How to Build Wealth in Healthcare as a Clinician?

 

 

The society assumes that healthcare professionals (HCPs) are wealthy. They are basking in fame, respect, and money. However, the proportion of rich HCPs in India to those struggling financially is heavily skewed. The decade-long studies, internships, fellowships, and residencies, followed by practice, can stunt the path to affluence. Though the internet is flooded with backdoors and accessory tricks on ‘how to become a millionaire as a physician?’, there is no definitive solution that works. The right approach to build wealth in healthcare is through awareness, the right financial advice, and strategy. 

 

Why Do Healthcare Professionals Need Specialized Planning?

‘How to become rich in healthcare’ needs a distinctive modus operandi. This is based on certain factors that differentiate Indian healthcare as a profession from other walks of life. 

 

Delayed start of professional work

Healthcare courses are expensive. It takes 4-6 years for graduation, followed by 3 years of postgraduate studies. Internships, work experiences, observerships, and residency programs are essential after medical school to prepare a healthcare professional for clinical practice in real-world settings.

 

Costly education

Healthcare courses and preparatory exams for getting into med school are expensive. Though governmental institutions offer minimal fees, the study materials, practical exams, and related paraphernalia do need substantial investment. Most HCPs are deep in educational loans by the time they kickstart their professional careers.

Unstructured variability of income

Some internet reports suggest that the salaries of doctors in India vary depending on their qualifications and specialties. 

The average salary ranges for different degrees are as follows: MBBS graduates can earn between 0.5 to 14 lakhs per annum, while BAMS (Bachelor of Ayurvedic Medicine and Surgery) holders have a range of 0.3 to 8.5 lakhs. BDS (Bachelor of Dental Surgery) professionals typically earn between 0.2 to 8.5 lakhs. 

Doctors with a DNB (Diplomate of National Board) degree have a higher range of 0.6 to 16.7 lakhs, and those with an MD or MS (Master of Surgery) degree can earn from 0.9 to 30 lakhs annually. It's important to note that these salary figures can vary depending on various factors like location, experience, and type of practice.

With such variable factors in place, HCPs in support of the right financial advisors, must establish methods for both—build wealth in healthcare and how to earn extra bucks in healthcare.

 

 

Building Wealth in Healthcare—One Step at a Time

The idea of financial independence must sink in early. As an aspirant and then a healthcare student, financial motivation is a must for stability in life, whilst honestly learning and honing skills. This will be the ultimate mantra to success in healthcare.

 

Financial planning in med school

The earlier the better; medical school is a great time to cultivate good financial habits, but the truth is, no medical school that we know of offers a straightforward, step-by-step program on financial education.

• A low-cost-of-living med school is the best—the one that offers the biggest bang for your buck. The experienced cohort of HCPs onboard our team swears by the idea that apart from a few bad apples, no matter which med school you attend, if it is accredited with an established OPD flow and strong alumni, go ahead and apply. The idea is to spend minimal on education, hostel expenses, and other hidden costs. If you are honest with your studies and smart in upskilling, you can also be on par with the premium league schools. 
• Choose your educational loans smartly. Choose a suitable plan and start repaying early to avoid compounding interests unnecessarily. In case you are looking to pay off your medical school loan, feel free to read our guide HERE. 
• Side hustles—wondering how to earn extra bucks in healthcare? HCPs today have diverse side job options like those in Medical Writing, teleconsultations, Advisory, SMEs, Medical Coding, etc. Experts in team ANASTOMOS have compiled a series on the top side hustles/side gig types in healthcare and how to navigate them in healthcare. 

 

Choosing specialties

When selecting a specialty, it's important to consider your personality and interests. Some surgical fields might offer higher pay, but do they align with who you are and what you're passionate about? If not, you may face a trade-off, working in a field that doesn’t resonate with you, purely for financial gain. Pursuing a career solely for money, without genuine interest is not wise.

 

Investments to diversify the financial portfolio

Building an investment strategy for healthcare professionals needs self-study and financial advice from advisors who specialize in this sector. 

• Investment options include stocks, mutual funds, real estate, bonds, insurance, gold, the National Pension System (NPS), and fixed deposits (FDs). 

• Stocks provide high returns but with higher risk, while mutual funds offer diversified investments through professional management. 

• Real estate can generate rental income and appreciate over time, and bonds offer safer, fixed returns. Insurance plans like ULIPs mix investment and life cover. 

• Gold remains a stable choice for wealth preservation. 

• Doctors should consider tax-saving investment options like the Public Provident Fund (PPF) and the National Pension System (NPS) to optimize their tax savings. Choosing the right option depends on your financial goals, risk appetite, and time horizon.

Healthcare professionals understand the importance of health insurance. They must extend their insurance coverages to critical illness and disability insurance to safeguard their income and assets in the event of unforeseen medical problems.

 

Understanding financial regulations and opportunities

A glance into the financial opportunities and laws unique to India is essential.

 

Government Schemes: Doctors should consider government initiatives like the Pradhan Mantri Suraksha Bima Yojana (PMSBY) and the Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), which provide life and accident insurance coverage.

 

NPS for Retirement: As discussed before the National Pension System (NPS) presents an excellent option for retirement planning. It offers tax deductions while ensuring a steady pension income post-retirement.

 

While climbing the financial ladder, HCPs must understand tax benefits. They can utilize Section 80D to deduct health insurance premiums and Section 44ADA for simplified tax return filing. Additionally, forming a Hindu Undivided Family (HUF) may be beneficial in certain situations, as well as addressing Trust and Estate Planning needs.

 

 

Build Wealth in Healthcare with Extended Support From ANASTOMOS

Anastomos is India’s first exclusive healthcare providers’ network that offers 10 different services to bolster the careers of HCPs through upskilling, streamlined career advancements, and financial success. Leveraging the Learning and Development section, Side-Gigs panel, and the MarketPlace with top financial advisors are some of the many ways that may plan and design your financial understanding based on your portfolio and needs.