Physicians considering non-clinical career options seem to fall into one of two categories with regard to their financial compensation. They have either never really been people who make decisions with money as a driving force, or they are frustrated with their reduced reimbursements and are looking to restore thir prior compensation level through a new career, supplemental consulting, or an entrepreneurial pursuit. I happened to fall into the former group, but the principles are similar regardless. I covered this thoroughly in “Do You Feel Like You Wasted All That Training,” and my observations have not changed much, but I will an overview of my thoughts here.
Much of the compensation discussion is determined by your perception. That starts with how much money you are making now, what your financial goals are, and how much effort you are willing to invest. For example, I changed careers after only 4 years in practice, expected to make substantially less money for several years, and was willing to work hard to earn my compensation in my new career. I had to work as hard as anticipated, but my compensation within the first few years far exceeded my expectations. Someone in their late 40’s with a much higher salary, a desire to work less, and high compensation expectations and needs may find themselves in a different situation when exploring their options.
Similar to clinical practice, the compensation in non-clinical jobs varies widely, depending on the position. The range covers the spectrum, from any job that you encounter in your day, to the CEO of a large company. What is most important is mapping out a plan that includes your financial needs vs an income plan with specific timelines. This is also an area to discuss at length with your spouse, particularly if you expect to take a salary cut during a transition, which is often the case for an abrupt career change.
Here is a Modern Medicine article that I wrote on the topic of financial planning with Dan Kramer, senior vice president of investments at the Constantine Consulting Group of Wells Fargo Advisors, Paramus, New Jersey.
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