked why they went into medicine, most physicians will tell you that it was to make a difference in people’s lives while enjoying a stimulating career—not to make lots of money. However, far too many physicians find themselves unable to enjoy their personal lives or their careers the way that they had once hoped—and really the way they deserve.

Many physicians find themselves subjected to increasing levels of personal and professional stress that is rooted in their financial circumstances. This is true regardless of how prominent they are, how much wealth they have accumulated, and whether they are a part of a stable and growing practice or are experiencing a major financial transition such as joining a different practice, dissolving a partnership, or preparing for retirement in the not-so-distant future.

What’s Ahead: A Roadmap for the Guide

As a wealth manager dedicated to the financial success of physicians, I have conducted interviews with medical-industry practitioners, administrators, and other key players.² Based on my research and available industry reports, I have written this guide with three simple goals in mind:

• To present an up-to-date big-picture review of the macro factors and specific financial challenges physicians are up against now and will be facing in the coming years. As a physician, you may be aware of much of what will be presented; however, putting it all together will be useful to you and your attorney, accountant, financial advisor, insurance agent, and other professionals you may work with.

• To review why many physicians have found their financial lives unsettled, not so much to highlight the problems, but instead to make it easier for those who read this guide to go forward, gain traction, and achieve their financial goals.

• To encourage you to be proactive and move forward by presenting you with both a recommended general solution and a simple specific solution for achieving your long-term goals.

The Financial Challenges Roadmap for Physicians below illustrates the territory we will be moving through.

First, I will present the three major trends and transitions currently affecting the practice of medicine. Then,