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It’s Bad Decisions Not Bad Salaries That Put Docs in the Poor House

Commentary on Physician’s Money Digest article by Bo Liu

Medical trainees are worried for their financial futures, blaming enormous student debt for keeping them from becoming rich, according to Physician’s Money Digest. But if doctors end up poor, they probably only have themselves to blame, according to the publication.

Debt Is Up, Reimbursements Could Go Down

In addition to debt, young doctors see the possibility of decreasing reimbursement from third-party payers like Medicare and Medicaid as a threat to their earnings, the publication writes. These reimbursements are predicted to plateau and possibly even decrease, which would cut into future salaries if you compare them to what physicians are making today, Physician’s Money Digest writes.

But while this might be true — if the reimbursements do suffer a decline — it is certain that no doctor will ever be poor, according to the publication.

Financial poverty is defined according to household income and how many people there are in a family unit. Poverty thresholds range from $11,367 for a childless single under 65 to $49,177 for a family of nine or more, according to the U.S. Census Bureau. Meanwhile, depending on their specialization, doctors earn from $201,000 to $443,000 annually, according to Physician’s Money Digest.

If a physician who has been divorced three times drives a car that costs more than half of his annual salary, the only thing he is poor of is smart decision making, according to the publication.

Because patients associate high quality with high costs and want to get the best they can for their health, doctors have always been well-compensated for the jobs they do and the high level of trust that is involved, according to the Physician’s Money Digest. Therefore, “poverty” is not a word that will ever apply to doctors, according to the publication.

Source: Physician’s Money Digest

Posted by: Wealthy Doctor

Permalink:  http://wealthy-doctor.com/its-bad-decisions-not-bad-salaries-that-put-docs-in-the-poor-house

It’s Bad Decisions Not Bad Salaries That Put Docs in the Poor House - overview

Summary: Medical trainees are worried for their financial futures, blaming enormous student debt for keeping them from becoming rich, according to Physician’s Money Digest. But if doctors end up poor, they probably only have themselves to blame, according to the publication.

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